Penn Entertainment and Gambling.com Group have announced significant job cuts as the gambling industry adapts to new technological and market pressures. Gambling.com is reducing its workforce by 25%, equating to approximately 150 positions, while Penn Entertainment is cutting over 75 roles from its Interactive division. These reductions come as the sector increasingly adopts artificial intelligence (AI) and faces competition from regulated prediction markets. Gambling.com reported a $1.2 million loss in Q1, with AI now responsible for generating 80% of new engineering code, contributing to planned annual savings of $13 million. The company's stock plummeted over 45% following the announcement. Meanwhile, Penn Entertainment's cuts affect its theScore Bet, online casino, and social gaming units, following a January restructuring. Prediction markets, such as those operated by Polymarket and Kalshi, are drawing users away from traditional sportsbooks, processing a combined $150 billion in lifetime volume. As the American Gaming Association pushes for stricter regulation, the industry braces for further consolidation and regulatory challenges.