The leading online gambling operator, Kindred Group, plans to withdraw its flagship brand from the German market, a new report suggests.
Kindred Unveils Plans to Withdraw Unibet from Germany
Unibet, Kindred Group’s leading flagship brand, plans to withdraw from the German market, according to a new report released by SBC. The brand is expected to exit the market, effective as of July 1, 2022. The announcement comes just ahead of Germany’s Fourth Interstate Treaty on Gambling (GlüNeuRStV), which is planned to come into effect on July 1.
Kindred revealed that while it plans to withdraw Unibet from Germany, at the same time, the company will seek to expand in North America. The company acknowledged that the market in Germany under the GlüNeuRStV regime won’t be “sustainable and competitive against the unlicensed offering.”
“However, license application procedures, license conditions, and the regulatory environment need to be transparent, sustainable, and financially viable for a market to be competitive.”
Additionally, Kindred pointed out that for a competitive market, the license conditions, license application procedures, as well as regulations, need to be more transparent. What’s more, the company explained: “Our long-term strategic direction sets out locally regulated markets as the core engine for our growth.”
Acknowledging that currently, it doesn’t see long-term shareholder value for the market in Germany, Kindred said that its position may change in the future. With that in mind, the company predicted that the withdrawal of Unibet’s operations in Germany won’t have a significant financial impact.
The Company Completed Key Objectives Recently
Focusing on growth in North America and withdrawing from the German market marks a strategic move for Kindred. Without any doubt, the ongoing expansion of sports betting to more US states will fuel Kindred’s growth.
Earlier this week, Kindred received two awards for its two-year All Employee Share Plan (AESP). The innovative plan was introduced by the company along with its long-term business strategy in 2021.
Before that, Kindred revealed that it was granted a gaming license in the Netherlands. This marked another successful step as a part of the company’s markets strategy. Kindred received its license from Kansspelautoriteit (KSA), the Dutch Gambling Authority. Commenting on the announcement, the company’s CEO, Henrik Tjärnström, revealed that the Netherlands represents an important market. He explained Kindred is looking “forward to operating in with a local license.”