The latest figures released by Kindred Group in their ‘Journey Towards Zero’ report reflect a complex picture of the online gambling landscape. According to the report, the first quarter (Q1) of this fiscal year saw the percentage of revenue derived from harmful gambling activities inch up to 3.2%, a slight increase from 3.1% in the previous quarter (Q4), but still below the 3.3% reported in Q1 of 2023. This uptick puts a spotlight on the ongoing challenge of ensuring responsible gambling practices across the industry.
Kindred, a prominent player in the digital betting and gaming market, operates well-known brands such as Unibet and 32Red. These figures encompass the period beginning 19 March 2023 and ending 18 June 2024, marking a critical 90-day window for the group’s operations.
In a less favorable turn, the report disclosed a minor dip in the rate of players showing improved gambling behavior following an intervention by the company. Out of those detected and reached out to, 87.1% exhibited positive behavioral changes, marking a reduction from the 87.4% peak noted in the previous quarter. However, this figure is still an improvement when compared to the same quarter of the previous year, which stood at 83.0%.
Kindred’s assessment of the impact of interventions over a more extended timeframe indicates a “sustained” positive trajectory, with the current rate surpassing the 86.4% and 86.7% improvement rates observed in the second and third quarters of 2023, respectively.
Addressing the report, Kindred’s director of communications, Alexander Westrell, underscored the necessity for continued efforts and industry-wide collaboration to mitigate the impact of harmful gambling. He acknowledged the quarter-to-quarter fluctuations in revenue from high-risk players, alluding to the need for an enhanced support framework to help customers navigate towards safer gambling habits.
Westrell pointed out the general decline in harmful gambling revenue since 2020 and the corresponding increase in healthier gambling behavior post-intervention as signs of progress owing to Kindred’s initiatives. He emphasized the dual message sent by these trends: the company’s strategies are effecting change, yet there remains a pressing need to maintain momentum and further bolster sustainable progress in the industry.
Furthermore, Westrell advocated for increased engagement between regulatory bodies and the gambling sector to build a more robust industry, where sustainability is at the core of every operation.
Kindred has been transparent in sharing information about harmful gambling revenue and the impact of interventions since February 2021, maintaining a quarterly cadence in updates to monitor progress and areas requiring attention.
The timing of this data release comes at a critical juncture for Kindred’s future, with potential ownership changes on the horizon. Earlier in the year, French lottery operator La Française des Jeux (FDJ) expressed its intention to purchase the Kindred Group. The acquisition, valued at SEK27.96 billion (approximately £2.07 billion/ €2.40 billion/$2.56 billion), would cement the conglomerate as Europe’s second-largest gaming entity – a ‘European gaming champion’ characterized by robust revenue and growth prospects.
Preparations for the proposed agreement are underway, with FDJ having already published the official tender offer document in February, thus opening the acceptance period which is slated to end on 19 November.
Kindred’s board has unanimously recommended that shareholders accept FDJ’s offer, an endorsement that is matched by support from FDJ’s board as well. As these corporate proceedings unfold, Kindred’s commitment to its ‘Journey Towards Zero’ goal of minimizing gambling harm continues, with industry observers and stakeholders closely monitoring the company’s strides toward a more responsible gaming ecosystem.
