Gaming giant Entain is preparing to cut hundreds of jobs due to the ongoing tax pressures in the UK. As it turns out, as many as 400 workers might be affected.
Entain Could Reduce Its Customer Care Team by 20%
Citing increasingly challenging operating conditions, Entain, which operates the Ladbrokes and Coral brands in the UK, confirmed plans to part ways with up to 400 customer care team members. The company emphasized that this is a necessary measure in order for it to remain competitive.
For reference, Entain operates 2,300 shops in the UK and employs over 13,000 people in the country.
Entain’s plans to reduce its customer care team, which would affect people in multiple regions, would reduce the customer care team by roughly a fifth. The company did not specify how many of the affected team members will be based in the UK.
Entain’s Decision Is Not Unique
Entain’s decision to reduce its workforce is by no means unique and follows a broader trend in the UK. Previously, bet365 announced plans to end roughly 340 jobs, citing similar reasons as Entain. Before that, Paddy Power, which seems to be experiencing similar problems, confirmed that it had initiated a review that could cause it to shed up to 100 shops, impacting as many as 400 jobs.
The trend was caused by mounting regulatory headwinds and tax pressures in the country. Last year, the government agreed to increase taxes on remote gaming from 21% to 40%. The tax on online sports betting, on the other hand, increased from 15% to 25%.
At the same time, the government is currently eyeing further tax increases that could raise the machine games duty to 40% – another controversial measure that has been firmly rejected by industry stakeholders.
The gaming industry has warned against further tax hikes, saying that undermining the legal gaming sector would only give power to the already huge black market. According to stakeholders, higher taxes would make legal companies less competitive, allowing unlicensed businesses to claim an even greater market share.
While gaming industry representatives emphasized that they are not asking for the industry to be insulated from taxation, they encouraged the government to exercise moderation and consider the adverse effects that higher taxes could have.
In other news, Entain was just dealt a blow in court after the UK High Court rejected claims that Outplayed and OddsMonkey have infringed on Entain’s trademark and copyright.