Kindred Announces End of Operations in Poland
Kindred Group, the parent company of gambling brands such as Unibet, has decided to cease its operations in Poland. This decision aligns with its strategy, following the acquisition by Française des Jeux (FDJ), to focus on regulated markets with clear legislation. The withdrawal comes in response to Poland’s strict gambling laws and legal disputes with STS, the country’s largest bookmaker.
Kindred had previously ended its poker, online casino, and bingo offerings in Poland and has now decided to stop providing sports betting services as well. Due to Poland’s stringent gambling regulations, it is challenging for international operators without a local license to legally establish themselves in the market, hence leading to Kindred’s decision.
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Focus On Regulated Markets
The legislative changes implemented in 2016 granted the state, through Totalizator Sportowy (STS), a monopoly on online casino games, whilst sports betting allowed for slightly more flexibility. However, online casino operators are required to adhere strictly to local regulations. This led to a conflict for Kindred, which, operating through Unibet, had been engaged in a legal dispute with STS since 2021. STS accused Unibet of violating Polish gambling laws by targeting Polish players with marketing campaigns, telemarketing, and gambling advertisements without a valid license.
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Kindred’s Aim To Minimise Legal Complications
Kindred’s decision to withdraw from Poland has been strongly influenced by its recent acquisition by French gambling giant Française des Jeux. Under its new ownership, the company is shifting focus to markets with clear and well-defined regulations.
This strategic move is designed to reduce the risk of legal issues in regions with less transparent rules. However, Kindred acknowledged that leaving markets where it lacks a local license will have financial repercussions. The exit from Poland is expected to impact its EBITDA targets, a key performance metric reflecting earnings before interest, taxes, depreciation, and amortisation, which is often used to assess operational profitability.
This decision comes on the heels of Kindred’s earlier withdrawal from Norway, following the loss of both a legal case and an appeal in the country.
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About Kindred Group
Kindred Group is one of the world’s biggest online gambling operators with a broad international footprint, spanning from its home base in Sweden to markets across North America and Oceania. The company is a publicly traded company listed on the Nasdaq Stockholm Large Cap. Unibet offers a diverse range of gambling options, including a sportsbook, online casino, live dealer games, online poker, and online bingo.
Founded in 1997, Kindred serves over 30 million customers worldwide. Its extensive portfolio includes the flagship brand Unibet and eight other prominent brands, such as 32Red Casino and Vlad Cazino. Unibet also operates in Australia and New Zealand. It uses a local Australian licence to offer its gambling products in Australia whilst it works with its European licence to target Kiwis.
Française des Jeux completed its acquisition of Kindred Group in early October for €2.46 billion, approximately NZD 4.42 billion. In the official announcement, FDJ stated that the acquisition of Kindred would create a European leader in gambling and gaming.
On 25 October, Kindred released its financial results for the third quarter of 2024. The parent company of Unibet reported revenue of £294.5 million (NZ$589 million) for the quarter, marking a 4% increase compared to the same period last year.
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