Foreword

For many avid gamers, working in technology – whether it’s on a major social media platform, as an app developer or designing casino games at one of the world’s top gaming studios – is a dream come true. However, with the uproar caused by mass layoffs at tech giants like Twitter and Meta, you can’t help but wonder how stable the online gaming industry will be next.

As lucrative as this online casino industry may be, with hundreds if not thousands of promotional offers available to players worldwide, such as daily cashable no deposit bonuses – the online casino industry is not untouchable.

Unstable background

Now, when you browse the internet, you hear about another disruption in the Twitter world, since billionaire Elon Musk bought the company for $44 billion. Whether it’s banning impersonation accounts or requiring users to pay for blue tick verification, it’s safe to say that Musk is wreaking havoc.

Aside from his haphazard approach to agreements, however, the real concern is the massive layoffs in Twitter’s workforce. At present, more than 3,000 Twitter employees have lost their jobs, accounting for almost half of the company’s total workforce.

However, this is not an isolated case. It was also recently announced that Meta, the company that owns Facebook, Instagram and WhatsApp, will also cut 11,000 jobs globally. Things don’t stop there. While these stories don’t always grab the headlines, you just have to dig a little and you’ll find that Lyft recently laid off around 700 employees, and Microsoft announced layoffs as well.

Perhaps less worrisome, but also a sign that the industry may be in trouble. Both Apple and Amazon are reportedly implementing hiring freezes to reduce labor costs.

Of particular concern to the online casino industry is the announcement by payments giant Stripe that it will soon lay off more than 1,000 jobs. Although Stripe is not currently in the gambling payments business, the fact that it will lay off about 14% of its workforce has raised concerns that other similar businesses working with casino operators may soon follow suit.

Impact on the online gaming industry

The fact that a number of prominent tech companies are securing significant layoffs is particularly worrying for the online gaming industry, which is already grappling with rising costs. Moreover, it’s not just layoffs that are worrisome; many companies are freezing hiring, suggesting that growth across the industry may slow in the coming months.

With results for the third quarter of 2022 released, casino operators and suppliers appear to be pointing to inflation as the main reason for their financial decline. Inflation not only affects the operating costs of a business, but also the behavior of customers. So, for now, the outlook for the industry seems too bright, and we have to wonder if there will be another wave of layoffs.

How the situation has changed

As we look back at 2021, workers appear to have all the power in the job market, especially in areas where skills are lacking. If a company treats you poorly or doesn’t offer the proper perks, it’s easy to quit knowing that there might be another job opportunity nearby.

However, it now appears that things have turned in employers’ favor almost overnight. Job vacancies are becoming scarcer and more potential employees are vying to fill them.

Naturally, the prospect of a recession and a nationwide cost-of-living crisis have also played a role in changing the economic outlook for businesses looking to cut costs in order to survive. Furthermore, the past few years have been characterized by low interest rates and strong investor sentiment, which has been very favorable for growth and investment. However, it seems many are getting caught up in the hype and failing to invest in more stable ideas that would have better prepared them for the difficult times ahead.

Looking to the future

In short, while the online gaming industry is currently fairly stable and still poised to grow in the years to come, it is vital that online casino operators remain proactive and not complacent.

We operate in a hyper-connected world, and what we are seeing in the tech industry certainly worries online gaming operators. Furthermore, we know that the decline experienced by the once hype-driven crypto industry is also closely related to the online casino market.

Like the tech industry, online gambling may have been an industry that thrived during the pandemic when other industries were struggling to stay afloat, but as we head toward a recession and a world economic outlook shattered by a cost-of-living crisis, layoffs for the online casino industry concerns are not unfounded. Therefore, if the major players in the industry really want to avoid mass layoffs of the same magnitude as those experienced by the technology sector, they should focus on building sustainable business models.