Entain, the London-listed gambling company, is set to eliminate 500 positions across its operations as part of a cost-reduction strategy in response to increasing online gaming taxes in the UK and intensified competition from prediction markets.
This job reduction accounts for approximately 2% of the company’s total workforce. A spokesperson confirmed these layoffs to Reuters following a report from Bloomberg News, which referenced an email sent to Entain staff.
The affected roles will primarily be within corporate functions, as well as product and technology teams, and will not impact the retail operations, including the well-known Ladbrokes and Coral brands, according to company sources.
In the internal communication, Entain indicated that these changes aim to enhance operational efficiency and align with its goals of growth, margin improvement, and cash generation.
The workforce cuts come as the FTSE 100 company addresses a net debt of £3.64 billion ($4.9 billion) projected for the end of 2025. Currently, Entain's market capitalization is around £3.68 billion, slightly exceeding its total net debt, while its share price has dropped nearly 40% over the past year, now standing at £5.76.
This decision stands in contrast to earlier statements made by CEO Stella David, who had indicated that job cuts were not on the horizon, despite acknowledging that UK tax hikes could impact the company by up to £200 million ($268.9 million) annually.
“As part of our commitment to improving operational efficiency and agility, we have initiated organizational changes that will unfortunately affect several roles across the group in the coming months,” stated an Entain spokesperson.
“These changes are designed to strengthen Entain as a business and further demonstrate our strategic commitment to maximizing shareholder value. We are currently consulting with those impacted to provide support during this transition.”
The remote gaming duty is set to rise from 21% to 40% in April 2026, which is projected to generate an additional £1.1 billion ($1.48 billion) in annual tax revenue by 2031. However, gambling operators have expressed concerns that the increased rate could jeopardize the viability and growth of the UK market.
In March, Entain announced that it expected group-wide cost reductions to counteract over 50% of the additional expenses stemming from the tax changes. Following the announcement of these tax measures last November, the company also scaled back its planned marketing expenditures.
Similar reductions in marketing budgets have been reported by William Hill's owner, Evoke, and Flutter Entertainment, which operates brands like Sky Bet, Paddy Power, and Betfair. Earlier this year, Flutter confirmed layoffs affecting the marketing team at Paddy Power.
In April, Entain revealed that it had closed several Ladbrokes locations in Ireland, with the recent job cuts being unrelated to these retail closures.
In late June, Entain finalized an agreement to sell its 20% stake in its Central and Eastern European operations to EMMA Capital for approximately €425 million ($571.55 million), or about £366 million ($492.21 million). This transaction marks the initial phase of a gradual exit from the region aimed at reducing debt.