Online gambling layoffs surge due to AI and slowing growth

[The Buzz]

The online gambling industry is facing a wave of layoffs as companies shift toward profitability, adopt AI, and respond to slowing growth and rising competition from prediction markets.

Penn Entertainment laid off more than 75 employees in its interactive division despite reporting solid quarterly revenue, while Gambling.com Group cut roughly 25% of its workforce and openly stated it is restructuring around an “AI-first” model, with 80% of new code now generated by AI.

Sports data company LSports also reduced staff, adding to earlier cuts across major betting firms like DraftKings and PrizePicks.

From Front Office Sports:

The cuts follow layoffs earlier this year at Underdog, PrizePicks, and DraftKings. FanDuel, meanwhile, just pushed out its CEO amid disappointing financial performance. Shares of FanDuel’s parent, Flutter Entertainment, are down 56% year to date.

Analysts say the layoffs reflect a broader shift hitting the online gambling industry as growth slows, investors demand profitability, and companies race to adapt to both AI and new competitive threats like prediction markets.

Jordan Bender, equity research analyst at Citizens, tells FOS the industry has reached a point where “growth is starting to materially slow.” There are multiple reasons for that, he says, including a natural slowing of growth now that it’s been eight years since the U.S. Supreme Court decision that struck down the federal ban on sports betting, as well as the threat of prediction markets.

“These companies were built and scaled for an environment where revenue was expanding, yet slowing growth is leaving fat on the cost structures of these businesses,” Bender says.

Barry Jonas, senior gaming analyst at Truist Securities, says gambling stocks have come under pressure, forcing companies to improve earnings outlooks and cut costs proactively. At the same time, firms are eager to embrace AI tools to improve efficiency and avoid appearing technologically behind competitors.

“There is a real risk here that companies need to get ahead of,” Jonas says. “That means not fighting AI, but using it.”

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[golfbettingsystem]

This same scenario will be playing out across a whole host of industries as firms reduce costs using AI to stay competitive.

There's a lot of doom-mongering out there about the impact of AI on the jobs market in general, however there's no smoke without fire and we're bound to see some kind of AI jobs impact across the board.

[hatario]

I used to edit/publish for a company that had about 150 writers. Once the AI came, they were all gone in a couple of months.

[Elijul]

The impact of AI is becoming visible across many industries, and iGaming is no exception.

In my view, AI will reduce the need for some repetitive tasks, particularly in content production, data analysis, and software development. At the same time, it raises the standard for what remains valuable. Original research, strong relationships, compliance expertise, and effective marketing strategy are still difficult to automate.

For affiliates, this likely means increased competition and lower barriers to entry, but also greater pressure to differentiate through trust, quality, and operational efficiency.

The companies that adapt responsibly and continue to focus on long-term value should be in a stronger position, even as the industry becomes more automated.

[ocreditor]

Not surprising. I have a feeling this trend will only keep growing as AI continues to plant its roots across more industries and become part of almost everything...

[Karri]

The real change seems to be going on in search rather than in content & SEO. AI still produces garbage, it just doesn't matter that much because Google has dropped the ball.

[NoDepositCasinos]

This same scenario will be playing out across a whole host of industries as firms reduce costs using AI to stay competitive.

There's a lot of doom-mongering out there about the impact of AI on the jobs market in general, however there's no smoke without fire and we're bound to see some kind of AI jobs impact across the board.

Sadly, I agree. Here in Latin America, at least from what I’m seeing anecdotally, the shift is happening quite indiscriminately, even in roles where companies would probably benefit from keeping experienced human staff involved.

I get the business logic. AI works 24/7, doesn’t complain, scales quickly, and costs a fraction of a full-time employee, but at the same time, I wonder if there’s a line that needs to be drawn.

[Cash Bonus]

This is becoming the trend, now since AI has been gradually taking over and becoming more advanced.

[golfbettingsystem]

Sadly, I agree. Here in Latin America, at least from what I’m seeing anecdotally, the shift is happening quite indiscriminately, even in roles where companies would probably benefit from keeping experienced human staff involved.

I get the business logic. AI works 24/7, doesn’t complain, scales quickly, and costs a fraction of a full-time employee, but at the same time, I wonder if there’s a line that needs to be drawn.

There's some consensus that repetitive and entry-level jobs will be the most impacted - at least initially. The legal sector is one that could see a lot of processes automated - I'm friends with a solictor who said that they are increasingly using AI for paperwork tasks and as such won't replace staff when they leave unless it's absolutely essential as they can readily plug the gap with AI.

[GlobalPokerSites]

AI is only going to get better. For competitive industry's like iGaming it will continue to have a huge impact.

[Pokerface]

AI is affecting all industries and those that adopt it that were not efficient with their old practices will feel it worse. So many operators, and affiliates, have been using old, outdated processes and tools and as they might be finally adopting AI there will be layoffs from those performing redundant tasks.

Even in the space of analytics, AI will be replacing tools such as Tableau, PowerBI, etc.

[wonderpunter]

lot's of layoffs but also lot's of new entreprenuers that no longer need massive teams and hige funds to start a biz. I think we will see a shift in both areas. more layoffs but also more small biz types popping up to compensate.

[Karri]

lot's of layoffs but also lot's of new entreprenuers that no longer need massive teams and hige funds to start a biz. I think we will see a shift in both areas. more layoffs but also more small biz types popping up to compensate.

...wait until the AI companies decide that they actually need profits. Even the big companies are already complaining about their AI budgets ballooning.

[livebetcom]

Let's see for how long this trend will continue, the next months will be very interesting.

[wonderpunter]

Let's see for how long this trend will continue, the next months will be very interesting.

Ultimately AI will take a huge percentage of the job market then the mass migration of computer engineers will take another chunk. Then people will need to work until 75 years old for a pension that doesnt exist in jobs that are not available. has the future ever looked so bleak?

[golfbettingsystem]

Ultimately AI will take a huge percentage of the job market then the mass migration of computer engineers will take another chunk. Then people will need to work until 75 years old for a pension that doesnt exist in jobs that are not available. has the future ever looked so bleak?

2 of my kids are at University and I'm more than a little concerned at what sort of jobs they will have available to them when they graduate. I'm hearing on parents' groups of recent graduates with strong degrees submitting dozens upon dozens of job applications with little or no reply which must be disheartening. I've told mine to enjoy their time at Uni first and foremost - at this rate they'll never have to pay their loans back if there's no jobs!

[wonderpunter]

2 of my kids are at University and I'm more than a little concerned at what sort of jobs they will have available to them when they graduate. I'm hearing on parents' groups of recent graduates with strong degrees submitting dozens upon dozens of job applications with little or no reply which must be disheartening. I've told mine to enjoy their time at Uni first and foremost - at this rate they'll never have to pay their loans back if there's no jobs!

I understand, My youngest is a pure tech nerd and genius so he will have no problem finding his way int his new world. The eldest is more practical and a big car lover, as we know Internal combustion cars are the past but there is a call for those working on electric motors, software etc. I feel the biggest losers of all of this will be females. AI will be able to handle many of those jobs accountancy, law, even pyscology I think in 3 years we will really start to feel it.

[fonzi1022]

Ai is taking over almost all aspect of this industry from content to design/coding.

[golfbettingsystem]

I understand, My youngest is a pure tech nerd and genius so he will have no problem finding his way int his new world.

It's interesting listening to the likes of Stephen Bartlett on his podcasts talking about how his own recruitment is leaning ever more towards people with tech knowledge and specifically AI experience/understanding/curiosity - the curriculums won't be able to keep up of course, but it's almost as if there needs to be AI modules included wherever possible in degree courses etc to at least give the kids a chance.

[NoDepositCasinos]

It's interesting listening to the likes of Stephen Bartlett on his podcasts talking about how his own recruitment is leaning ever more towards people with tech knowledge and specifically AI experience/understanding/curiosity - the curriculums won't be able to keep up of course, but it's almost as if there needs to be AI modules included wherever possible in degree courses etc to at least give the kids a chance.

Not just curricula, but people too. There is too much going on to stay even reasonably up to date with everything, and I can’t imagine how to prepare younger generations for a world we won’t know what it will look like in a couple of years, nor how adults without much wealth are going to support themselves if they are seeing their roles displaced by AI. And it is not only about the money (though it is a very important factor), but also about your place in the world.