Gambling.com, Penn cut jobs as AI and prediction markets rise

Gambling.com Group and Penn Entertainment announced layoffs this week as both companies increase automation and face competition from regulated prediction markets that offer event contracts similar to sportsbook products.

Gambling.com cut about 150 employees, roughly 25% of its workforce, alongside first-quarter results. The company reported Q1 revenue of $40.4 million and a $1.2 million loss. Incoming CEO Kevin McCrystle told analysts “AI now generates about 80% of new engineering code,” and the company expects roughly $13 million in annualized savings from the AI-led restructuring. Gambling.com lowered its 2026 revenue outlook to $165 million–$170 million and its shares fell more than 45% after the announcement.

Penn Entertainment reduced more than 75 roles in its Interactive division, affecting teams at theScore Bet, online casino and social gaming units. The cuts build on a January restructuring that centralized technology under Aaron LaBerge and removed two senior executive positions. Penn reported roughly $1.4 billion in first-quarter revenue. The company has not entered event-contract prediction markets, citing regulatory uncertainty.

CFTC-supervised platforms including Polymarket and Kalshi have processed about $150 billion in combined lifetime volume. Kalshi reported $14.8 billion in trading volume in April. These platforms now offer player-prop, spread and live-event contracts that compete with traditional sportsbook products. DraftKings has acquired a CFTC-licensed exchange and formed a clearing partnership with Polymarket.

Industry groups including the American Gaming Association and the Indian Gaming Association have asked Congress to include language in the pending Clarity Act to prevent prediction-market platforms from offering nationwide sports betting and casino-style wagering.

Regulatory decisions at the state and federal level are ongoing as lawmakers and agencies consider how to classify and oversee event contracts.