Bet365 to Make 340 Redundancies as Online Tax Burden Increases

Bet365 is to cut 340 jobs, in part as a result of increased taxation in the UK, making it the latest tier one operator in the market to reduce its workforce.

Reports suggest the cuts will be made predominantly at Bet365’s headquarters, with 300 staff set to lose their jobs at the company’s Stoke-on-Trent office; the remaining 40 jobs will be cut in Gibraltar and Malta. Bet365 is the largest private sector employer in Stoke, with more than 5,000 of its staff being based there.

In April, remote gaming duty, paid on online casino bets, was raised from 21% of gross gambling yield (GGY) to 40%. There will be an additional online tax increase in April 2027, when general betting duty, paid on online sports bets, will be raised from 15% of GGY to 25%; bets on horseracing will be exempt from the increase.

A 3% workforce cut

A Bet365 spokesperson is quoted as saying:

"As an international business, we continually review and assess our operations to ensure the business' long-term future. We're currently facing a highly competitive trading environment, plus increased regulatory and tax-related costs.

"As a result we're restructuring some of our locations this year. Ultimately, this will result in a reduction of approximately 340 roles across our European hubs, which is the equivalent of around 3% of the workforce.

"We are committed to minimising the impact on our people and are exploring all avenues to reduce the number of redundancies. As a first step, we're planning a programme of voluntary redundancies. Our colleagues are our priority. We understand the concerns many will have. Impacted staff have been informed and are being fully supported throughout this process."

More pressure

There could also be an increase in machine games duty (MGD), with reports stating UK Chancellor John Healey is considering raising the rate in the Autumn Budget, which will be announced on Wednesday, 28 October. In June, cross-party think tank the Social Markets Foundation called for MGD on Category B machines in the UK to be raised from 25% of net takings to 40%.

This would not impact Bet365, as it does not operate any physical locations, but it is potentially another sign of how difficult the market will be to operate in. Shop closures and redundancies are becoming a common theme.

In July, reports said Ladbrokes and Coral owner Entain is set to make approximately 500 redundancies, as part of an efficiency initiative. The cuts would represent 2% of Entain’s global workforce.

Closures at Flutter

Last week, Flutter Entertainment confirmed up to 100 of its Paddy Power shops are “under review”, with approximately 400 jobs being at risk of redundancy.

In March, reports suggested Flutter was restructuring Paddy Power’s marketing department, with redundancies a possibility. Flutter, which also owns Betfair and Sky Bet, announced 57 shop closures at Paddy Power last October, ahead of the announcement of the tax increases.

Shop closures have also been announced by William Hill owner Evoke, which confirmed in April it would be closing 270 of its shops, representing about 15% of its retail estate. Meanwhile, Betfred announced in July plans to close 132 of its shops and reduce its workforce by more than 600 employees.

In August, industry trade body the Betting and Gaming Council said 540 high-street betting shops have closed and around 4,500 jobs have been lost since last year’s Autumn Budget in November, when the tax increases were revealed.