Betting shops across Midlands face uncertain future as Ladbrokes and Coral owner to axe 400 jobs

Betting shops across the Midlands face an uncertain future as Ladbrokes and Coral owner Entain revealed plans to axe around 400 jobs worldwide due to increased gambling taxes.

The group, which also owns the online sports betting brand Sportingbet, has launched a consultation that could see a fifth of its 2,000-strong customer care jobs go across 11 countries, including the UK.

Both Ladbrokes and Coral have a raft of stores across the West Midlands.

Entain has not revealed how many jobs look set to go in the UK as part of the consultation, which is set to end by November, but the group said high street and part-time jobs would be most at risk.

Entain employs 13,000 people in the UK, including more than 12,000 across its 2,300 Ladbrokes and Coral betting shops.

Both Ladbrokes and Coral have shops in Wolverhampton, Walsall, West Bromwich, Bilston, Tipton, Wednesbury, Birmingham, Cannock, Stafford.

Ladbrokes also has outlets in Dudley, Willenhall and Burntwood; and Coral has shops in Smethwick, Rowley Regis, Rugeley, Kidderminster, Bewdley and Stourport.

Entain’s chief executive Stella David has written to Prime Minister Andy Burnham, warning of further job pain in the sector if plans to double machine games duty are carried out.

She said: “The proposed changes are being made to ensure our business remains competitive, financially resilient and well positioned for the future as our sector faces an increasingly challenging operating environment.

“This decision has not been made lightly, and our immediate priority is to support those of our colleagues who may be impacted through this transition.”

News of the proposed job cuts comes just two months after Entain reportedly confirmed 500 roles were being cut worldwide impacting product technology and group corporate roles.

The company previously warned new UK gambling taxes would have a “massive impact” worth around £250 million.

The rate of remote gaming duty increased from 21 per cent to 40 per cent from the start of April, while a new rate of general betting duty will also be introduced next year, and speculation has been mounting that Chancellor John Healey could hike machine games duty in the autumn Budget.

In her letter to Mr Burnham, Ms David said: “Doubling the standard rate of machine games duty to 40 per cent would add around £100 million to the annual cost of running our UK retail business.”

She said an independent report commissioned by the Betting and Gaming Council suggested the move could lead to up to 1,470 betting shop closures and 15,900 job losses across the sector.

Ms David said: “These are not theoretical efficiencies in a financial model. They are people losing their jobs and communities losing long-established high-street businesses.”

She said the business was not asking to be insulated from taxation - adding: “Indeed, Entain is one of the UK’s top 20 taxpayers.”

Entain’s rival Evoke, which owns William Hill, has slashed costs to try to offset higher taxes. Evoke said more than a fifth – 278 – of its shops closed in the past year, with around 200 shutting in May alone amid efforts to lower costs.

Meanwhile, betting firms also face greater opposition to opening new stores after Andy Burnham outlined plans last month to give councils more powers to stop betting shops opening in local communities.