UK gambling company Betfred has confirmed that it will cut 600 jobs and close 132 shops across the country. The operator says the cutbacks are due to increased gambling taxes and other rising costs.
The job cuts follow Entain, the parent company of Coral, Ladbrokes, and 50% of BetMGM, which also cut 500 jobs earlier this month.
The companies have strongly opposed tax increases in the UK, urging the government to tackle the growing black market instead of attacking licensed operators.
Betfred CEO Confirms Cuts
Betfred CEO Jo Whittaker confirmed the cuts to Sky News, 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.”
A total of 132 shops will close, although owner Fred Done said that all 1,200 shops could eventually close due to the rising taxes. Betfred will now be left with 1,094 UK shops, down from a peak of 1,680 in 2017.
Done and his brother Peter, who co-founded the business, are the highest taxpayers in the UK. They contributed £400 million ($537 million) last year. In addition to raising gambling taxes, the UK increased corporation tax, which led to the Done brothers’ payments rising.
No Choice But to Cut Jobs
The company said it has now been left with no choice but to cut staff to offset increased costs.
“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,” Whittaker added.
“Our priority now is to support the colleagues affected, and to continue serving customers and communities across the rest of our estate.”
Job Layoffs Hitting Gambling Industry
Earlier this month, Entain confirmed it would reduce its workforce by 2%, equating to 500 job losses. A company spokesperson said the cuts were designed to enhance “operational efficiency and agility.”
“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,” the company added.
In the US, several gambling companies have also made cutbacks. FanDuel laid off hundreds of workers in June. Underdog, PrizePicks, Penn Entertainment, IGT, and DraftKings have also made job cuts in recent months.
The post Betfred Follows Entain in Making Huge Job Cuts as UK Tax Increases Hit appeared first on CasinoBeats.
UK gambling company Betfred has confirmed that it will cut 600 jobs and close 132 shops across the country. The operator says the cutbacks are due to increased gambling taxes and other rising costs. The job cuts follow Entain, the parent company of Coral, Ladbrokes, and 50% of BetMGM, which also cut 500 jobs earlier this
The post Betfred Follows Entain in Making Huge Job Cuts as UK Tax Increases Hit appeared first on CasinoBeats.