Flutter initiates restructuring at Tombola

Flutter Entertainment has taken decisive steps towards the reorganization of Tombola, aiming to achieve significant cost savings and enhance operational efficiency within its flagship UK online bingo platform. Last week, employees of Tombola were informed of this decision, which, as reported by the Financial Times, may impact up to 250 jobs as part of Flutter’s ongoing cost-saving initiatives, as indicated by sources familiar with the situation.

Meetings have already commenced for the affected staff, with Flutter’s primary objective being a reduction in the headcount of Tombola’s ‘customer experience team,’ which currently consists of 250 employees.

Major overhaul and cost saving measures

In an effort to seek cost savings, Flutter Entertainment is determined to focus on its group-wide efficiencies and eliminate duplicated roles at Tombola. This reorganization also extends to roles that overlap with Flutter’s other premier UK brands, including Paddy Power, Betfair and Sky Bet.

Situated in Sunderland, Tombola currently employs around 700 staff across the UK, with a substantial presence at the firm’s headquarters in Wylam Wharf, situated along the banks of the River Wear. The company holds significant importance as one of North East England’s key tech and online employers.

At the end of 2021, Flutter Entertainment acquired Tombola for £402 million, a strategic move aimed at diversifying the FTSE100 Group’s UK and Ireland product portfolio, which had predominantly relied on sportsbook and online casino brands.

Proprietary online bingo

Tombola’s proprietary online bingo room and casual games have been pivotal in Flutter’s strategy, targeting recreational players and expanding its portfolio to include low £2 stake games in anticipation of the expected outcomes of the UK Gambling Review.

According to Flutter’s corporate accounts for 2022, Tombola reported sales of £117 million and a pre-tax profit of £25 million. However, Tombola’s statutory accounts showed a £46 million loss in 2022, attributed to a £74 million donation to local charities before its acquisition by Flutter.

Tombola has publicly addressed its reorganization, acknowledging that affected employees will undergo a formal consultation process. This process will include substantial opportunities for redeployment within the organization but regrettably may also result in several redundancies.

Group restructuring

As Flutter Entertainment progresses with the restructuring of Tombola, this is being viewed as another strategic move in response to market dynamics. This development highlights the company’s commitment to optimizing group-wide efficiencies and adapting to the evolving gaming landscape.

Flutter is also restructuring PokerStars and reshaping its role in the global gaming market.

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