The Stars Group Cuts 400 Isle Of Man Jobs
Posted on September 25, 2019 at 1:09am
Regulatory disruptions are yet again running amok with revenue income and this time round, it’s The Stars Group bearing the brunt of the negative after-effects thereof. The Canadian brand, who is the global parent to both SkyBet and PokerStars; has announced that due to a significant slow-down in certain key areas of trade, it has no other option but to cut staff numbers at its Isle of Man office. The exact number of staff affected has not yet been confirmed but the figure is expected to be somewhere around 400 positions.
Regulatory disruptions in mainly Russia, Norway and Switzerland are at the heart of the decision to cut costs and embrace extreme and significant optimisation initiatives in an attempt to re-align the online casino and Poker group’s operations with current and projected future market tendencies.
5th Of Group’s Payroll Laid Off
The group has confirmed that its Isle of Man office will remain a hub for global iGaming operations. It insisted that whilst a major staff-cut is by no means ideal, the move is very much necessary and that once the internal process has been finalised, the affected office will be in a position to resume everyday operations without any additional disruptions anticipated for the near future.
The 400 affected staff members represent around one fifth of the group’s global staff payroll. The Toronto-listed group saw its overall Poker revenue fall by at least 11.7% at the close of the second quarter of the current year with the overall situation made worse by a 5% decline in international user numbers.
Norway And Russia Main Culprits
The negative effects of the online gambling regulatory uncertainty and disruptions are made all the worse by significant currency fluctuations. The decline was however rolled into motion by payment-blocking systems in Norway and Russia, and shortly after motioned into full momentum by the group’s forced sudden withdrawal from Switzerland and Slovakia. The Stars Group is also minding its overall dealings with the Netherlands, where it has been called everything short of being referred to as a “cowboy operator”.
Poker has faced its fair share of woes and global opinions regarding whether the game is one of mainly skill or mainly chance remain widely divided. Many regulators have subsequently decided to instead of tackling the decision head-on, embrace the easy way out by avoiding the formulation of proper legalisation and legalisation altogether.