Betting giant cuts 500 jobs as Labour tax hike delivers £200million bill
Betting giant Entain is cutting 500 jobs as it attempts to absorb a £200million increase in its annual tax bill.
The owner of Ladbrokes is under growing financial pressure after gambling taxes almost doubled, while its shares have fallen sharply and its debts have climbed to £3.64billion.
Entain announced on Thursday that it would cut around 500 roles from its global operations, affecting approximately two per cent of the FTSE 100 company's workforce.
The cuts come after the remote gaming duty paid by online gambling companies increased from 21 per cent to 40 per cent on April 1, 2026.
The tax rise is expected to generate an additional £1.1billion a year for the Treasury by 2031, but Entain warned in March that it would add around £200million to the company's annual costs.
The Ladbrokes owner was already carrying £3.64billion of net debt at the end of 2025, placing its finances under further pressure.
Entain's shares have also fallen by 40 per cent over the past year to £5.76, reducing its market value to £3.68billion, only slightly above its total net debt.
In an internal message to employees, the company said the job cuts were intended to improve efficiency while supporting its "priorities of growth, margin expansion and cash generation".
Entain has also moved to shore up its finances through asset disposals.
The company reached an agreement in late June to offload a fifth of its Central and Eastern European business to partner EMMA Capital for approximately €425million, equivalent to around £366million.
This transaction represents the initial phase of a planned withdrawal from the region designed to reduce the firm's substantial debt burden.
The betting operator has simultaneously been trimming its promotional spending, mirroring actions taken by competitors including Evoke, which owns William Hill, and Flutter Entertainment, the parent company of Sky Bet and Paddy Power.
Concerns are mounting that the government's aggressive taxation could drive customers towards unregulated betting platforms operating outside legal oversight.
Consultancy firm H2 Gambling Capital has projected that nearly one in five online wagers could migrate to the black market within two years.
The research outfit estimates that illegal betting stakes may surge from £17billion to as high as £33billion by 2028, representing a dramatic expansion of unlicensed gambling activity.
Industry leaders have strongly criticised the tax increases, with some executives cautioning that the measures could jeopardise the long-term viability of Britain's regulated betting market.