Gambling Firms Trim Staff as AI Drives Cost Cuts

The online betting sector is tightening belts after a year of rapid expansion. Companies are turning to artificial intelligence to streamline operations while revenue growth eases.

Penn Entertainment shed more than 75 roles in its Penn Interactive unit, which includes theScore Bet and its online casino and social gaming platforms. The division previously employed over 500 staff, suggesting the layoffs affect around 15% of that segment.

Gambling.com Group, operating under the GDC brand, announced a 25% workforce reduction—about 150 employees out of a 600‑person headcount. The cuts span marketing, sales, development and support functions. CEO‑designate Kevin McCrystle said the firm is “resetting our team structures… to fit an AI‑first world,” with AI now generating 80% of new code and projected annual savings of $13 million.

Israeli data provider LSports cut 39 jobs, roughly 16% of its 240‑employee roster. The company supplies sports‑betting data to operators such as Entain and DraftKings.

These layoffs follow similar moves at Underdog, PrizePicks and DraftKings earlier in the year, and a recent CEO exit at FanDuel’s parent, Flutter Entertainment, whose shares have fallen 56% year‑to‑date. Analysts attribute the trend to a slowdown in betting growth after the 2018 U.S. Supreme Court decision that lifted the federal sports‑betting ban, combined with rising competition from prediction‑market platforms.

The immediate impact is a leaner cost base for the affected firms. By leveraging AI for coding, marketing and data analysis, they aim to maintain profitability despite weaker revenue streams. Share prices reflect market skepticism: GDC’s stock dropped more than 41% after announcing its cuts, while Penn’s shares rose modestly on earnings news but remain under pressure.

What to watch next: quarterly earnings reports from other major operators will reveal whether AI‑driven efficiencies translate into sustained profit margins, and whether further staff reductions become a norm across the industry.