Entain, the FTSE 100 owner of Ladbrokes, Coral and BetMGM, has begun consulting on cutting 400 jobs from its customer care division, weeks after reporting better-than-expected first-half profits. The move highlights the pressure gambling firms are under despite solid financial results, as the sector braces for a possible increase to machine games duty in the chancellor's autumn budget. Chief executive Stella David said the changes were needed to keep the business "competitive, financially resilient" amid a "challenging operating environment", adding that support would be offered to affected staff.

The cuts would remove roughly one in five of Entain's 2,000 customer care roles and come despite underlying operating profit of £479m for the six months to June, only 2% below the previous year. Entain has partly blamed the decision on higher UK taxes, with chancellor John Healey reportedly considering doubling machine games duty from 20% to 40%, a change David has warned could cost £100m and trigger 1,470 betting shop closures and 15,900 job losses. The wider sector debate ties into calls, backed by Andy Burnham, for gambling firms to be taxed more to help fund scrapping the two-child benefit cap. Entain's shares, down about 36% this year, will drop out of the FTSE 100 into the FTSE 250 from 21 September.