Kindred Group exits Germany amid “unsustainable” market conditions
Stockholm-listed operator sees “insignificant” financial impact from exit as licence application withdrawn
Kindred Group has confirmed the withdrawal of its German licence application ahead of its formal exit from the German market on 1 July.
German newspaper Bild first reported that the group’s Unibet sportsbook was being withdrawn on Thursday, reports which have since been confirmed by the Swedish operator.
In a statement issued to EGR confirming the withdrawal of both the Unibet sportsbook and its virtual slots licence application, Kindred suggested its “difficult decision” was down to the demands imposed by the Fourth Interstate Treaty On Gambling (IST) which came into force in July 2021.
“Our long-term strategic direction sets out locally regulated markets as the core engine for our growth, however licence application procedures, licence conditions, and the regulatory environment need to be transparent, sustainable and financially viable for a market to be competitive,” Kindred explained.
“The current application procedures, as well as the terms and restrictions in specific product offerings, means that the overall conditions are not sustainable and competitive against the unlicensed offering.
“Therefore, we do not see a foundation for long-term shareholder value and customer experience at the moment. However, we appreciate that this position may change in the future,” Kindred added.
Kindred Group has said that its exit from the German market will have an “insignificant” monetary impact on the firm’s financials going forward.
The withdrawal marks the second such exit for Unibet, following the removal of its poker product, Unibet Poker, from Germany last September due to the prohibitive 5.3% turnover tax on online poker.
This same rate on turnover is applied to slots, resulting in operators and suppliers having to reduce RTP rates from around to around 90%, while in-play sports betting is restricted in the markets permitted and, moreover, there is a €1,000 monthly cap on deposits across the board.
Referencing the “lengthy” German sportsbook licence application process, which has taken more than two years to complete, Kindred suggested it instead chose to focus on other strategic projects more suited to its long-term business objectives.
“We are dedicating full attention to growing our North American market, achieving greater product control with the Kindred Sportsbook Platform and the acquisition of Relax Gaming, expanding our single platform vision, and achieving our ‘journey towards zero’,” Kindred added.