Job Cuts On The Cards For The Stars Group
The Stars Group opened up their offices in 2005 on the Isle of Man with only five employees. Since then, the group has grown that operation to have over 400 employees working in two different sites on the island. The company also now owns the building in the Douglas Bay Complex where the main offices are situated. In the statement made by The Stars Group, no mention was made of how many of those employees would go, which office site they would come from or if the company was planning to downsize to only one office site.
Regulatory Changes Largely To Blame
When announcing their income results for the second quarter of 2019, The Stars Group admitted that had expected the figures to be low. However, they still find themselves in a position where they will have to let staff members go.
The reason for the expected dip in revenues is largely due to the regulatory changes that PokerStars had to deal with in Switzerland and Russia. This resulted in their international Poker revenues dipping significantly. They registered an 11.7% drop in the second quarter.
In addition to struggling with regulatory changes and other disruptions in the online casino market, The Stars Group made two large acquisitions in the same time frame. They purchased BetEasy in Australia and Sky Betting & Gaming in the UK. This might be a positive move for the company but it does mean there is less cash to offset the drop in revenue.
Isle Of Man Important Offices
The Stars Group has stated that they will definitely be keeping the Isle of Man operations going despite having to lay off an unknown number of staff members. In a statement made to the press by the company, they spoke about how vital these offices were to their overall operations. The Isle of Man is home to their entire PokerStars operation. The offices there also host approximately one fifth of all employees in The Stars Group.