Gaming1 has made 42 redundancies at its digital technology centre. The decision is all the more controversial given the company’s flourishing business, while at the same time boasting a sustained recruitment policy.
A brutal reshuffle
Gaming1‘s digital technology centre in the heart of the Guillemins district of Liège is home to its teams dedicated to online gaming. In recent weeks, the site has undergone a radical reorganisation. Some fifteen employees left the company two months ago, followed by 27 more recent redundancies, bringing the total to 42.
Gaming1 is not in any visible financial crisis. On the contrary, the company operates in around ten countries and supplies online gaming technology to 21 operators in six countries. But according to Emmanuel Mewissen, Gaming1’s managing director, the digital technology sector requires constant rethinking.
“We have to realise that digital technology is a constant race for performance, forcing us to constantly evolve towards excellence. And if we want to maintain this quest for excellence in Liège, which is already a gamble because we’re not in California, we have to constantly renew ourselves. And we need the best.”
The redundancies took place in what management describes as a concerted effort. Emmanuel Mewissen claims that the departures were negotiated in agreement with the union representatives. The employees concerned benefited from departure packages that were deemed generous, without any major disputes.
Making redundancies while recruiting: an accepted paradox
At first sight, the equation seems incomprehensible. How can you justify 42 redundancies when Gaming1 is simultaneously advertising around fifty vacancies? And yet, as far as management is concerned, there is no contradiction.
The Group has an ongoing recruitment policy, with around 50 profiles being sought on an ongoing basis. The objective is clear: to attract top-level developers and experts to Liège. The skills in demand today are not necessarily those of yesterday. The reorganisation is therefore less about reducing the wage bill than about transforming the nature of in-house expertise.
However, the redundancies cannot be understood without placing them in a broader context. Gaming1 is facing a dramatic increase in taxation on gambling and betting in Belgium. Overall taxation has risen by 70%, under the combined effect of federal and regional decisions. For a company operating in a sector that is already heavily regulated, this tax shock is taking a heavy toll on margins and investment capacity.
Emmanuel Mewissen:
“And that’s not all! It’s also important to remember that our business is subject to very strict player protection regulations, and I’m delighted about that. But at the same time, Facebook and other companies are constantly running adverts linking to illegal online gambling sites, which are not subject to any restrictions. Some are even using our names and logos to attract players.”
A company with many faces
Gaming1 is not just about online gaming. Founded by a group of Liège-based entrepreneurs working on games and technology projects, Gaming1 has built its reputation on its ability to offer integrated and innovative gaming experiences.
It provides complete technology platforms to operate online casino and sports betting sites, while managing well-known brands such as Circus, 777 and PokerStars in Belgium. Gaming1’s ambition is to become a global reference in regulated online gaming markets.
Of the 1,650 people employed by the group, around 1,200 work in land-based activities such as the casinos in Spa and Namur and the Circus gaming rooms. The 450 digital employees develop and operate the online platforms that drive the entire business model.