Entain to Cut 500 Roles to Offset UK Online Gambling Tax Increases
Entain's Response to UK Online Gambling Tax Hikes
Cost-Cutting Measures and Role Reductions
July 16 (Reuters) - Ladbrokes owner Entain said on Thursday it will cut a number of roles across the group, aiming to cut costs and mitigate the impact of online gambling tax increases and growing competition from prediction markets.
Details of the Job Cuts
A spokesperson for Entain confirmed to Reuters that 500 roles were being removed.
Industry-Wide Impact of Tax Increases
The gambling industry has been bracing for higher costs from Britain's proposed tax increases on online betting and gaming, with operators rolling out cost-saving measures and warning the hikes could squeeze profitability and growth.
Entain's Strategy to Offset Tax Impact
Entain has been looking to offset the impact of tax increases, which it expects will add about £200 million ($269.50 million) to annual costs. The sports betting company had said in March that group-wide cost cuts would offset the impact of more than 50% of the tax hikes.
Financial Moves and Stake Sale
In late June, Entain said it had agreed to sell a 20% stake in its Central and Eastern European business to partner EMMA Capital for about €425 million as the first step in a phased exit aimed at reducing debt.
Additional Context and Industry Reports
Workforce Reduction in Perspective
Bloomberg News first reported that the London-listed betting group was cutting 2% of its workforce.
Currency Conversion
($1 = 0.7421 pounds)
Reporting Credits
(Reporting by Sri Hari N S in Bengaluru; Additional Reporting by Nithyashree R B; Editing by Joyjeet Das and Jonathan Ananda)
