Bloodbath at Gaming Affiliate Content Firms
It's a dark time for gambling affiliates.
Following last week's announcement that one of the largest affiliate content providers in the gaming space, Catena Media, had let go dozens of employees, another firm followed suit.
This week we are learning that Better Collective, too, laid off a significant percentage of its staff.
Hammer Falls at Catena Media
At Catena, some 10 percent of employees were let go.
“As part of our drive to embed our new product-led organization, we are optimizing the operational teams to achieve a flatter structure that is more closely aligned with our product goals. Today, our priority is to support all the individuals who are affected by the changes,” said Catena Media CEO Manuel Stan.
The cuts are expected to save Catena €2.2 million annually.
Catena employs some 300 people with roughly one-third of those based in North America prior to this round of layoffs. Catena Media offloaded its British and Australian sites in 2023 after selling the AskGamblers brand to GiG in 2022.
“It is important that our balance sheet reflects current realities. In sports betting, we have been operating at a loss for an extended period. We have responded to market challenges by shifting resources away from loss-making products and into those that we believe have the best potential to generate long-term value. I believe that this strategy will position us for success in the coming quarters,” Stan said of the changes.
Industry journalist Matthew Kredell compiled a list of those Catena Media employees affected by the recent round of layoffs.
Following up on my offer to help people affected by the latest round of layoffs at gambling affiliate Catena Media, I am compiling a list of folks looking for work. (I am still working on finishing the list, but wanted to get it out in the world.)
I can provide recommendations for most of these folks directly.
If you see this and can like or reshare for awareness, that would be great. I would love as many of these folks to land on their feet as possible."
If you were laid off (now or earlier) by Catena and see this and want to opt in, just message me.
Catena Media content properties include the likes of Legal Sports Report, Gaming Today and Bonus.com.
In addition to beat reporters and writers, Legal Sports Report let go its Editor-in-Chief, Adam Candee.
Dustin Gouker, a former consultant and executive at Catena Media, also did his part to try to assist those who abruptly lost their jobs.
It's been a whirlwind of a week going from idea to product, but here it is: The Gambling Industry Reverse Job Board. This is a resource looking to connect employers with prospective employers in gaming. I asked if people thought this was a good idea, and they did, so here it is. I have more than 60 people who opted in looking for work in gambling in just the past few days.
Support by sharing my post about it or the resource:
Substack post: https://lnkd.in/gw5Dj8Cf
Job board: https://lnkd.in/gBDisqnb
Form if you are looking for work: https://lnkd.in/gycPcuKR
The Bleeding is Just Starting
Parent of Action Network, Playmaker HQ, reportedly cut more than 100 Jobs. Better Collective announced a round of layoffs days after it adjusted its revenue target for 2024. The company acquired Playmaker Capital last year in a nine-figure deal.
Playmaker HQ is also the company behind Shaquille O’Neal’s The Big Podcast.
Better Collective CEO Jesper Søgaard took to LinkedIn on Tuesday to announce cutbacks that came after the company downgraded its “financial targets for the year.”
“Unfortunately, this plan also includes the difficult decision to part ways with some of our colleagues,” Søgaard wrote. “Each of them has played a role in shaping Better Collective into what it is today, and for that I owe them all a big thank you!”
Søgaard did not state the number of layoffs or which parts of the company were targeted with the cuts. A spokesperson for Better Collective declined to state the total number of layoffs. At the end of 2023, Better Collective had 1,211 employees.
Not everyone was kind to Søgaard, who, for now at least, still appears to be holding onto his job.
Dimitris Panageas, Group General Counsel, Arrow Strategic Holdings. posed the question: "Interesting approach…. May I ask, what are you considering to do about yourself? How about resigning from CEO? After all, the mess you are describing happened in your watch."
Panagreas continued: "I mean the mess he describes in his post. But for his shareholding capacity, he would be the first to be fired. The accountability and its consequences run from top to the bottom, not vice versa. If not, then you have audacity. The German philosopher Emanuel (Immanuel) Kant said that the benchmark of human morality is the unconditional commitment to live with the consequences of our decisions. Of course, anyone can always put the blame on others, including aliens….."
Among those impacted, Charlie DiSturco, producer and on-air personality at the Action Network.
As you may have already heard, Better Collective underwent a huge wave of layoffs today, and I was among those affected.
— Charlie DiSturco (@charliedisturco) October 29, 2024
Words cannot express just how fondly I look back at my time at Action Network and all those I've worked with. It truly became a family that I would go to war…
As you may have already heard, Better Collective underwent a huge wave of layoffs today, and I was among those affected.
Words cannot express just how fondly I look back at my time at Action Network and all those I've worked with. It truly became a family that I would go to war with any day of the week.
Five years ago, I was a nobody trying to find any job in sports media.
I somehow bugged enough people at Action for them to give me a foot in the door. From there, I did everything I could. Video edit? Sure. Write up game guides? 100%. Self-produce my own videos giving out picks? No question.
All of that culminated in my eventual chance to be the host of Green Dot Daily.
It's been a rollercoaster both growing as a sports bettor and overall human being. I've matured a lot and have been humbled by the ups and downs that is this industry. But I'm god damn happy I'm here.
I can't wait to find out what's next for me in this industry. DMs are open and you can reach me at charliedisturco@gmail.com
If you've made it this far, thank you for following along through my time at Action. I truly appreciate every single one of you that has made my time here a blast.
This begs the question: WHY?
Gaming affiliate content sites should be right up there with electric vehicle (EV) and global Artificial Intelligence (AI) in terms of thriving industries.
Ironically, AI could be playing a role in the recent layoffs.
And, yes, we asked Google's AI, which returned the following answer:
Gambling affiliate companies may be laying off employees for a number of reasons, including:
Market challenges
Companies may be shifting resources away from products that are operating at a loss and towards products that have the potential to generate long-term value.
Company restructuring
Companies may be restructuring to support growth into new product categories and audience segments.
Economic downturn
The global economic slowdown in 2024, coupled with rising interest rates, may have made it more difficult for companies to secure funding.
Post-COVID industry contraction
The gaming sector may be experiencing a post-COVID industry contraction, which has led to studio consolidation.
Structural issues
Long-standing structural issues related to the supply and demand of labor may lead to recurring layoff cycles.
Gambling911.com: 'In One Foul Swoop, Nearly All of Our Colleagues Are Gone'
"It's depressing seeing this all occur but obviously Gambling911.com is the most read site in the space and has been for over 25 years now so whatever we can do to help spread the word about the available talent pool that is out there, we will do so," remarked Chris Costigan, founder of Gambling911.com.
"We've been there with Black Friday," Costigan noted. Gambling911.com, which does not incorporate an affiliate model, lost more than 60% of its flat fee ad revenue following that crackdown in April 2011. "You have to keep trudging along and adapting, which is often easier said than done."
Costigan, however, wasn't exactly sympathetic towards those who had to make these "hard decisions".
He alluded to comments such as these:
It takes a lot of courage to bring this topic into the public space and be honest about the company's challenges, Jesper Søgaard.
The main thing to remember is that both startups and giant corporations have difficult periods. It only matters what conclusions we draw from them.
"Spare us please," Costigan remarked. "This is mostly about corporate greed and having to answer to shareholders. This industry was built on grit and love for what we do, not selling out and chasing after that next shiny object."
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