Gambling.com Group axed a quarter of its workforce and slashed its revenue outlook after posting a first-quarter loss, while incoming CEO Kevin McCrystle said artificial intelligence now writes 80% of the company's new engineering code. The cuts — roughly 150 jobs — are part of a plan to save $13 million a year through automation. Shares plunged more than 45% after the announcement.
AI-driven cuts at Gambling.com
The company reported a $1.2 million loss for Q1 on flat revenue of $40.4 million. McCrystle, who is set to take over as CEO, said AI now generates the bulk of new code, enabling the targeted savings. Gambling.com lowered its full-year 2026 revenue guidance to between $165 million and $170 million, a sign that the cost reductions are meant to offset stagnant top-line growth.
Penn Entertainment’s quiet restructuring
Penn Entertainment also trimmed its head count, cutting more than 75 roles from Penn Interactive. The reductions hit theScore Bet, online casino, and social gaming units, building on a broader corporate restructuring that began in January. Penn reported first-quarter revenue of roughly $1.4 billion. Unlike rivals, the company has kept out of event contracts, citing regulatory uncertainty.
Event contracts surge, regulators circle
While traditional operators cut costs, CFTC-supervised prediction platforms have exploded in volume. Polymarket and Kalshi together have processed about $150 billion in lifetime trades, with sports contracts driving much of the recent activity. Kalshi reported $14.8 billion in monthly trading volume for April, overtaking Polymarket for the first time in eight months. DraftKings has moved into the space, acquiring a CFTC-licensed exchange and partnering with Polymarket on clearing.
Event contract platforms now compete directly with sportsbooks on player props, spreads, and live markets. The American Gaming Association is pushing Congress to classify prediction contracts as gambling, and lawmakers are considering the Clarity Act to draw a clearer line. Penn’s decision to sit out the trend suggests that even as volumes hit new records, regulatory caution still rules for some operators.
Whether the Clarity Act or industry lobbying will settle the boundary between gambling and prediction remains an open question — one that will shape how both traditional operators and platforms like Kalshi evolve.
