Bally's Interactive reduces workforce as it braces for future growth

Gambling companies in the United States and North America are adjusting their long-term plans. Whether this is Catena, Better Collective, or now Bally’s Interactive, there has been a notable shift toward cost reduction in order to prioritize future growth and sustainability. This news comes despite a reported strong growth in the second quarter of 2022.

Bally’s has outlined a new restructuring plan which will impact what could be a significant chunk of its workforce. The measure will impact up to 15% of the current Interactive divisionworkforce and will be enacted as per the applicable local law and consultation requirements.

Bally’s expects to foot between $10m and $15m in cash severance costs as part of this plan, but it is equally looking to strengthen its online operations and focus more heavily on specific long-term projects that should allow it to weather the current market crunch.

The company outlined its plans as part of a Form 8-K filing to the US Securities and Exchange Commission. The move is part of the company’s grander ambition to ensure that its Interactive vertical remains profitable and its North American plans – a pivot of its future success.

Before this is accomplished, though, the company may face further expenses linked to its current restructuring endeavor. Lee Fenton, Bally’s Corporation CEO, said that the decision to reduce the workforce was not one that his company made lightly.

Fenton spoke about the opportunities that 2023 presented to companies engaged in both the land-based and digital sectors and argued that those players that acted decisively despite the emotional challenges in doing so, would emerge stronger and fitter for the future.

The workforce reduction will take place over the coming weeks, Fenton explained, with the company making active decisions on how to best adjust its workforce so that it may continue to deliver on strong products. Fenton explained that the company had to brace for the current challenge and establish a stronger footing for what is to follow next.

He reminded employees that his door was open for team members and helping them work through this difficult time, praising the impacted employees as not just colleagues, but friends. The current shift is necessitated by what the company explained were unmet targets.

Fenton hailed the hard work that every single team member had put in the previous year but explained that the company did not achieve everything it had hoped for. He remained optimistic about the future and assured that the difficult times shall pass.

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