Kindred Group Makes Strong Netherlands Sports Betting Start
The Kindred Group are seeing strong growth in the Netherlands, with 30,000 active users acquired in the first 16 days after a mandatory ‘cooling off’ period. The company was forced to sit out the regulated market launch date in October as punishment for accepting Dutch players without a licence.
Kindred’s Netherlands Sports Betting Operations Enjoy Strong Start © Pixabay.
Kindred’s CEO Henrik Tjärnström has said the Unibet.nl brand had exceeded expectations after the sports betting brand acquired 30,000 active users in the first 16 days of operation.
The company were forced to miss out on the lucrative 1 October regulated market launch day and could only watch as ten licensed operators made gains. Moreover, the company’s entry into the strategically important market was delayed by 276 days as punishment for accepting Dutch players in the past.
However, that punishment expired on 4 July, and Unibet.nl was able to recruit and service Dutch customers as the region became Kindred’s 20th locally licensed market and one of the most important territories.
Kindred had been accepting Dutch sports betting and casino customers for over 20 years as a ‘grey market’, but the company was hit with a massive €470,000 Dutch regulator fine in August 2019. The Dutch Gaming Authority said its research showed that Unibet was offering online gambling products between August to September 2018.
According to the KSA: “It was possible to pay with the Dutch payment method iDEAL and a Dutch-language chat service was available. Furthermore, the terms and conditions on the site included a list of countries whose residents were excluded from participation. The Netherlands was not listed here.”
Along with the fine, the country’s legislation meant Kindred would be prevented from applying for a Dutch licence for two years after the time they were found to have actively targeted the Dutch market. Therefore their ban meant they had to sit out the launch of the regulated gaming industry in the country,
When Kindred finally launched in the Netherlands, it was from a standing start as the company could not use its old customer database from the grey days. Instead, it had to start customer acquisition from scratch. However, despite limited marketing expenditure and a quiet time in the sporting calendar, the company achieved an average of £150,000 in gross winnings revenue per day for the first 15 days of operation.
If the company at least maintains this level, it should net them £13.5m in revenue per quarter. However, Kindred are keen to highlight the figure of £150,000 is an average and the daily figure is on an upward trajectory.
The operator also believes customer satisfaction with their Dutch offering is above industry levels. According to surveys the company has performed on its customer base, 92% had their expectations met or exceeded.
During Kindred’s earnings call last Friday, CEO Tjärnström said the company is the only licensed operator with individual apps in the App Store for three separate verticals (sports betting, casino and poker).
Tjärnström has promised to deliver another update on the group’s Netherlands performance at Kindred’s Capital Markets Day in London on 14 September. During the event, Tjärnström and his senior team will present the company’s strategic direction and the company’s markets, products and financial results.
