Ladbrokes and Coral owner Entain has announced plans to cut around 400 jobs globally, citing rising gambling taxes as the primary reason. The group, which also owns Sportingbet, has launched a consultation affecting up to a fifth of its 2,000 customer care roles across 11 countries, including the UK. The consultation is expected to conclude by November, with the exact number of UK job losses yet to be confirmed.

Entain’s chief executive, Stella David, has warned that proposed government plans to double the machine games duty (MGD) to 40% could exacerbate job losses and lead to significant betting shop closures. In a letter addressed to Prime Minister Andy Burnham, David highlighted that such a tax increase could add approximately £100 million annually to the company’s UK operating costs, potentially resulting in 1,470 betting shop closures and nearly 16,000 job losses across the sector. She emphasized the importance of betting shops in smaller towns and rural communities, where they serve as social hubs.

The company has already been affected by recent tax hikes. Since April, the remote gaming duty rose from 21% to 40%, and a new general betting duty is anticipated to be introduced next year. These changes have reportedly increased Entain’s UK tax burden by about £250 million annually. The gambling industry has experienced significant job cuts in recent months, with other operators such as Bet365 announcing the loss of 300 jobs. The sector has seen more than 4,500 roles cut since the tax increases were introduced earlier this year.

Entain employs roughly 13,000 people in the UK, with more than 12,000 working in the company’s 2,300 Ladbrokes and Coral retail shops. According to the company, half of its retail workforce are women, 52% work part-time or on flexible hours, and over 20% are under 25 years old.

While Entain acknowledges the risk of gambling-related harm for a minority, David underscored that gambling remains a responsible pastime for many millions of adults, forming part of the sporting and social fabric through activities such as betting on football or the Grand National.

The government, led by Chancellor John Healey, is expected to outline details of the Budget on October 28. As part of renewed efforts to revitalize high streets, Prime Minister Andy Burnham has proposed measures granting local councils greater powers to regulate gambling establishments, gaming shops, and vape stores. The cross-party Social Market Foundation estimates that raising the machine games duty to 40% could generate up to £458 million in tax revenue but warns of the potential economic impact on the sector and communities reliant on betting shops.

Industry analysts and trade groups have highlighted fears that increased taxation may ultimately hurt government revenues due to shop closures and job losses, while supporters of the tax hikes point to the need for greater regulation to address gambling-related social issues. The forthcoming Budget will provide further clarity on how these competing interests might be balanced moving forward.