Bet365 has announced the elimination of 340 positions across its locations in Stoke-on-Trent, Malta, and Gibraltar. This reduction accounts for 3% of the company's global workforce, with indications that the layoffs are a response to recent tax hikes in the UK.
The company operates solely through digital platforms, making it particularly vulnerable to the increasing taxation on online gambling in the UK. The remote gaming duty surged from 21% to 40% in April, affecting all iGaming activities.
Additionally, a new remote betting duty is set to rise from 15% to 25% in April 2027, although bets on UK horse racing will not be included in this increase. Together, these tax changes represent a significant burden on the company's financials.
A spokesperson for Bet365 stated, “As an international business, we continually review and assess our operations to ensure the long-term sustainability of the company. We are currently navigating a highly competitive market, compounded by rising regulatory and tax costs.”
The hike in the remote gaming duty has already led other UK operators to restructure. Betfred and William Hill have both announced job cuts in recent months, citing the tax changes as a factor in their decisions.
Furthermore, Evoke shut down 200 shops in May, leading to an unspecified but considerable number of job losses. Recently, Paddy Power indicated that up to 100 betting shops might close, putting around 400 jobs in jeopardy.
Companies that manage both online and retail operations have largely mitigated the tax increase by scaling back their physical presence. However, Bet365's absence of retail establishments means it lacks this option, making workforce reductions its primary strategy for addressing the increased costs.
Of the 340 jobs being cut, 300 are located at Bet365's headquarters in Stoke-on-Trent, which employs roughly 5,500 staff. The remaining 40 positions are distributed between the company's offices in Malta and Gibraltar.
The spokesperson emphasized, “We are dedicated to minimizing the impact on our employees and are exploring all possible options to lessen the number of redundancies.” The company will initially implement a program for voluntary redundancies. “Our colleagues are our priority. We recognize the concerns many may have. Affected staff have been notified and are receiving full support throughout this process,” the spokesperson concluded.