In a sector that has long grappled with its social impact, the online gambling company Kindred has made significant progress in its efforts to curtail harmful gambling practices. The latest report for the fourth quarter reveals that revenue from harmful gambling accounted for only 3.1% of the company’s total intake during this period. This marks a downward trajectory from the previous quarters of the year, where Q3 and Q1 saw a measurement of 3.3% and aligns with the 3.1% observed in Q2.
The numbers, reflecting activity from the entirety of Kindred’s varied brands including popular entities such as Unibet and 32Red, indicate an ongoing commitment towards creating a safer gambling environment. This dedication is bolstered by the fact that Kindred has consistently carried the mantle of corporate responsibility, with its latest quarter showing an encouraging trend in player behavior.
Kindred’s interventions seem to have a material positive impact with 87.4% of engaged customers exhibiting improved gambling habits following the operator’s involvement. This quarter’s statistics are not only the best for the year 2023 but also a continued improvement from the 86.7% in Q3, 86.4% in Q2, and a notable jump from 83.0% in Q1.
The company attributes this positive momentum to its unyielding commitment and the collective effort of its team. Alexander Westrell, Kindred’s director of communications, emphasized that addressing revenue derived from harmful gambling requires perseverance and a long-term strategic outlook. “Our Journey towards Zero data has shown a steady decrease since 2020,” Westrell highlighted, adding, “Since Q3 of 2021, healthy gambling behavior following interventions has improved from 64.9% to 87.4%. Our transparent reporting and consistent work underscore our company-wide commitment and integral philosophy.”
Kindred’s transparency is not a new endeavor. Since February 2021, the company has made it standard practice to publish details about revenue from harmful gambling and the effectiveness of their intervention strategies. These updates, released quarterly, are part of a larger crusade named ‘Journey to Zero’—an ambitious project aimed at eliminating revenue from harmful gambling altogether. Even though this goal was not reached by the 2023 target, the company remains resolute in its cause.
The revelation of these figures coincides with recent headlines regarding a substantial acquisition bid by La Française des Jeux (FDJ). The proposed takeover, valued at roughly SEK27.96bn, promises to meld Kindred with one of Europe’s gaming giants, potentially forging an industry behemoth expected to achieve accelerated revenue growth and increased earnings. FDJ envisions the creation of a “European gaming champion” should the deal materialize.
Amidst the talks of acquisition, Kindred also released a preliminary set of results for its 2023 financial year which gave stakeholders reasons for optimism. The figures suggested a heartening uptick in year-on-year revenue, climbing 13.3% to £1.21bn, as opposed to £1.07bn in the previous year. The underlying EBITDA for the financial year is also projected to witness a substantial increase, estimating a rise of 58.3%.
This financial success, combined with strides in responsible gaming, reflects a broader shift in the online gambling industry towards sustainability and ethical operation. Kindred has not only set benchmarks but has also indicated that profitability and social responsibility can indeed go hand in hand. The company’s strides in reducing harmful gambling revenue showcase a commitment to their players’ wellbeing, even as the corporate landscape continues to evolve.
