The Kindred Group, a major player in the world of online gambling, has made a significant announcement that has caught the attention of industry experts and enthusiasts alike by leaving the US.
As of late 2023, Kindred has decided to withdraw from the US market, a move confirmed by their Interim CEO, Nils Andén.
This decision comes after a detailed strategic review initiated on April 26, 2023, underscoring the company’s commitment to refocusing its efforts on markets where it sees potential for growth.
Continue reading more below if you want to learn about Kindred’s US exit.
Why is Kindred Leaving the US?
- Strategic Exit Announced in 2023: Kindred Group, including its Unibet brand, decided to leave the US market by Q2 2024, a decision driven by financial reasons and strategic realignment.
- Impact on Workforce and Operations: Over 300 roles across Kindred, including in North America, will be reduced, aiming to streamline operations and focus on growth in core markets.
- Broader Industry Implications: Kindred’s departure highlights the competitive challenges in the US online gambling industry, potentially influencing market consolidation and the strategies of other operators.
Primarily motivated by financial reasons, Kindred plans to complete its exit from the US market by the end of the second quarter of 2024.
Despite their best efforts, Kindred’s US operations, including the Unibet brand, have been struggling. With operations in states like Arizona, Indiana, New Jersey, Pennsylvania, and Virginia, Unibet has faced challenges in gaining significant traction.
This struggle has been costly, prompting Kindred to redirect its resources towards more profitable ventures.
A notable consequence of this strategic shift is the layoff of Kindred’s workforce by over 300 roles, impacting various departments, including their North American segment.
According to Patrick Kortman, Kindred Group’s CFO, these cuts are necessary for streamlining operations and focusing on key growth initiatives.
This downsizing is expected to save Kindred approximately £40 million in gross costs, as they aim for an operating expense target of around £245 million for 2024.
Kindred’s future now lies in strengthening its position in core markets.
This involves reallocating financial and technological resources to support growth initiatives, such as introducing hyper-local casino brands and investing in strategic projects with promising growth opportunities.
The company’s decision to exit the US market is seen as a strategic realignment, prioritizing long-term growth in markets where they have a proven track record.
The Broader Impact on the US Gambling Scene
Kindred’s exit from the US market is a notable event in the online gambling industry. It highlights the intense competition and challenges that even established operators face in the US market.
Kindred’s withdrawal might also pave the way for potential sales or mergers, as industry giants like MGM Resorts International and UK-based entities like Flutter Entertainment and Entain Plc have opportunities to expand their European market share.
For American online gamblers, Kindred’s departure is a reminder of the dynamic nature of the online gambling industry. It emphasizes the importance of staying informed about the operators available in their region and understanding the market’s ever-evolving landscape.
With fewer options, players might need to look for new platforms to place their bets, underscoring the need for research and due diligence in choosing reliable and trustworthy online gambling sites.
Kindred Group’s exit from the US market is a strategic decision reflecting the realities of the competitive online gambling industry. As the company refocuses on its core markets, it leaves behind a landscape that is constantly evolving, challenging operators and players alike to adapt and stay informed.
For those interested in the online gambling scene, Kindred’s move is a significant development, highlighting the importance of strategic flexibility and market responsiveness in this fast-paced industry.
Weekly News: Kindred calls time on doomed US venture https://t.co/5KjU4UZTRL
— Nico Jansen (@nijansen9) November 30, 2023
Kindred Group is a major online gambling operator, known for its Unibet brand, operating in various international markets.
Kindred is leaving the US due to financial challenges and to refocus on markets with growth potential.
Kindred announced its departure from the US market in late 2023.
Nils Andén is the Interim CEO of Kindred Group.
The review was initiated to assess and realign Kindred’s focus on more profitable markets.
Unibet, under Kindred, struggled to gain traction in US states like Arizona, Indiana, New Jersey, Pennsylvania, and Virginia.
Kindred plans to reduce its workforce by over 300 roles due to its strategic shift.
Kindred aims to save around £40 million in gross costs with its workforce reduction.
The exit highlights competition challenges and may lead to market consolidation or sales.
Companies like MGM Resorts International, Flutter Entertainment, and Entain Plc might expand their market share in Europe.
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