Bombay Group Cuts Over Half Its Casino Staff

Bombay Group has announced it is cutting more than half of its 164 employees, marking a dramatic downsizing for the luxury casino operation. The company operates a prominent Old Town casino hotel and resort complex in Tallinn that caters to high rollers. Consequently, this workforce reduction represents a significant shift for an establishment that involved approximately €100 million in investment and paid €10 million in taxes last year.

Bombay Group Announces Layoffs Affecting Over Half Its Staff

Management board member Dajana Tiitsaar confirmed that Bombay Group Tallinn is dismissing over half its workforce, specifically affecting more than 100 employees from the payroll. The biggest changes involve daily table games and other gambling activities, which management determined were economically unjustified.

This marks the second round of workforce reductions for the organization. Bombay Group had previously announced layoffs in November, signaling ongoing operational challenges. The current dismissals will be implemented throughout this month, primarily affecting staff involved in day-to-day casino gaming or related services.

The parent company Yolo Group had already reduced its workforce substantially. In late September, Yolo announced it was laying off 280 employees in Estonia. After these cuts, more than 600 people remained employed at Yolo’s operations. The broader restructuring aims to secure profitability for the complex following what the company describes as a period of rapid, inefficient growth.

Despite the significant reductions, which include an additional 280 roles across other Yolo Group entities, the company plans to maintain a presence in Estonia with approximately 800 people post-restructuring. Yolo Group is now focusing exclusively on regulated and licensed markets to remain competitive in the rapidly changing sector.

Why Daily Gaming Operations Became Economically Unjustified

Casino operations face substantial fixed costs that demand consistent high-volume activity to remain viable. For integrated gaming resorts, annual overhead typically reaches GBP 3.97 million, with labor representing the largest operational expense. Top-tier operations maintain labor cost percentages near 28% of total sales, while most venues struggle to keep this metric below 35%.

Manual table game processes contributed significantly to Bombay Group’s economic challenges. Casinos relying on traditional pit operations experience costly errors, fragmented patron tracking, and operational friction that directly erodes revenue. Dealer mistakes in tracking players and chips lead to inaccurate ratings and misallocated complimentary offerings. These inefficiencies create revenue leakage that compounds over time.

Labor shortages further strained daily operations, limiting the availability of experienced dealers and creating staffing instability. Consequently, maintaining the required average revenue per gaming visit of GBP 11,912.40 became increasingly difficult. This threshold is crucial for offsetting significant annual overheads, including substantial labor costs and variable taxes.

What Remains Open at the Bombay Complex

Despite the workforce reductions, several premium establishments within the Bombay Group Tallinn complex continue serving guests. The Burman Hotel remains operational at its Rataskaevu location next to the landmark well. This 17-room property maintains its 5-star Superior rating earned earlier.

Two restaurants included in the Michelin Guide continue their culinary programs. Shang Shi offers Cantonese dining experiences, while Koyo operates as an omakase restaurant, both receiving recognition in the newly published Michelin Guide Estonia 2025. These establishments occupy space on Dunkri within the refurbished complex that complies fully with heritage protection requirements.

The Fox Den poker school inside the complex remains active. In addition to these core operations, the broader entertainment offerings include Écrin for contemporary European cuisine, Maison Francois bakery serving customers from early morning, The Peacock Lounge cocktail bar, a cigar lounge, and the Velvet music club.

Bombay Group paid €10 million in taxes last year, including almost €1.5 million specifically in gambling tax. The 5,000-square-meter complex adjacent to Town Hall Square underwent refurbishment over five years before these operational changes. Management focuses resources on hospitality and dining experiences while scaling back daily casino gaming activities that proved economically unsustainable.