UK-headquartered gambling giant bet365 has become the last of the UK’s five largest gambling firms to announce job cuts since the tax increase.
The firm, which is led by the Coates family and is the biggest private employer in Stoke-on-Trent, is set to reduce its workforce by 340 – or 3%.
Around 300 of bet365’s estimated 5,500 employees in Stoke-on-Trent are set to be impacted, with the other 40 affected roles in its Gibraltar and Malta offices.
A bet365 spokesperson said: “As an international business, we continually review and assess our operations to ensure the business’ long-term future. We’re currently facing a highly competitive trading environment, plus increased regulatory and tax-related costs.
“As a result we’re restructuring some of our locations this year. Ultimately, this will result in a reduction of approximately 340 roles across our European hubs, which is the equivalent of around 3% of the workforce.
“We’re committed to minimising the impact on our people and are exploring all avenues to reduce the number of redundancies.
“As a first step, we’re planning a programme of voluntary redundancies. Our colleagues are our priority. We understand the concerns many will have. Impacted staff have been informed and are being fully supported throughout this process.”
The online-only bookmaker joins William Hill owner evoke; Entain, which owns Ladbrokes Coral; Flutter Entertainment, operator of the Sky Bet, Paddy Power and Betfair brands; and Betfred in announcing that its workforce will be trimmed due to the impacts of the 19% increase in Remote Gaming Duty, and the pending 10% rise in General Betting Duty.
Major UK gambling job cut announcements:
- In March, evoke announced its plans to close up to 200 William Hill shops. It is rumoured that this could impact up to 1,500 employees.
- In mid-July, Entain Chief Executive Officer Stella David U-turned on previous plans to not cut jobs. Bloomberg reported that the multinational is set to cut up to 500 jobs, and Entain later confirmed to SBC News that a number of roles would be impacted.
- Later that month, Betfred confirmed that it would be closing 132 shops starting later this year, affecting over 600 of its workforce.
- At the beginning of September, Flutter confirmed that up to 100 Paddy Power shops are “under review”, stating that “approximately 400 roles could potentially be put at risk of redundancy”.
The common theme? All of these businesses have attributed the job losses in some part towards the tax rises.
Given bet365’s position as an online-only bookmaker, the job cuts will come in different areas to those at William Hill, Betfred and Paddy Power, where it looks like retail is the first hurdle to fall. Entain stated that jobs in its corporate functions, as well as product and technology teams, would be affected.
bet365 job cuts shine a light on IPPR projections
The news has brought to light the Institute for Public Policy Research’s (IPPR) comments around the gambling tax hike last year.
Carsten Jung, Associate Director for Economic Policy and AI at the IPPR, stated that due to the nature of the tax rises, “employment effects should be limited”.
The IPPR also stated that the Betting and Gaming Council’s (BGC) estimate that up to 40,000 jobs could be lost as a result of these increases was “overstated” and “seriously flawed”.
While the number of job cuts is yet to hit 40,000 across the UK industry, the latest cuts at bet365 cause further concern about the sector, with the impacts on its biggest businesses there for all to see.
Operators smaller than these gambling conglomerates will also be desperate to find ways to mitigate these headwinds as bookmakers in the UK find themselves under all manner of pressure.
The BGC has weighed in on the situation, explaining that the sector continuously warned that scenarios like the one at bet365 would occur.
“This is yet more evidence of the real-world consequences of the tax rises imposed on Britain’s betting and gaming industry,” a statement from the trade body read.
“The sector repeatedly warned that higher taxes would lead to job losses, less investment and damage to successful British businesses, and sadly that is exactly what we are now seeing.
“Bet365 is one of Stoke-on-Trent’s biggest employers and a major British success story. The loss of hundreds of jobs will be deeply felt by workers, their families and the wider local economy.
“Britain’s regulated betting and gaming industry supports tens of thousands of jobs and contributes billions to the economy. The Government must now rule out any further tax rises on the sector. Ministers should instead pursue an evidence-led approach which protects jobs, investment and the regulated market, rather than handing an advantage to the unsafe, unregulated illegal gambling market.”
