Entain to Cut 400 Jobs as Ladbrokes Owner Blames Andy Burnham for High Street Pressure

Entain has announced plans to cut approximately 400 jobs, blaming the decision squarely on Andy Burnham’s plans and rising operational costs, according to the gambling giant behind Ladbrokes and Coral.

The workforce reduction will eliminate about a fifth of the company’s global customer care team. Stella David, the chief executive of Entain, attributed the cuts to a difficult economic backdrop for the gambling sector, specifically targeting Prime Minister Andy Burnham’s proposed crackdown on betting shops, as reported by City AM.

Tax Hikes and High Street Friction

At the center of the dispute is a government proposal to increase machine games duty (MGD) from 20 percent to 40 percent. According to industry thinktank estimates cited in the source material, the doubling of the levy could cost the broader gambling sector £460m. For Entain alone, David warned in a letter to the Prime Minister that the tax hike would cost its UK retail business £100m annually.

Burnham has defended his plans by arguing that betting shops and vape sellers have hollowed out town centres across the country. However, retail operators and leisure executives have pushed back sharply against these regulatory efforts. Frasers Group founder Mike Ashley and JD Wetherspoon chairman Sir Tim Martin have both criticized the government’s approach. Sir Tim Martin stated to City AM that it is not up to the Prime Minister to dictate which businesses can operate on the high street.

Ladbrokes and Coral betting shops are sports and racing businesses, with machine gaming only one part of a much broader offer, David wrote in her letter to Burnham, noting that the retail outlets function as staffed community hubs with decades of local roots. City AM

Market Pressures and Regulatory Precedent

Entain executives argue that the proposed tax increase threatens the company’s employment pipeline, particularly its ability to hire young workers during a national youth unemployment crisis. Furthermore, leadership contends that heavy taxation will not stop gambling, but rather push consumers away from the regulated high street and toward illegal alternatives.

The latest fiscal friction follows previous tax levies imposed on remote gambling under the administration of Burnham’s predecessor, Sir Keir Starmer. Entain representatives stated that the current job cuts form part of ongoing efforts to offset the impact of heightened taxes and restructure the company into a sharper, more agile operation.

Market reaction followed the announcement as shares in Entain dropped approximately 0.7 percent to 494p on the morning of Wednesday. The company was recently demoted from the FTSE 100 to the FTSE 250 index earlier in the month.