Malta-Based Gaming Giant Facing Downsizing After At Least 50 Jobs Axed
Jobs at the Malta-based offices of The Stars Group are facing the axe a week after the gaming giant cut a number of its staff at its Isle of Man offices.
At least 50 members of staff have so far been axed, with further losses expected to take place over the next year.
Rumours have also been swirling that the gaming company also plans to relocate some of its workforce from Malta. The Customer Service department is believed to be moving to Bulgaria, while some of its trading team has already moved on to its Dublin offices.
While failing to confirm the actual number of jobs that have been or are set to be cut, Stars Group told Lovin Malta:
“Given rapid changes in the industry, we are constantly reviewing our cost base, and have decided to review some potential changes to certain locations to better align our costs with our global growth strategy. We believe our proposals will help to position us to deliver our mid-term growth targets and long-term sustainable growth.”
However, it did insist that Malta will remain an important hub, a similar line to what was said during the Isle of Man cut.
The company first opened in Malta in 2012, eventually growing its workforce to over 300 employees.
The success of Stars Group, which is often reported as the world’s largest online poker brand, was even heralded by Prime Minister Joseph Muscat, who inaugurated their St Julian’s offices back in 2017.
“It’s a great honour to host a global brand such as The Stars Group, which has had stellar success. The Stars Group employs Maltese residents and expats, and the further growth of the company with the new office will complement economic growth here in Malta,” Muscat said at the time.
On 18th September, The Stars Group, which is the parent company of Poker Stars and Sky Bet, announced that it was cutting an unspecified number of staff at its offices in Isle of Man, which houses roughly 400 employees.
Regulatory issues appear to be behind the cutting down of staff, with the Stars Group’s most recent financial report noting weaknesses in the key international markets, including Russia, Switzerland and Norway.
In fact, the group saw an 11.7% decrease in international poker revenue during the second quarter of 2019.
Earlier today, Stars Group even received a €400,000 fine from the Netherlands Gambling Authority (KSA) for offering online gambling to Dutch players without a licence.
The issues are not unique to Stars Group, affecting the entire industry in Malta.
After moving from strength to strength, gaming has experienced a tough year, after Sweden introduced stringent regulations, while a number of other countries either already introduced or in the process of introducing similar measures.
One company, Global Gaming, has even been forced into axing half of its staff, while GIG has recorded a 16% drop in revenue.
Junior Minister Silvio Schembri has backed Malta’s competitiveness. However, it remains to be seen what the future holds for the secto
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