Coolbet Announces Mass Layoffs: Nearly Half of Estonia Headquarters Staff Affected

Troubling news has emerged from Tallinn as the well-known online gambling operator Coolbet announced a drastic restructuring that hits the core of the company. More than 130 employees are set to lose their jobs as the Estonian subsidiary VG Estonia OÜ initiated the collective redundancy process. This radical step illustrates the immense pressure even established industry players are currently facing due to international regulations and economic uncertainties.

The news came as a surprise to many observers, as Coolbet has often been regarded as a success story within the Nordic gaming scene in recent years. However, the reality behind the scenes is clearly different. COO Tomas Graham has already submitted the necessary notifications to the local authorities. The fact that nearly half of the team at the Estonian headquarters must leave is a clear signal of a strategic realignment that goes far beyond simple cosmetic corrections.

Numbers and facts

The raw figures highlight the scale of the crisis at the Estonian subsidiary. VG Estonia employed over 300 staff members at the end of the third quarter. With the planned 134 layoffs, the Tallinn location will lose almost 50 percent of its personnel. In total, the Coolbet group employs more than 1,100 people worldwide, meaning the cuts primarily affect the operational structures in Eastern Europe. Financial reports for 2024 showed a turnover of 23 million euros for VG Estonia with a net profit of 311,000 euros. Interestingly, reports to the Tax and Customs Board for 2026 indicate a turnover approaching 60 million euros, with an average gross monthly wage of 4,100 euros. Nevertheless, according to management, these figures are insufficient to overcome current challenges without personnel cuts.

“We have started the official collective redundancy consultation process, and the final scope of the redundancies and the positions affected will become clear after it ends. Nothing has been finally decided today.” - Tomas Graham, COO at Coolbet

Background

Why does a seemingly profitable company need to lay off so many employees? Graham cited a combination of various factors. Firstly, performance in the B2B sector fell short of expectations. Secondly, the operator is struggling with growing regulatory requirements and increasing tax burdens in core markets. This is a phenomenon we are currently observing across Europe. When countries tighten their laws and increase levies, operators' margins often drop so significantly that only massive personnel savings can ensure survival. According to Graham, the restructuring is intended to guarantee Coolbet's “long-term sustainability and competitiveness.” It is, therefore, a matter of survival in a market that is becoming increasingly unforgiving of mistakes.

Why it matters for German players

For German players, this news serves as a warning. Coolbet is not currently listed on the official whitelist of the Gemeinsame Glücksspielbehörde der Länder (GGL) for operating online slots or sports betting in Germany. This means that German customers should not be playing there legally anyway. Furthermore, the massive layoffs show how volatile companies can be when operating in international, sometimes grey, markets. In Germany, the State Treaty on Gambling 2021 (GlüStV 2021) provides a protective framework through strict rules such as the 1,000 euro monthly deposit limit and the 1 euro stake limit per spin for slots. Players at German-licensed operators are protected by the LUGAS system. An operator that, like Coolbet, buckles under regulatory pressure in other countries or drastically cuts staff always poses a certain risk to operational stability and payout security if no German license is held.

What it means for GGL-licensed casinos

German casinos with a GGL license could indirectly benefit from such market shocks. When international giants like Coolbet stumble or are forced to withdraw from markets, it stabilizes the regulated German market. Operators who submit to strict German taxes and rules may have higher fixed costs, but they stand on a more secure legal foundation than firms constantly juggling between different jurisdictions. The Coolbet case proves that high turnover alone is no guarantee of stability if the regulatory burden in target markets rises unpredictably. For the German market, this means the GGL will continue to pay close attention to the financial capability of applicants to avoid similar shockwaves within the Federal Republic.