Sports Betting Companies Reduce Workforce as Industry Growth Slows

(AsiaGameHub) –   The global sports-betting and online-gambling sector is experiencing a wave of layoffs as companies respond to mounting financial pressure, rapid technological advancements, and intense competition. Several major operators and service providers have reduced their workforces in recent days, reflecting a broader strategic shift across the industry.

Penn’s Online Betting Unit Faces Workforce Reductions Amid Efficiency-Focused Strategy Shift

Penn Entertainment has recently laid off more than 70 employees within its interactive division, which manages digital operations such as online betting and casino platforms like theScore Bet. These cuts follow the company’s release of strong first-quarter revenue results, signaling a strategic pivot from expansion toward profitability and operational efficiency, according to Front Office Sports.

This restructuring follows the termination of Penn’s partnership with ESPN, an arrangement originally intended to bolster its position in the U.S. betting market. Since then, the company has refocused on Canada—particularly Ontario—and is preparing for future growth in Alberta, though its digital division remains unstable. The job losses affected multiple areas of the organization, including several senior positions, sources indicate.

Gambling.com Cuts Staff Due to Automation in Core Operations

In parallel developments, Gambling.com Group announced a significant reduction in its workforce, laying off approximately one-quarter of its employees. The company, which offers marketing and data services to betting operators, reported that revenue remained roughly consistent with the previous year. Leadership stated that performance met internal forecasts but emphasized the need for structural changes.

A key driver behind this move is the company’s increasing reliance on artificial intelligence. AI now plays a central role across various functions—from software development to marketing—as executives explained. Much of the coding is reportedly handled by automated systems, enabling smaller teams and lower operational costs. The restructuring is expected to generate substantial annual savings.

Betting Industry Layoffs Expand as Growth Slows and Spending Becomes More Conservative

Elsewhere, sports data supplier LSports has also cut staff numbers, with dozens of employees departing the business. As a provider of data to leading betting platforms, these reductions highlight how widespread the trend has become.

The layoffs follow similar moves by other prominent industry players in recent months, including DraftKings, PrizePicks, and Underdog. Analysts note that the rapid expansion following U.S. sports betting legalization is beginning to decelerate. With growth slowing, companies are compelled to reassess expenditures and streamline operations.

Meanwhile, emerging alternatives such as prediction markets are drawing attention away from traditional sportsbooks, intensifying pressure on operators to adapt swiftly alongside growing investor expectations for improved financial outcomes.

Experts maintain that adopting new technologies like AI is no longer optional but essential for survival. Firms that fail to evolve risk falling behind in an increasingly competitive and technology-driven landscape.