Kindred’s Unibet Quits German Market
The Kindred Group has confirmed that it has withdrawn its application for a German licence. The Group, whose brands include Unibet, will cease operations on 1 July. The operator expects an”insignificant” financial impact due to the decision.
Unibet Ceases German Operations © Pixabay.
Stockholm-listed operator, the Kindred Group, has confirmed that it has withdrawn its application for a German licence and will exit the market on 1 July.
Tabloid newspaper Bild first reported last Thursday that Kindred’s Unibet sportsbook was leaving the German market, and the operator has since confirmed the move.
In a statement, they confirmed the decision to remove both the Unibet sportsbook and its virtual slots licence applications. The company said it made the “difficult decision” due to the increased demands imposed by the Fourth Interstate Treaty On Gambling which came into effect in Germany in July last year.
“Our long-term strategic direction sets out locally regulated markets as the core engine for our growth, however licence application procedures, licence conditions, and the regulatory environment need to be transparent, sustainable and financially viable for a market to be competitive,” the operator explained.
“The current application procedures, as well as the terms and restrictions in specific product offerings, means that the overall conditions are not sustainable and competitive against the unlicensed offering.
“Therefore, we do not see a foundation for long-term shareholder value and customer experience at the moment. However, we appreciate that this position may change in the future,” the company added.
However, the company doesn’t believe the withdrawal will hurt them financially, calling the impact “insignificant”.
Kindred’s decision to withdraw the Unibet sportsbook from the German market is the second time they have ceased operations in a year. In September 2021, the company pulled Unibet Poker from Germany in response to a prohibitive 5.3% turnover tax on online poker.
The same 5.3% tax on turnover is applied to slots, forcing operators and suppliers to reduce the return-to-player (RTP) rates to 90%. The Fourth Interstate Treaty On Gambling also restricted the number of events operators could offer in-play betting for. Also, a blow for the industry was the introduction of a €1,000 monthly cap on deposits.
Although the process to obtain a German licence is lengthy, estimated to be two years, Kindred has suggested it would concentrate on other strategic projects that it believes will be more suited to its long-term business objectives.
“We are dedicating full attention to growing our North American market, achieving greater product control with the Kindred Sportsbook Platform and the acquisition of Relax Gaming, expanding our single platform vision, and achieving our ‘journey towards zero’,” the operator added.
Another voice speaking out over the new regulations in Germany is Entain’s head of regulatory affairs, Martin Lycka.
In an op-ed published on the company’s website, Lycka said the player protection requirements introduced in Germany are “neither effective nor necessary” and will not achieve the intended goal.
“What they achieve, instead, is the creation of a wholly unfulfilling gaming experience for customers, rendering the measures counterproductive to their stated aim of channelling players towards licensed and legal providers,”
“Far from opening up the market, this is a gaming revolution built on sand,” Lycka added.
