Entain (LSE:ENT), the owner of Ladbrokes, said on Wednesday that it plans to eliminate approximately 400 customer care positions as it responds to higher gambling taxes in the UK.
The proposed reductions represent around 20% of the company’s customer care workforce of 2,000 employees.
Entain said the restructuring is intended to address the financial impact of increased gambling duties, which have raised operating costs for betting and gaming companies.
The announcement follows tax changes introduced in November, when gaming duties were increased to 40% and online sports betting levies to 25%.
Entain has also raised concerns about the possibility of further tax increases affecting gaming machines.
In a letter dated 11 September and shared on Wednesday, Chief Executive Stella David urged the UK government to consider the potential employment and economic consequences of a substantial increase in Machine Games Duty.
The company warned that additional taxation could affect employment across betting shops and the communities in which they operate.
Media reports indicate that further increases in gambling taxes, including duties on gaming machines, are under consideration ahead of the October Budget. No additional increase has been confirmed in the supplied material.
The proposed job reductions and Entain’s representations to the government come as the company assesses the impact of existing taxation and the possibility of further changes to gambling duties.
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