Catena Media Implements New Layoffs: Focus Shifts to Core Products

The consolidation within the igaming affiliate sector continues as Catena Media implements another wave of staff reductions. This latest round specifically targets the regional sites team, with the company confirming that five roles have been affected. The responsibilities of the departing staff members are being redistributed across other groups within the business to maintain operational continuity. This streamlining is part of a broader strategic reset aimed at focusing on the most profitable core products.

These layoffs are not isolated incidents but part of a multi-year effort to stabilize the business. Sources indicate that there have been at least three rounds of redundancies in 2024 alone. The company has faced significant headwinds, including Google algorithm updates that severely impacted its search engine optimization (SEO) performance and an over-reliance on the rollout of new US states, which did not meet initial growth expectations.

Numbers and facts

Catena Media's financial trajectory explains the necessity of these drastic measures. During the second quarter of last year, the company let go of approximately 50 people, representing 25 percent of its total workforce. This restructuring eliminated an entire layer of management and was projected to save between 4.5 million and 5.0 million Euros annually. The Q1 2026 financial materials already showed the impact of these cuts, with total personnel expenses falling by 18 percent.

Revenue figures also highlight the challenges. In a previous third quarter, total revenue dropped slightly to 32.3 million Euros from 33.1 million Euros year-on-year. While the sports betting segment grew by 12.9 percent to 14.0 million Euros, the casino segment saw a 10 percent decline, falling to 17.9 million Euros. These shifts forced the board to re-evaluate its global footprint and divest non-core assets.

Background

Under the leadership of CEO Manuel Stan, Catena Media is attempting to pivot toward a more sustainable business model. Part of this involved the sale of major assets like AskGamblers to Gaming Innovation Group (GiG) for 45 million Euros in late 2022. This sale allowed the company to reduce debt and focus its efforts on regulated markets in North America and Europe.

„The measures being taken, and to be taken, as part of the strategic review are optimising the business to capitalise on the growth of online sports betting and casino in North America.“ - Michael Daly, former CEO of Catena Media

Another significant development was the entry of Better Collective, which acquired a 5 percent stake in Catena Media. This move by a direct competitor signaled that despite the layoffs, Catena’s underlying assets remain attractive. However, the continuous cycle of job cuts suggests that the road to full recovery remains steep, as the company navigates a high-inflation environment and shifting player spending patterns in Europe.

Why it matters for German players

For players in Germany, the downsizing of regional teams at international affiliates like Catena Media can lead to a decrease in localized expertise. The German market is highly regulated under the Interstate Treaty on Gambling 2021 (GlüStV 2021). Without dedicated regional staff, information regarding specific German regulations might become less accurate. Players must ensure they only use platforms that promote GGL-licensed operators.

German law mandates strict player protections, including a 1,000 Euro monthly deposit limit across all platforms and a 1 Euro per spin limit on virtual slot machines. These features are linked to the LUGAS and OASIS systems. If major affiliate sites reduce their local focus, they might miss updates on these crucial regulatory details. Therefore, it is essential for German users to cross-reference any offers with the official GGL whitelist to ensure they are playing at a legal and safe casino.

What it means for GGL-licensed casinos

Operators holding a license from the Gemeinsame Glücksspielbehörde der Länder (GGL) face a changing landscape for player acquisition. As large affiliates consolidate and reduce their regional footprint, the quality of traffic might shift. Licensed casinos rely on partners who understand the strict German advertising rules, such as the prohibition of ads between 6:00 and 21:00 for certain products. The reduction in regional teams at Catena Media could create a gap for smaller, specialized affiliates who focus exclusively on the German legal framework. For operators, maintaining high standards of compliance is paramount, and they will likely favor partners who can demonstrate a deep understanding of German player protection laws over generic international platforms.