Exclusive Q&A: Kindred Group CEO on the 'journey to zero' and US market exit

Stepping away from taking in one of cricket’s most iconic venues, The Oval, Kindred Group CEO Nils Andén takes a seat to speak to EGR ahead of the operator’s eighth annual Sustainable Gambling Conference (SGC). 

This was Andén’s first time hosting the SGC since taking over from his predecessor, Henrik Tjärnström, permanently last month, having served in an interim capacity since May 2023.

It was appropriate enough for this year’s conference to occur in the city Andén has called home for two decades. As he came into the historic arena on his Vespa, he was ready to discuss the firm’s ongoing mission to achieve 0% of revenue from harmful gambling while also detailing why events such as the SGC are vital to bringing the topic of safer gambling to the forefront. 

While chatting in a suite named after legendary England cricketer Mark Butcher, Andén also delved into what the company’s focus is going forward as well as the exit strategy for the operator’s withdrawal from the US market. 

He also highlights the ongoing testing of the Kindred Sportsbook Platform and how the firm is preparing for a busy summer of sport.

EGR: This is the eighth annual SGC for Kindred. How important are these types of events for the industry and yourselves?

Nils Andén (NA): I think it’s extremely important that not only Kindred as a company drives the sustainability agenda within our sector. I’m referring not only to operators and suppliers but also to regulators, politicians and the ancillary services around the industry. 

When we have these conversations across the board, we can make a difference and start moving in the right direction jointly as an industry. 

EGR: We can’t talk about responsible gambling without discussing Kindred’s journey to zero. The figure has been hovering around 3% for quite a while. Was the target of zero too unrealistic?

NA: I think getting to zero is mathematically difficult as at the end of the day we have customers that come in and it takes time for us to know what their behaviour is, so I think that to get to an actual true zero is very very hard on our own. But the whole organisation is focussed on this ambition. 

A big part of our journey is starting to report these numbers, and I think we initially had high hopes that more players in the industry would follow suit. Funnily enough, FDJ is one of the few other companies that has a stated target in terms of revenue from harmful gambling.

EGR: Was this shared philosophy something that made the bid from FDJ more appealing?

NA: I think it was probably more important for FDJ to see that. If they’re going to buy a company in the competitive space of online gambling, ESG and sustainability needs to be an important part of their business model, I think this was a very important part of their decision-making. 

EGR: You previously spoke about driving growth in stronghold markets. How will you achieve this, and what role will AI play?

NA: AI will play a role in protecting players from harm but will also provide players with relevant information at the right time to the right customer. [AI] sits across the full experience and provides customers with a rich and rewarding experience. AI is a cornerstone, and we’re working very diligently to ensure we can have a rich experience across all touchpoints, from when you interact with Kindred to when you leave. Automation will be a very important part of that; due to the size of our customer base, it’s impossible to have one-on-one conversations with customers manually. 

EGR: What markets will you focus on in the next 12 to 18 months?

NA: We have a fairly rich footprint in Europe, but I think it is fair to say that certain markets are more attractive for us either because of our positioning or because of our historical brand values. Generally speaking, our core focus is in the Nordics and Western Europe at the moment, in markets like France, the Netherlands, the UK, Denmark, and Sweden. Romania is also a super attractive market. 

EGR: This renewed focus on Europe follows the announcement of Kindred’s planned exit from the US. When do you expect to have fully exited from the market, and what is your approach to the withdrawal?

NA: It is a phased approach through the first half of 2024. Depending on our operational setup and the state, it will be a phased approach, and by 30 June, we expect to have fully exited the US market.

EGR: You also announced in November that you were initiating a cost-cutting program. When do you expect to see the benefits from this, and how does the FDJ acquisition change your strategy?

NA: We initiated the program at the tail end of 2023, so we are only one quarter, and it’s fair to say that the benefits we will see will come throughout 2024 and kick into 2025. It’s a managed process, and we don’t want to disrupt the good work we’re doing now. Generally speaking, we’re moving in the right direction from an underlying cost standpoint and in terms of how we operate as a company. 

The second half of the question, in terms of aligning with the FDJ, is a little bit more difficult at the moment as the deal won’t go through till mid-November. So, at the moment, we are focusing on our destiny because there are still variables of uncertainty. We are fully focused on our execution, and then, as we near completion, there will be discussions with FDJ, but until then, we’re two competing companies, and that’s how we run it. 

EGR: What will come from Kindred ahead of a busy summer of sport?

NA: I have a couple of things to speak about. First, 2024 is a super exciting year with the Euros and the Olympics happening in Europe. We have a lot of exciting stuff in the pipeline. We are very happy that we have gone live with the Kindred Sportsbook Platform (KSP) in the test market, and post-Euros, we will see substantially more of this product, which we’re very excited about. 

EGR: Are the Euros and the Olympics a good testing ground for your in-house platform?

NA: We are taking a cautious approach. We have an agreement with Kambi for three years, which only started in January, so we can take a measured approach with the KSP regarding rolling out. We don’t expect to roll out into new markets before the Euros, but rather, we’re looking at a phased rollout post-Euros. As you can imagine, these are important events for us and the most important period of the year, so we don’t want to risk anything.