Entain to cut 20% of customer care roles as concerns over higher taxes loom

By Reuters News

Sept 16 (Reuters) - Ladbrokes owner Entain ENT.L on Wednesday said it could cut about 20% of its customer care roles and made public a letter it sent to British Prime Minister Andy Burnham voicing concerns over the impact of any further hikes in gambling taxes.

Here are some details from the letter and its decision to cut jobs:

  • Last November, former finance minister Rachel Reeves raised gaming duties to 40% and online sports betting levies to 25%, leaving gambling firms reeling from higher costs and lower profits.

  • Entain said on Wednesday efforts to address the impact of increased gambling taxes would lead to about 400 out of 2,000 customer care roles being cut.

  • Ahead of Burnham's maiden budget in October, the gambling industry could face another slew of taxes on slot machines, according to media reports.

  • In a letter, dated September 11, shared with Reuters on Wednesday, Entain chief Stella David urged Burnham to consider the impact that a substantial increase in Machine Games Duty (MGD) would have on thousands of people working in betting shops and on communities across Britain.

  • "A further doubling of Machine Games Duty would therefore add another significant cost to businesses already struggling to absorb major tax increases, stacking the odds against labour-intensive high-street operators," David said in the letter.

  • The firm beat interim profit expectations when it reported last month, backed by cost cuts and the soccer world cup rush.

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