bet365 plans to reduce its workforce across its international offices this year. The decision is another indication of the challenging economic environment facing UK gambling operators.
However, the company’s workforce reduction appears to be driven by more than just the increase in Remote Gaming Duty, which has previously faced significant criticism and placed considerable pressure on the sector.
A bet365 spokesperson told The Sun that the company plans to cut 340 jobs over the coming months. The decision has been attributed to challenging market conditions, as well as changes to the regulatory and tax landscape.
The redundancies will begin with a voluntary departure programme. According to the publication, 300 positions will be cut at bet365’s headquarters in Stoke-on-Trent, with the remaining roles affected at the company’s offices in Malta and Gibraltar.
A bet365 spokesperson added: “As an international business, we continually review and assess our operations to ensure the long-term future of the business.
“We are currently operating in a highly competitive environment and facing increased regulatory and tax-related costs. As a result, we are restructuring some of our locations this year.
“Ultimately, this will result in a reduction of approximately 340 roles across our European hubs, equivalent to around three per cent of our workforce. We are committed to minimising the impact on our people and are exploring all avenues to reduce the number of redundancies. As a first step, we are planning a programme of voluntary redundancies.
“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.”
bet365 Operates Under Growing Economic Pressure
In April, the Remote Gaming Duty rate in the UK online gaming sector increased from 21% to 40%. In response to the higher tax burden, a number of operators have begun cutting marketing spending, withdrawing from the UK and other markets, closing land-based venues and reducing their workforces.
Further tax changes are expected from April next year. In particular, a general betting duty of 25% will be introduced for remote betting. The exception will be bets on UK horseracing, for which the current 15% rate will remain unchanged.
The Betting and Gaming Council (BGC) has criticised the job cuts at bet365. The organisation stressed that it had warned the government in advance about the potential negative consequences of increasing Remote Gaming Duty.
However, tax changes are only one of the factors behind bet365’s decision. Intense market competition and regulatory changes may also have played a significant role.
Competitive pressure can stem from various factors, ranging from new market entrants to competitors offering more attractive products and services.
The rapid development of artificial intelligence is also having an impact. Over the past few years, AI has significantly changed how operators conduct their businesses, enabling them to automate processes, improve efficiency and streamline services.
Companies are also facing additional pressure from corporation tax and National Insurance contributions. These costs continue to weigh on businesses across different sectors and are likely to have been another factor considered by bet365 as part of its operational review.
According to The Sentinel, Stoke-on-Trent Central MP Gareth Snell believes the job cuts at bet365 should serve as a “warning to regulators and the Treasury”.
He said the redundancies concern well-paid jobs in a region that needs investment. He also highlighted that bet365 is a successful international company that grew from a business established in Stoke-on-Trent.
Snell stressed that government policies encouraging more people to turn to the unregulated black market also have a negative impact on licensed operators. As a result, regulated businesses such as bet365 face additional challenges, with job losses being one of the consequences.
In addition, the UK government is due to present its new Budget in October. As ministers look for additional sources of revenue, the UK business sector is expected to face further tax pressure, potentially including changes to corporation tax.
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