In a significant restructuring move, BetMGM has announced it will cut 83 jobs at its headquarters in Jersey City, New Jersey. This decision comes as the company navigates a slowdown in the sports betting market, which has impacted growth and market dynamics across the industry.

The layoffs, effective from May 27, were disclosed in a notice (pdf) filed with the New Jersey Department of Labor at the end of February. BetMGM, a joint venture between Entain and MGM Resorts International, described this step as a cost-saving measure necessary to streamline operations and secure its future in a competitive market.

Struggling to Compete

Despite a strong performance in the online casino sector, BetMGM has struggled to match rivals FanDuel and DraftKings in sports betting market share. Industry experts, like Corey Sharp of PlayNJ.com, cited by Bergen Record, highlight that while BetMGM has successfully leveraged MGM Resorts’ retail customer base for its online casino, it has not seen the same success in sports betting—a sector where DraftKings and FanDuel have capitalized on their established presence in daily fantasy sports.

Industry-Wide Trends and BetMGM’s Position The broader sports betting industry has seen a downturn, with the American Gaming Association reporting a 29% decrease in December’s revenue compared to the previous year. Jane Bokunewicz from Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism notes that the rapid expansion phase of legal sports betting across states has slowed, stabilizing the market as it matures.

Despite these challenges, BetMGM has not been passive. In January, the company reported a significant 35% increase in its monthly winnings, totaling $28 million, positioning it third in New Jersey. This performance reflects BetMGM’s robust capabilities in the online casino domain and its ongoing efforts to adapt to market demands.

A Strategic Shift

Future Outlook and Strategic Adjustments BetMGM’s recent financial statements reflect a strategic adjustment to the shifting dynamics of the gambling industry. With a 7% growth in net revenue in 2024, reaching $2.1 billion and a projected increase to between $2.4 billion and $2.5 billion in 2025, the company remains optimistic about its future. The introduction of the “single account, single wallet” feature in Nevada has further enhanced its customer engagement and retention strategies.

Moreover, the company’s focus on online casinos continues to pay dividends, contributing to a 13% rise in this segment’s revenue. Exclusive licensing deals and partnerships with iconic brands like Family Feud and The Price is Right have enriched BetMGM’s offering, attracting a broader audience.

Navigating Industry Shifts The decision to reduce its workforce, though difficult, is part of BetMGM’s broader strategy to maintain agility and competitiveness in a rapidly evolving market. While this move reflects immediate operational needs, it also underscores the company’s commitment to long-term strategic planning and market leadership, especially in its stronger segments like online gaming.