BetMGM Slashes 83 Jobs in Jersey City
BetMGM is cutting 83 jobs at its Jersey City headquarters. The layoffs, set for May 27, 2025, come as the sports betting industry hits a speed bump. Facing stiff competition and a push for profitability, the company aims to streamline operations.
Why the Cuts?
The sports betting boom is cooling. After a surge tied to legalization and pandemic-driven interest, growth has tapered off. Meanwhile, rivals like FanDuel and DraftKings dominate. Both leveraged their daily fantasy sports roots to pull ahead. Now, Fanatics Sportsbook is gaining ground fast. As a result, BetMGM’s No. 3 spot feels less secure.
Profitability is another driver. In 2024, BetMGM posted a $244 million EBITDA loss despite revenue gains. Cutting jobs aims to trim costs. For instance, the firm wants to shore up its bottom line by 2025.
Strategic Pivot
BetMGM is rethinking its game plan. The company excels in online casinos, holding a strong market share. However, sports betting lags behind leaders. To stay viable, it’s focusing on key areas. Reducing staff is part of this shift. Additionally, BetMGM eyes long-term growth in iGaming and sports betting.
Competition isn’t the only pressure. Proposed tax hikes in New Jersey loom large. BetMGM has urged customers to lobby lawmakers against a 25% tax increase on betting and casino revenue. If passed, this could squeeze margins further. Thus, the layoffs reflect a broader effort to brace for challenges.
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