Online Gambling Market Shake-Up: Penn Entertainment, DraftKings and Other Firms Cut Jobs and Turn to AI

^{Pictured: Jay Snowden, CEO of Penn Entertainment}

The global online gambling industry is facing a wave of job cuts. According to Front Office Sports, layoffs were reported over the past week at several companies in the sector, including Penn Entertainment, Gambling.com Group and LSports.

The cuts come as the market undergoes restructuring after several years of rapid growth.

Companies are reducing costs, expanding their use of artificial intelligence and facing stronger competition, including from prediction market platforms.

U.S. gaming company Penn Entertainment has cut more than 75 jobs at Penn Interactive, the division responsible for its online business, including theScore Bet sportsbook and online casino operations. The unit had more than 500 employees before the layoffs.

Gambling.com Group has also announced plans to cut 25% of its workforce. The Jersey-registered company provides marketing and information services to the gambling industry. In total, about 150 employees will be affected.

The company’s portfolio includes Bookies.com, a sportsbook and betting information site; RotoWire, a sports data service; and Casinos.com, an online casino information portal.

Gambling.com Group co-founder Kevin McCrystle said the company had recently expanded its use of AI and now applies the technology in marketing, sales and software development.

According to McCrystle, about 80% of the company’s new software code is generated using AI. The restructuring is expected to save about $13 million a year.

Israel-based LSports, which supplies sports data to the betting industry, has also cut jobs. The company laid off 39 of its roughly 240 employees.

Earlier in 2026, layoffs were also reported at U.S. gaming companies Underdog, PrizePicks and DraftKings.