Entain Announces Up to 400 UK Customer Care Job Cuts Amid Tax Pressure

Entain plc will cut as many as 400 jobs in its UK customer care division, citing the need to streamline operations after an increase in UK gambling taxes. The move is part of a broader industry response to April's remote gaming duty hike and the prospect of further tax changes in the upcoming Autumn Budget.

Direct Response to UK Gambling Tax Increases

Entain’s decision follows the UK government’s raise of remote gaming duty from 21% to 40% earlier this year. More changes could be imminent, as Prime Minister Andy Burnham’s administration is considering increasing machine games duty (MGD) in October’s Autumn Budget. MGD currently stands at 20% for Category B and most land-based gaming machines, with a 5% rate for machines costing £0.20 or less per play, and a 25% rate for those costing £5 or more.

“The proposed changes are being made to ensure our business remains competitive, financially resilient and well positioned for the future, as our sector faces an increasingly challenging operating environment,” said Stella David, CEO of Entain plc.

The job reductions target customer care and are positioned as a move to "reduce duplication, establish centres of excellence and enhance the experience for customers". The reductions are part of a broader plan, following Entain’s recent announcement of up to 500 global job cuts.

Sector-Wide Cost-Cutting After Tax Reform

Industry-wide, operators are realigning cost structures in response to higher taxation. In the past week, bet365 revealed plans to cut 340 jobs across UK and European hubs. Other operators, including Flutter Entertainment plc, Betfred, and evoke, have announced closures of retail locations across the UK. All cite escalating tax burdens as the driver for restructuring.

Nicole Garrett, CEO of the Bingo Association, warned that a further MGD hike would render bingo club closures across the UK “inevitable”.

The Risk of Further Tax Hikes and Sectoral Impact

Entain’s concerns centre on potential MGD increases. In a letter to the Prime Minister, CEO Stella David outlined the operational and employment risks to UK betting shops. The letter pointed to EY analysis commissioned by the Betting and Gaming Council:

• A rise to 40% MGD could mean up to 1,470 betting shop closures
• As many as 15,900 job losses
• A net loss to the UK Exchequer of about £120m

David emphasised that these figures represent real job losses and community impacts: “They are people losing their jobs and communities losing long-established high street businesses.”

Regulatory Change and Market Behaviour

Stella David argued that steep MGD increases risk diverting gambling activity away from the regulated sector. EY modelling forecast that, in an extreme case, a 40% MGD would result in £1bn of stakes leaving the legal retail market.

David’s letter asserted: “A tax increase of the proposed scale would also risk pushing gambling activity away from the regulated high street rather than simply reducing it.” The same communication stressed the role of retail shops and their staff in age verification, customer protection, and visible regulatory compliance.

Keeping gambling within the regulated sector, David said, protects employment and ensures tax contributions. The CEO’s message advocated for policies that support the sustainability of British jobs and local businesses, warning against unintended support for unlicensed operators.

Policy Signals from the New Government

Prime Minister Andy Burnham's government has already moved to review the ‘aim to permit’ rule, which limits the ability of local councils to refuse new high street betting shops. Any shift away from this principle, combined with tax increases, could further reshape the high street betting environment.

Operator Adaptation in a Changing Regulatory Landscape

Operators are now forced to adapt quickly, balancing regulatory obligations and business viability. The UK iGaming and betting sector is experiencing accelerated consolidation and restructuring as the tax and policy landscape grows more unpredictable. Read more about UK market developments.

“Our shops, and crucially the colleagues who work in them, form part of the infrastructure that helps protect those customers,” wrote David, underscoring the staff’s role in promoting responsible gambling.

The months ahead will show how operators large and small adjust, and whether further job losses can be averted if additional tax hikes are implemented.