"The commission declined to comment on staff numbers, confirming only that it was talking to employees “about some changes we are considering” as part of a plan to be more agile in its approach.
But a source with knowledge of the situation said the decision was due to strains on its £19m annual budget, deemed inadequate by the National Audit Office (NAO) in a report published in February.
Gambling addiction experts and MPs reacted with astonishment to staff reductions, given the NAO’s concern that the regulator is not powerful enough to ensure addicts and vulnerable people are properly protected.
Matt Gaskell, the clinical lead for the NHS northern gambling clinics, said: “It further underscores the need for the government to step forward and take definitive legislative action and to strengthen, not weaken, the regulatory framework.”
The NAO, which monitors the effectiveness of public bodies, said in its report that the commission had not adjusted to technological change such as the rise of online and mobile gaming.
The Labour MP Carolyn Harris, who chairs a cross-party group of MPs investigating gambling harm, said:
“Given the abysmal service provided by the commission against a continued onslaught of reprehensible practice among gambling companies, and a woeful report from the NAO, I had expected the Gambling Commission to be beefing up their service in an attempt to justify their existence.
“If they are scaling back it must be assumed they have given up and will be declaring themselves unfit for purpose.”