The global gaming industry has added another clear signal that the market is entering a tougher operating phase. The new IGT gaming business, formed after its combination with Everi, is reported to be cutting around 700 jobs worldwide, equal to roughly 10% of its workforce. Sector coverage has tied the move to post-merger restructuring and a more uncertain macroeconomic backdrop, under the leadership of CEO Hector Fernandez. At the same time, the former lottery arm now operates separately as Brightstar Lottery, making it important not to treat the whole former IGT group as a single financial story.
That distinction matters because the financial picture is far from uniform. While the new IGT trims structure, Brightstar Lottery reported a much stronger 2025 profile: more than US$2.0 billion in debt reduction during the year, 2.4x net leverage at year-end, and more than US$1.0 billion returned to shareholders.
For 2026, the company projected revenue of US$2.50 billion to US$2.55 billion and Adjusted EBITDA of US$1.16 billion to US$1.19 billion. That suggests the current layoffs should not be read only as a distress signal, but also as part of a wider integration, simplification and capital-allocation strategy.
IGT is not alone. In February, DraftKings confirmed a restructuring that included job cuts, with outside estimates suggesting that a reduction of around 5% of staff could save roughly US$30 million annually. In Europe, Entain said it expects around £200 million in additional annual costs from higher gambling taxes in the UK, while responding with cost discipline and more intensive use of automation and AI. In Australia, Star Entertainment reported half-year revenue of A$585 million, down about 10% year-on-year, underlining the broader profitability pressure facing major operators.
The broader takeaway is larger than one company’s layoffs. Gaming is moving into a phase where post-M&A integration, aggressive cost review, higher tax pressure in some jurisdictions and the need to defend margins with leaner structures are all happening at once. In that environment, layoffs no longer look like isolated events. They look increasingly like part of a new operating discipline cycle across the industry.
