Entain, the gambling giant that owns Ladbrokes, is set to pay back £44million of holiday pay demanded during the pandemic but keep £57.5million.
Rep. Carolyn Harris called it “absolutely disgraceful” that despite rising profits, Entain is not paying it all back.
The group posted pre-tax profit of £393m in 2021, up 125% year-on-year.
The furlough scheme helped protect 14,000 jobs and a “more secure medium-term perspective” enabled the partial repayment.
Entain has around 3,000 betting shops from British brands Ladbrokes or Coral – which have had to close for much of 2020 and 2021 because of the coronavirus restrictions.
However, bettors didn’t stop betting, they just went online. Entain’s online business grew rapidly, helping to increase the group’s revenue by 8% over the past year.
In response to a BBC News story in January, MPs called on Entain to pay back the money it received under the furlough scheme, with former Conservative leader Sir Iain Duncan Smith saying the company should “send the money to the UK immediately.” give back to taxpayers”.
Entain has previously said the situation is “under review”. On Thursday it announced it would return the £44m it was asking for in 2021 but keep the £57.5m it was asking for in 2020.
Labor MP Carolyn Harris, Chair of the All-Party Parliamentary Group on Gambling-Related Harm, said; “Given that this company made hundreds of millions of pounds in profit directly from players who lost money last year, it’s absolutely disgraceful that they also took taxpayers and didn’t pay back the full holiday amount.”
Entain said in a statement: “The scheme was a sensible and highly welcomed policy intervention that has helped us, as one of the largest retailers in the country, sustain the livelihoods of more than 14,000 retail colleagues on full pay.
“We have been monitoring the situation since we first started using the program and are pleased to be able to return these funds.”
One of Entain’s rivals, William Hill, was also forced to close its betting shops but announced the £24.5m furlough.
Bookmaker Betfred has claimed at least £46.6million from furlough during the pandemic despite posting a £205million profit in its most recent accounts.
The BBC have reached out to Betfred for comment on Entain’s move.
In January, a spokesman for the company said: “Thanks to government job retention [furlough] We have not had to make a single redundancy due to the pandemic and will continue to invest in our High Street businesses.”
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