Extended interview: Gambling Commissioner confirms big companies on the Rock have made redundancies

Summary

The speaker discusses the rationalization and downsizing of companies in Gibraltar's gaming industry, including the merger of William Hill and 888, and the impact on employment. Despite economic pressures and regulatory challenges, the industry remains optimistic, with operators looking to optimize their businesses across multiple jurisdictions. The speaker emphasizes the jurisdiction's focus on overall economic contribution and the potential for growth, particularly with the rest of the world business, as Gibraltar adapts to the post-EU market environment.

Takeaways

• 🤝 The speaker won't comment on specific numbers for operators but acknowledges rationalization in the industry.
• 🔄 The merger of William Hill and 888 has led to cost savings and synergies, resulting in a reduced workforce.
• 📉 Some operators are downsizing due to various reasons, including regulatory pressures and competitive market entry costs.
• 🌐 Rationalization is often a multi-jurisdictional process, not necessarily leading to businesses leaving Gibraltar.
• 📈 The industry is under economic pressure, and operators are looking to optimize their businesses by cutting costs or growing revenues.
• 📊 The speaker is concerned about the number of people in the organization and its economic contribution to Gibraltar.
• 💼 Redundancies in Gibraltar often result in individuals being reabsorbed into other roles within the industry.
• 🚫 The speaker does not micromanage how operators optimize their businesses but keeps an eye on overall numbers and economic contributions.
• 🔄 Some customer service roles have already been moved outside of Gibraltar due to recruitment challenges.
• 🇪🇺 A non-negotiated outcome could negatively impact businesses, but many have continuity plans in place.
• 🌟 The speaker is optimistic about the future and is focused on growth opportunities, encouraging companies to bring their 'rest of the world' business to Gibraltar.

Q & A

What is the reason behind the rationalization of companies in Jala?

The rationalization is due to various reasons, including mergers such as the one between William Hill and 888, which leads to cost savings and synergies, and the need for operators to optimize their businesses in response to economic pressures and regulatory challenges.

How does the merger of William Hill and 888 affect the number of employees?

The merger would result in a reduction of the combined workforce as there are cost savings and synergies when integrating two businesses.

What is the general approach of Jala towards operators optimizing their businesses?

Jala does not micromanage the operators' optimization strategies but keeps an eye on the overall economic contribution and the number of people employed in the jurisdiction.

What happens to employees made redundant in Jala?

Most of the redundant employees are reabsorbed into the market in other roles, as there is often a demand for certain positions within the jurisdiction.

Which companies have been mentioned as downsizing or rationalizing their operations?

William Hill, 888, and Entain have been mentioned as companies that have downsized or rationalized their operations.

How does the economic pressure on the industry affect operators?

Operators can influence their bottom line by either cutting costs or growing revenues, and in the current economic climate, they may choose to rationalize their businesses to cope with these pressures.

What is the impact of regulatory pressures on UK operators?

Regulatory pressures in the UK have led to some operators relocating their EU licenses to other jurisdictions due to the restrictive nature of some European regimes.

What is Jala's stance on operators relocating their businesses?

Jala respects the right of operators to optimize their businesses and does not push back against decisions to withdraw certain roles if there isn't enough work for those employees.

How does Jala's Gambling Commission attract new business?

The Gambling Commission focuses on encouraging companies to bring their 'rest of the world' business to Jala and is optimistic about the future, highlighting the underlying factors that make Jala attractive for businesses.

What is the current employment situation in Jala's gambling industry?

There are generally around 3,600 people working in the industry, with a mix of middle-ranking and C-level roles within Jala.

What would be the impact of a non-negotiated outcome on Jala's businesses?

A non-negotiated outcome would require businesses to make continuity arrangements, potentially moving some jobs to other jurisdictions, but it is hoped that this will not be necessary as there is still optimism for a positive outcome.