Bally’s to cut interactive division workforce by up to 15%

Bally’s is planning on cutting down its interactive division workforce by up to 15%, according to a filing with the US SEC.
Image: BGStock72/Shutterstock

Bally’s is planning on cutting down its interactive division workforce by up to 15%, according to a filing with the US Securities and Exchange Commission (SEC).

Filed with the SEC on Wednesday, Bally’s announced its plan to restructure its interactive business to reduce “operating costs and continue the company’s commitment to achieving profitable operations in its North American interactive segment.”

The reduction of its interactive employee workforce by up to 15% will be “subject to local law and consultation requirements in certain countries, as well as the company’s business needs.”

As a result, Bally’s expects the restructuring will create severance costs between $10m and $15m during the first quarter of 2023.

The company’s CEO, Lee Fenton, sent a letter to employees addressing the situation and explaining why the interactive division cuts had to be made.

Fenton said: “2023 brings with it many opportunities to continue to drive our business forwards. We have an amazing company with a strong and resilient business model, which puts us in a great place to do well in the toughest of conditions.

“However, we always need to be acutely aware of the macro-economic conditions and adjust accordingly to come through what is a challenging environment in the best possible shape. 

“Companies who take tough but decisive steps to effectively manage costs will be stronger and fitter for the future. I am committed to ensuring that Bally’s is one of those that is best placed to flourish in the long term.

“With this in mind, we’ve made the difficult decision to reduce our Interactive employees and contractor workforce by up to 15%, over the coming weeks.”

Fenton noted that while Bally’s mature business continues to grow, it faces “macro uncertainties,” adding that while North America remains an “investment market,” it will take some for these assets to “come to fruition, so we need to manage our cost base appropriately.”

“The pandemic boosted our business and we continued to hire at full pelt. I now can see that we may have over hired in some areas, and I take full responsibility for that,” stated the CEO.

Back in November, Bally’s declared that it would be evaluating its North American interactive division after the vertical reported a loss of $22.7m in Q3. At the time, Fenton stated that the company would be refocusing its efforts on faster paths toward profitability.

This evaluation came a month after the company had completed its acquisition of UK-based online gaming operator Gamesys to help build its interactive offerings in North America.

Bally’s North American interactive division products include the online sportsbook Bally Bet, the online casino platform Bally Casino, and the daily fantasy sports platform Monkey Knife Fight.

Bally Bet is currently live in seven jurisdictions – Arizona, Colorado, Indiana, Iowa, New York, Ontario, and Virginia – while Bally Casino is operational in New Jersey and Ontario. Monkey Knife Fight is live in 38 states.