Bet365 has announced plans to reduce its workforce by approximately 340 positions, accounting for about 3% of its total employees, due to rising regulatory and tax-related costs. These layoffs will affect offices located in Stoke-on-Trent, Malta, and Gibraltar.
The global gaming company cited a combination of a challenging marketplace and increasing costs associated with regulation and taxation as the primary reasons for this move. A representative from Bet365 indicated that the company is actively seeking ways to minimize the layoffs and support the workers impacted by this decision.
“We are committed to minimising the impact on our people and are exploring all avenues to reduce the number of redundancies,” the spokesperson stated, adding that a voluntary redundancy program is being planned as a first step. “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 financial strain on Bet365 is influenced by a significant tax increase imposed by the UK government, which raised the remote gaming duty from 21% to 40%, effective April 1. This surge is compounded by the introduction of a new remote betting duty scheduled to take effect in April 2027, which will elevate the tax rate on most sports betting activities, excluding horse racing, from 15% to 25%.
Other companies in the gaming sector have also responded to the tax hikes with drastic measures, such as closures of retail locations. For example, William Hill recently informed its staff of plans to permanently close around 200 of its retail shops across the UK, which represents about 15% of the company's total locations. In another instance, Betfred announced it would be closing 132 of its betting shops in the UK, resulting in layoffs for over 600 workers.
Betfred's CEO, Jo Whittaker, commented on their situation, stating, “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.”
