The U.S. commercial gaming industry is experiencing significant shifts, with two prominent gambling companies recently announcing job cuts as part of their restructuring efforts.
In its Q1 2026 earnings report, Gambling.com Group (GDC Group) revealed plans for a strategic restructuring that will eliminate 25% of its workforce, translating to around 150 positions. Stock Analysis indicates that GDC Group had approximately 599 employees in December 2025, down from 500 in September 2024. These layoffs are anticipated to result in annual savings of $13 million.
GDC Group's revenue for Q1 2026 was reported at $40.4 million, a slight decrease from $40.6 million for the same timeframe in the previous year. CEO Kevin McCrystle stated that these revenue results were "in line with our expectations," despite the company suffering a net loss of $1.1 million for the quarter, compared to net income of $11.2 million in Q1 2025.
The lackluster results prompted the company to re-evaluate its workforce, with McCrystle emphasizing the integration of artificial intelligence into their operations. "We are resetting our team structure, roles, and processes to fit an AI-first world," he explained during the earnings call. This shift aims to streamline the organization, reducing management layers, and refocusing efforts on automations and product development that enhance efficiency and speed.
GDC Group also revised its full-year revenue expectations, now projecting between $165 million and $170 million for 2026, a decrease from an earlier estimate of $170 million to $180 million. Since May 2025, the company’s shares have plummeted more than 55%, reaching around $2.50 per share.
In another development, PENN Entertainment has also executed job cuts, reportedly affecting over 75 employees within its Interactive division, which oversees theScore Bet sports betting and iGaming operations.
PENN had acquired theScore Bet brand in 2021 for approximately $2 billion. While the company has not provided specific reasons for these layoffs, they come despite favorable quarterly financial results. In Q1 2026, PENN recorded revenue of $1.7 billion, an increase from $1.6 billion during the same period last year. The adjusted EBITDA for this quarter was $265 million, compared to $173 million in Q1 2025. However, PENN posted a net loss of $2.8 million, contrasting with a net income of $111.5 million in Q1 2025.
This round of layoffs adds to a series of staffing reductions by PENN over the past year. In June, more than 75 employees were laid off from theScore, impacting the brand's content and sales teams and resulting in the dissolution of about half of its editorial newsroom. These organizational changes followed theScore's launch of its standalone online casino app in Ontario. Just four months afterward, PENN significantly reduced its esports team.
Earlier this year, PENN underwent a restructuring that resulted in the elimination of two senior executive positions, including that of the chief information officer and vice president of operations. This restructuring took place shortly after PENN ended its 10-year, $2 billion agreement with ESPN concerning the operation of ESPN Bet prematurely.
SBC Americas has sought further comments from both GDC Group and PENN regarding their layoffs.
