DraftKings implemented job cuts in New Jersey due to escalating issue of compulsive gambling concerns
DraftKings Outsources Live Dealer Operations, Shifts Focus Amid Industry Scrutiny
In a significant move, DraftKings, the popular online gaming platform, has announced that it will transition its Live Dealer operations to third-party studios in Atlantic City by January 31, 2025. This decision comes as part of a broader industry trend to optimize operational costs and quality.
The live dealer segment of online casinos is typically operated by specialized providers, such as Evolution Gaming, which has solidified market leadership with exclusive deals to become the sole live dealer provider for major platforms. It is unclear whether DraftKings will continue its partnership with Evolution or choose a different provider.
The studio, which originally featured six tables primarily focusing on blackjack, operated 24/7 and was exclusive to DraftKings players. Unlike other online casinos that share tables operated by third-party providers, DraftKings' tables were unique to its platform. The studio was opened in partnership with Evolution in 2019 at the Hard Rock Casino.
The decision to outsource live dealer services is not without consequences. DraftKings has announced a strategic decision to lay off 101 employees in New Jersey, attributing the layoffs to the shutdown of its live dealer studio. The company provided a 60-day advance notice for affected employees as required by the New Jersey WARN Act.
The layoffs come amid growing concerns about the effects of online betting. Lawmakers in New Jersey held a hearing to review the social and economic impacts of online sports betting. New Jersey officials have recently raised significant concerns regarding rising addiction rates in the state.
Despite these challenges, DraftKings remains committed to player safety. Lori Kalani, the company's chief responsible gaming officer, oversees a 60-person team dedicated to ensuring responsible gaming practices in New Jersey. The company emphasizes that online gambling is for fun and entertainment.
The online gambling sector is facing heightened scrutiny, and DraftKings' downsizing reflects shifting priorities in the market. However, it is worth noting that outsourcing live dealer operations to a professional provider could potentially enhance responsible gaming efforts by leveraging the provider's compliance expertise and tools, including player behavior monitoring and intervention capabilities.
In addition, integrating advanced data analytics and AI-driven marketing solutions can tailor interventions for responsible gaming, as demonstrated by recent integrations. However, outsourcing requires robust oversight by DraftKings to maintain strict control over responsible gaming policies, adherence to state laws, and real-time monitoring.
At this time, no direct public details or official statements about this decision or its effects on responsible gaming measures have been found. The company has not commented on whether the live dealer operations will remain in New Jersey or be moved elsewhere.
As DraftKings adapts to operational changes and regulatory pressures, it continues to prioritize player safety and responsible gaming. The company's commitment to these principles is evident in its efforts to provide a safe and enjoyable online gaming experience for its users.
- DraftKings, while outsourcing its Live Dealer operations to third-party studios, might leverage the provider's expertise in responsible gaming practices, such as player behavior monitoring and intervention capabilities.
- In the realm of online casinos, DraftKings' decision to outsource live dealer operations could potentially enhance its responsible gambling efforts, given the professional provider's compliance tools and technology.
- As technology advances in the online gambling sector, AI-driven marketing solutions can be integrated to tailor responsible gambling interventions, reflecting DraftKings' ongoing commitment to player safety and responsible gaming.
