Layoffs spread across the sports betting industry amid double pressure from AI automation and the growth of prediction markets

Penn Entertainment and Gambling.com Group are cutting staff to reduce costs as the U.S. sports betting industry comes under pressure.

Gambling.com said AI now handles a significant share of coding work, highlighting how automation is reshaping operations.

At the same time, prediction markets such as Polymarket and Kalshi are drawing attention and increasing competition for traditional sportsbooks.

The combined pressure from AI and emerging regulated prediction markets is straining both employment and revenue models across the sector.