Kindred to Leave the North American Gaming Market

Article by : Erik Gibbs Nov 29, 2023

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Kindred Group has informed investors of its decision to withdraw from all North American markets by the end of Q2 2024 as part of its strategic plan to refocus and expedite profitable growth.

The Stockholm-listed operator, responsible for the Unibet Sportsbook and Casino brand, initiated a global operations review in April, leading to the decision to exit online operations in Ontario, Arizona, Indiana, New Jersey, Pennsylvania and Virginia.

The withdrawal is contingent on regulatory approvals and is projected to conclude by the end of Q2 2024. This move follows Kindred’s exit from Iowa just a year ago, signaling a shift towards multi-product states for North American success.

Despite deploying its proprietary tech stack in New Jersey and Pennsylvania, Kindred faced challenges in gaining market share in a highly competitive landscape dominated by well-capitalized, tier-one brands.

Although the group had previously aimed to be a top 10 operator in online casino and sports betting markets, it fell short of achieving this goal.

In addition to the North American exit, Kindred is implementing cost-cutting measures that include reducing its headcount by 300 employees and consultants. This initiative is part of a broader plan to achieve £40 million in annual savings.

Kindred Group’s Interim CEO, Nils Andén, emphasized the necessity and decisiveness of the cost reduction measures announced, acknowledging the challenging decision to inform colleagues about redundancies.

While expressing regret for the workforce impact, Andén highlighted that these actions are integral to positioning Kindred for long-term growth in its locally regulated core markets.

The strategic reallocation of resources and technology capacity will be directed towards initiatives and selected markets with clear growth potential.

Andén assumed the role of Interim CEO earlier this year during the initiation of the strategic review, succeeding former CEO Henrik Tjarnstrom.

The ongoing review, set to continue throughout 2024, is part of a broader series of changes in Kindred’s C-suite leadership, reflecting significant operational shifts.

With the savings generated from exiting the North American markets, Kindred plans to refocus on its core Western European and Nordic markets, where it has a strong presence.

The group aims to address market share losses in key regions like the Netherlands, Sweden, and the UK by implementing growth initiatives.

These initiatives include extending hyper-local casino brands, reallocating marketing investments and tech resources to selected markets and strategic projects, and enhancing product differentiation through exclusive content.

While the strategic review remains ongoing, Kindred has not ruled out the possibility of a full or partial sale in the future.