Employees of PartyGaming subsidiary Ivy Comptech are experiencing first hand the consequences of recent legislation in the United States aimed at curbing the activities of the online gambling industry. Over 800 Ivy Comptech employees based in India are being retrenched, according to reports in the Asian Age. The company has initiated the retrenching exercize as a way of initiating a “right sizing” initiative in the wake of the U.S Congress’ approval of the Unlawful Internet Gambling Enforcement Act.
In a media announcement, an Ivy Comptech spokesperson confirmed that "the company is rightsizing its operations in order to go forward in the best shape in the current business scenario. Over 50 percent of the employees (800 plus) have been told to leave with a financial package."

Those employees most affected are those holding entry and mid-level positions in the firm. However, Ivy Comptech is reportedly making every effort to help their ex-employees find alternative work and is hoping to replace at least 80 percent of those affected in other I.T companies in Hyderabad. "As part of the out-placement process that began at 3 p.m. last Thursday afternoon, Ivy Comptech held talks with Nipuna Services Ltd and about eight companies are expected to come on Friday to pick prospective employees," company sources confirmed. For those employees unsuccessful in obtaining new positions, recruitment consultants are being hired.
Ivy Comptech’s parent company PartyGaming has accrued significant costs since the introduction of the legislation. The firm has pledged to cease its U.S activity and will no longer accept wagers from American casino fans. Despite its efforts to diversify in recent years, PartyGaming still relies on the U.S market for nearly 75 per cent of its revenue.
The firm is now refocusing its efforts on the lucrative Asian market, namely China, the Philippines and Singapore.

News of Ivy Comptech’s troubles has followed on from a similar down-sizing exercise at Random Logic, an Israeli firm owned by 888 Holdings. Reportedly one hundred employees will be losing their jobs as a result of the general uncertainty pervading the industry.

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