Entain CEO Appeals Directly To PM As Company Tables More Job Cuts

Entain is poised to embark on a fresh round of job cuts, according to reports. The gambling giant behind Ladbrokes and Coral is exploring streamlining its staffing levels further amid continued financial difficulties.

The tax burdens placed on betting companies have been evident. In April, remote gaming duty paid on online casino wagers soared from 21% of gross gambling yield (GGY) to 40%. As of April 2027, general betting duty paid on online sports bets will leap from 15% to 25% of GGY, but horseracing will be exempt. Nevertheless, Entain deems it necessary to take more action.

Fresh wave of job cuts tabled

It has been suggested the next stage of Entain’s cost-efficiency initiative could see up to 400 of its 2,000 customer-facing roles axed. This is an interesting development given Entain announced earlier in the summer they would be making 500 redundancies across the business, equating to 2% of its global workforce.

At the time of the initial round of job cuts, centred around the product and technology teams, Entain’s CEO, Stella David, vehemently denied the cuts were linked to gambling tax rises. However, the latest series of layoffs contradicts this. Rather, the cuts have been termed by Entain as a "simplification" of this division owed to continued tax pressures on the industry.

Contents of letter to PM revealed

Amid talk of a new wave of job cuts, David wrote a 1,300-word letter to the Prime Minister, Andy Burnham, to warn him of the untold consequences for retail betting, given governmental plans to shake things up. Within it, she outlined how brick-and-mortar locations contribute £50 million a year to horseracing, and how this would affect the sport more widely speaking.

She said:

“Fewer viable shops would therefore have consequences not only for our own colleagues and high streets, but for jobs and livelihoods across both racing industries.

“Fewer shops and a weaker retail sector would also mean less sponsorship and commercial support flowing into horseracing, greyhound racing, and the wider network of sports and communities that benefit from the investments.”

The MGD card

Rumours have abounded that the new Chancellor of the Exchequer, John Healey, is mulling over doubling Machine Games Duty (MGD) from 20% to 40% next month. Although this has gained support from prominent gambling reformers, such as the Social Market Foundation (SMF), Entain indicated a steep rise would add £100 million to the cost of running the company’s betting shop business.

David also cited modelling commissioned by the Betting and Gaming Council (BGC) which noted that a new 40% MGD rate could see up to 1,470 betting shops shut, and 15,900 job losses. On top of that, this could result in a net loss of around £120 million for the Exchequer.

Piling on trouble

Although it has been a testing time for Entain, they aren’t alone. Job cuts have been all too common, with Bet365 confirming last week it would be culling 340 jobs across Europe, while Flutter Entertainment also hinted 100 of its Paddy Power shops are “under review”, which could see 400 jobs slashed.

And BGC CEO Grainne Hurst suggested the proposed Entain job losses should serve as a wake-up call. She said:

“Ministers should be in no doubt — further tax rises will put more jobs at risk, force more closures and weaken the regulated sector, while handing an advantage to the unsafe, illegal gambling market.

“The government should heed these warnings before more damage is done.”