BetMGM plans to lay off 83 as U.S. sportsbook growth stalls

March 5, 2025

BetMGM plans to lay off 83 as U.S. sportsbook growth stalls

BetMGM, one of the United States’ largest online gambling companies, is set to lay off 83 employees at its headquarters in Jersey City, New Jersey. These job cuts, scheduled to take effect on 27 May 2025, were revealed in a public notice filed with the New Jersey Department of Labour in late February.

The company has not yet provided any official statement regarding the decision. However, recent statistics suggest that the layoffs come as BetMGM struggles to maintain its position in the highly competitive sports betting market.

According to the American Gaming Association, sports betting revenue in the US has fallen by 29 percent in December 2024 compared to the same period the previous year. The slowdown in growth is linked to fewer new states legalising sports betting. As of 2025, 39 US states have legalised the practice.

BetMGM struggles to compete

This is majorly due to the fact that new and active users in betting apps continue to fall pan-America. Several analysts explain that the initial surge in sports betting, which was partly fuelled by the COVID-19 pandemic, has begun to ease. However, the industry remains in a period of evolution and adaptation.

Despite being a major player in the online gambling sector, BetMGM has faced challenges in keeping up with its biggest competitors, FanDuel and DraftKings, in the sports betting market. Sharp explained that both FanDuel and DraftKings gained a strong following through their dominance in daily fantasy sports, which gave them a natural advantage when sports betting became legal.

In contrast, BetMGM relies more heavily on the existing customer base of MGM Resorts’ retail casinos, a strategy that aligns better with online casino gaming than with sports betting.

Signs of broader industry decline

Despite the negative outlook, BetMGM has experienced some success. In January, the company recorded a 35 percent increase its monthly winnings, reaching $28 million (€25.8 million). However, it remained behind FanDuel, which led the New Jersey market with $49.7 million (€45.8 million) in winnings, followed by DraftKings with $44.1 million (€40.6 million).

Experts warn against viewing these layoffs as a sign of the broader industry’s decline. Bokunewicz noted that it is common for gaming companies to periodically reassess operations and make changes to improve efficiency, which can sometimes result in job losses.

BetMGM reported $2.1 billion (€1.97 billion) in revenue in 2024 and employs more than 2,500 people, including contractors, according to its official website. Despite its current restructuring, the company remains a significant player in the online gambling industry.