The management of Tombola, will proceed with a reorganisation as part of an ‘extensive operational review’ of the UK’s largest online bingo business.
The staff of Tombola were informed last week of the decision, which as reported by the Financial Times, could impact up to 250 jobs – “according to people briefed on the plans.”
Meetings for affected staff have begun to take place, in which Tombola is reported to want to reduce the headcount of its ‘customer experience team’, which currently maintains 250 employees.
Based in Sunderland, Tombola is reported to employ 700 staff in the UK, primarily at the bingo firm’s Wylam Wharf HQ on the banks of the River Wear. The business is recognised as one of North East England’s most important tech and online employers.
At the close of 2021, Flutter acquired Tombola for £402m, a deal needed to diversify the FTSE100 Group’s UK-&-Ireland product portfolio which was primarily reliant on sportsbook and online casino brands.
Dealmakers cited Tombola’s proprietary online bingo room and suite of casual games as key assets for Flutter to enhance its strategy, targeting recreational players and adding low £2 stake games to its portfolio in preparation of likely compliance outcomes expected of the UK Gambling Review.
Added into corporate accounts in 2022, Flutter reported that Tombola generated sales of £117m and a pre-tax profit of £25m. However, Tombola’s statutory accounts booked a £46m loss in 2022, as the business accounted for a £74m donation to local charities prior to its acquisition by Flutter.
Tombola publicly addressed its reorganisation in which affected employees will undergo a formal consultation process – “that will include significant opportunities for redeployment within the business but will also unfortunately lead to a number of redundancies”.
City analysts keenly await for Flutter’s Q3 trading results on 9 November, needed to examine growing signs of a commercial slowdown in the UK online gambling sector, impacting all operators.