The U.S. commercial gaming industry is undergoing more changes, with two major gambling-related companies recently restructuring their organizations through job cuts.
During its Q1 2026 earnings, Gambling.com Group (GDC Group) announced a strategic restructuring that will reduce its workforce by 25%, equating to approximately 150 employees. According to data provided by Stock Analysis, GDC Group had a workforce of roughly 599 employees in December 2025. In September 2024, the company housed 500 employees.
The layoffs are expected to provide GDC Group with an annualized savings of $13m.
Why is GDC Group cutting employees?
GDC Group reported $40.4m in revenue in Q1 2026, down from $40.6 million for the same period last year. According to GDC Group CEO Kevin McCrystle, the revenue results were “in line with our expectations.” The company also posted a net loss of $1.1m during the quarter. By comparison, the company reported a net income of $11.2m in Q1 2025.
GDC Group reported lackluster first-quarter results, but the company attributed its workforce changes to the integration of AI into its operations.
“We are resetting our team structure, roles, and processes to fit an AI-first world,” said McCrystle during a Q1 earnings call. “That means embracing context layers, skills and, agents across the company. The result is a flatter organization, fewer management layers, and everyone from senior leadership down focused on building automations, products, and go-to-market campaigns that compress timelines and drive efficient growth.”
GDC Group lowered its full-year guidance amid its latest earnings results, with the company expecting revenue to range between $165m and $170m in 2026. The company’s previous guidance projected full-year revenue of between $170m and $180m. Shares of GDC Group have fallen by more than 55% to around $2.50 since May 2025.
SBC Americas reached out to GDC Group for additional comment on the layoffs.
More changes for PENN Entertainment
PENN Entertainment also underwent a round of job cuts.
According to a Front Office Sports report, PENN parted ways with more than 75 employees in its Interactive division. The business segment operates theScore Bet sports betting and iGaming brand and previously operated the now-shuttered ESPN Bet.
PENN acquired theScore Bet brand in 2021 in a deal valued at roughly $2bn.
PENN has not disclosed its exact reasoning behind the job cuts amid favorable quarterly financial results for the gaming giant. In Q1 2026, PENN generated $1.7bn in revenue, up from $1.6bn for the same period last year. The company’s adjusted EBITDA during the quarter closed at $265m. By comparison, its adjusted EBITDA in Q1 2025 was $173m. PENN posted a net loss of $2.8m in Q1, compared to a net income of $111.5m in Q1 2025.
The job cuts add to a series of layoffs by PENN over the past year. Last June, PENN laid off more than 75 employees at theScore. The layoffs impacted the brand’s content and sales teams, with roughly half of its editorial newsroom dissolved.
The organizational changes were made after theScore launched its standalone online casino app for its operations in Ontario. Four months later, PENN cut the majority of its positions in theScore’s esports team, sources confirmed to Canadian Gaming Business.
PENN underwent another restructuring process in January that included the elimination of two senior executive positions.
The company eliminated its chief information officer and vice president of operations roles just two months after ending its 10-year, $2bn deal early with ESPN to operate ESPN Bet.
SBC Americas reached out to PENN for comment on its recent round of layoffs.
