Coolbet Plans Layoffs for Over 130 Employees at Tallinn HQ

Estonian online gambling operator Coolbet has notified the country’s Unemployment Insurance Fund (Töötukassa) that it might lay off over 130 employees at its Tallinn headquarters. This decision stems from a restructuring initiative at VG Estonia OÜ, a component of the Coolbet group.

What Happened

Coolbet has initiated a collective redundancy consultation process following its announcement of restructuring at VG Estonia OÜ, which is part of the broader Coolbet group, according to GamblingNews. The company has informed Töötukassa, Estonia’s Unemployment Insurance Fund, about the potential redundancies affecting over 130 staff members at its Tallinn headquarters. The precise number of affected positions will be finalized upon the conclusion of this consultation process.

Tomas Graham, Coolbet’s Chief Operating Officer, stated that the restructuring is a necessary response to evolving business requirements and market conditions. This decision was influenced by several factors, including ongoing business challenges, underperformance in the B2B segment, and increasing regulatory and tax pressures across various markets, as reported by GamblingNews. Graham emphasized that the restructuring aims to ensure Coolbet’s long-term sustainability and competitiveness, while also committing to a responsible and respectful handling of the process for employees.

Sources familiar with the restructuring indicate that the majority of the roles at risk are within development, IT, and B2B functions. Additionally, some other service areas, including customer support, are expected to see an impact. Graham clarified in an interview for NEXT.io that the restructuring aligns with the strategic direction and long-term priorities of the broader group, following the acquisition of Coolbet’s parent company, GAN, by Japanese group Sega Sammy last year. He explained that these operational adjustments are vital for the company to adapt to current business realities and the dynamic market environment.

Key Details

• Coolbet has notified Estonia’s Unemployment Insurance Fund about potential layoffs impacting over 130 employees at its Tallinn headquarters, as reported by GamblingNews.
• The restructuring is driven by evolving business needs, market conditions, business challenges, weaker B2B performance, and increasing regulatory and tax pressures, according to Coolbet COO Tomas Graham.
• Affected positions are primarily in development, IT, and B2B, with some impact on customer support and other service functions, sources familiar with the restructuring stated.
• VG Estonia OÜ employed over 300 individuals at the end of the third quarter of the current year, indicating that nearly half of its Tallinn workforce could be made redundant, according to GamblingNews.

Why It Matters

The restructuring at Coolbet’s Tallinn headquarters underscores the pressures faced by iGaming operators in adapting to a dynamic regulatory and market landscape. The stated reasons for the layoffs, business challenges, underperformance in the B2B segment, and increasing regulatory and tax burdens, highlight systemic issues impacting even established online gambling firms. This move reflects a broader industry trend where companies optimize operations to maintain long-term viability and competitiveness in a rapidly evolving sector, as detailed by GamblingNews.