Entain to reduce workforce in Australia

Entain, one of the world’s leading gaming and betting giants, is reportedly slashing its workforce in Australia, the Australian Financial Report and various other media outlets said citing anonymous sources close to the matter.

The exact number of the job reduction is not entirely known, with sources reporting different numbers, from about 50 to 80 local jobs that may be gone soon. Entain has confirmed that the company has seen the need to tweak its structure in Australia, with a representative stating for the media that the company has had to adjust its business, which has resulted in "a small number of redundancies" across several divisions.

This means that the company’s customer service, marketing, and digital technology arms have been most likely impacted by the decision. Entain could be under pressure to reevaluate its presence in Australia in light of an investigation launched by the Australian Transaction Reports and Analysis Centre into alleged breaches of counter-terrorism financing requirements.

The investigation was launched in September last year, but it may take up to two years to complete. Should Entain be found in breach, the company could face a fine of up to $22m. The threat of an incoming penalty is not all that has motivated Entain to reevaluate its local presence, however.

Australia is shifting towards much tougher gambling laws as well, which include a reduced mandate for advertisement as well as the rollout of tighter consumer protection measures.

Cost reduction across the board has also been necessitated not least because Entain is in a similar pickle in the United Kingdom where the company is being investigated over breaches of one of its Turkish subsidiaries.

The company confirmed earlier this month that it had put aside £585m ($744.5m) for a potential settlement with HM Revenue & Customs. Another factor has been the reduction in discretionary spending by consumers caused by inflation, which has presented the local business in Australia with further challenges.

Entain has been trying to build its profile in Australia continuously. Ladbrokes, its local brand, launched online TV channels in 2022 in a bid to drive stronger engagement with local audiences, hiring a number of professionals to help with social media engagement.

It’s not all bad news from Oceania either as Entain also won the rights to manage New Zealand’s sports betting monopoly, which has increased the company’s total headcount. However, the news from Australia may not be that good after all.

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