Betfred, the UK gambling operator, has announced it will eliminate 600 jobs and shut down 132 shops across the nation. This decision stems from rising gambling taxes and other increased costs.
These layoffs come on the heels of Entain, which owns Coral, Ladbrokes, and half of BetMGM, announcing 500 job reductions earlier this month. Both companies have vocally opposed the tax hikes in the UK, calling on the government to focus on curbing the burgeoning black market instead of targeting licensed operators.
In comments to Sky News, Betfred CEO Jo Whittaker expressed regret over the layoffs, stating, "It is with deep regret that we have today started a consultation with colleagues working in more than 130 of our shops regarding a proposal to close those locations." Following this decision, Betfred will be left with 1,094 shops in the UK, a significant reduction from a peak of 1,680 shops in 2017. Fred Done, the owner, indicated that the closures could escalate, potentially affecting all 1,200 shops due to tax pressures.
Fred Done and his brother Peter, co-founders of Betfred, are noted as the UK’s highest taxpayers, contributing £400 million ($537 million) last year. The increase in gambling taxes coincides with a rise in corporate tax, further boosting their financial contributions to the government.
Faced with no viable alternatives, Betfred has indicated it must reduce its workforce to manage surging costs. Whittaker noted, "We have tried hard to protect all our sites and the colleagues who work in them, but the combined impact of higher employer National Insurance contributions, wage inflation, increases in gambling taxes, and wider economic uncertainty has left us with no choice. Our priority now is to support the colleagues affected, and to continue serving customers and communities across the rest of our estate."
The impact of job cuts is not limited to Betfred; earlier this month, Entain also announced a 2% workforce reduction, translating to 500 jobs. A spokesperson stated that this move aims to improve "operational efficiency and agility," further stating, "These changes will help make Entain a stronger, better business and are a further demonstration of our strategic focus on maximizing shareholder value. We are consulting with all those affected to support them during this process."
In the US, the trend of layoffs is also prevalent among gambling companies. FanDuel reduced its workforce by hundreds in June, while companies like Underdog, PrizePicks, Penn Entertainment, IGT, and DraftKings have also made similar cuts recently.
