Key Takeaways
- Layoffs have spread across the gambling sector.
- Prediction markets are growing rapidly.
- Experts believe more restructuring may be ahead.
Job cuts are accelerating across the online gambling industry as operators face mounting pressure to improve profitability and respond to the rapid rise of prediction markets.
It comes as platforms such as Polymarket and Kalshi are attracting billions of dollars in trading activity and reshaping competitive dynamics.
Industry Layoffs Spread Across Gambling Sector
FanDuel became the latest betting operator to conduct another round of workforce reductions in recent weeks.
Front Office Sports reported that FanDuel cut several hundred positions across functions, including software engineering, customer service, and business development.
The sportsbook’s parent company, Flutter Entertainment, confirmed organizational changes had occurred but did not disclose the number of affected employees.
The reported reductions mark FanDuel’s third round of layoffs in less than a year.
Meanwhile, Penn Entertainment recently eliminated more than 75 jobs within its Penn Interactive division, the publication reported.
The company had more than 23,000 employees globally as of the end of 2025, according to regulatory filings.
Industry observers say the layoffs reflect a shift away from the aggressive hiring that characterized the early years of US sports betting expansion following the 2018 repeal of the federal ban on sports wagering.
“Operators hired aggressively to build apps, acquire users, launch in new states, and bolt on new products,” Panayot Kalinov, senior software developer at Casinoreviews.net, told CCN.
Adding: “Now the pressure is on margins, compliance costs, platform consolidation, and proving that those expensive growth teams can actually generate profitable customers.”
Prediction Markets Emerge As Growing Competitive Threat
The restructuring comes as prediction markets experience extraordinary growth.
According to a Bernstein research report cited by CNBC, prediction market trading volumes are on pace to reach approximately $240 billion in 2026, up about 370% from last year.
Bernstein estimates annual volume could approach $1 trillion by 2030 if current growth rates continue.
Kalshi and Polymarket, the two dominant platforms in the sector, have already generated roughly $60 billion in trading volume so far in 2026, surpassing the $51 billion recorded across the entire prediction market industry in 2025.
While sports-related contracts currently account for the majority of prediction market activity, the sector has been rapidly expanding into contracts on economic and political events.
The growth has not gone unnoticed by traditional gambling operators.
Platforms such as DraftKings and Robinhood have already announced prediction market offerings.
Continued Restructuring Ahead?
Industry experts say prediction markets are only one factor behind the gambling layoffs.
“Prediction markets are not the sole reason sportsbooks are cutting staff, but they are absolutely forcing a strategic rethink,” Kalinov said.
Adding: “They compete for the same consumer attention, especially among younger, trading-minded users who may see event contracts as faster, cheaper or more flexible than traditional sports betting.”
Kalinov also pointed to AI as a main reason for the cuts, stating roles tied to customer acquisition and certain trading functions could face greater pressure as automation expands.
“What we are seeing is not simply cost-cutting; it is a reshaping of the operating model,” Kalinov said.
Adding: “Gambling companies are trying to become leaner, more automated and more defensible against both regulatory pressure and new market entrants.”
He expects further layoffs over the next 6 to 12 months, particularly if prediction markets continue to gain regulatory clarity and consumer adoption.
“The industry is not shrinking,” Kalinov said. “But it is becoming much less forgiving of bloated structures.
Gambling Layoffs Surge, But Prediction Market Bans Spread
The rapid expansion of prediction markets is also attracting increasing scrutiny from regulators worldwide, with a growing number of countries moving to restrict the platforms.
Spain became one of the latest jurisdictions to act after launching disciplinary proceedings against both Polymarket and Kalshi in May.
The move followed similar actions elsewhere.
India, Indonesia, Argentina, Brazil, Portugal, and Hungary have all imposed restrictions or blocks on one or both platforms over the past year.
Meanwhile, several European countries have also tightened enforcement against operators that lack local gambling licenses.
Despite the platforms’ claims that they function as financial markets that aggregate information through trading activity, regulators have largely reached a different conclusion.
Authorities in multiple jurisdictions have argued that products allowing users to stake money on uncertain future events fall within existing gambling laws, regardless of whether they use blockchain technology.
However, recent proposals, such as the one in the US, reflect the sector’s argument that event contracts should be regulated differently from traditional sports betting.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
