Kindred Group is exiting North America as it seeks to focus on growth in its core markets. [Image: Shutterstock.com]
A big step
Kindred Group has announced it is withdrawing from the North American gaming market following a strategic review. The Malta-based company hopes to complete this process by the end of the second quarter next year.
More than 300 consultants and employees will lose their jobs
Additionally, the company is implementing additional cost-cutting measures to focus on growth in its core markets. Part of the cuts will result in more than 300 consultants and staff losing their jobs, with Kindred hoping to save about 40 million pounds ($50.7 million) a year.
The company hopes to better utilize its resources to gain market share in other regions. Growth initiatives include expanding the reach of certain local casino brands, reallocating marketing and technology resources, and differentiating products through exclusive content.
Cost reduction measures
Nils Andén, interim CEO of Kindred Group the cost reduction measures as “necessary and crucial” He believes the changes will help the group strengthen its position and be positioned for long-term growth.
announced the start of a strategic review in April
The Kindred Group board announced the start of a strategic review in April. One of the triggers for this was a below-average year in 2022, in which both sales and net profit fell compared to the previous year. Henrik Tjärnström stepped down as CEO in May and Andén took over the position on an interim basis.
The review is ongoing and a partial or full sale is still in sight as the company’s board believes shareholder value can be maximized through a transaction with a third party. Andén said he would provide an update once the board makes a final decision.
Kindred’s Unibet brand has been operating in the United States for some time, offering sports betting and online casinos in certain jurisdictions. The company also has branches in the Canadian province of Ontario.
Kindred Group is one of the largest gaming companies in the world, serving the needs of more than 30 million customers. Numerous brands are represented under its umbrella, including Unibet, Maria Casino and 32Red.
The company is not only withdrawing from the North American market. Kindred has joined a number of other operators in leaving Norway after the country’s regulator took strict action against them.