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Kindred harmful gambling revenue edges up in Q1

| By Robert Fletcher
Kindred Group reported a quarter-on-quarter rise in the percentage of revenue it generates from harmful gambling in Q1, while there was also a drop in improved customer behaviour after intervention.
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In its latest Journey Towards Zero report, Kindred said harmful gambling accounted for 3.2% of all revenue in Q1. This was up from 3.1% in Q4 last year but less than the 3.3% in Q1 of 2023.

The rate refers to activity across all Kindred brands during the 90-day period from 19 March 2023 to 18 March 2024. Kindred operates several major online gambling brands such as Unibet and 32Red.

Alongside the rise in harmful gambling revenue share, Kindred also reported a slight drop in the percentage of players whose behaviour improved after intervention. 

Of those detected players contacted during the period, 87.1% showed improved behaviour. This was higher than 83.0% in Q1 of 2023 but lower than the 87.4% noted in Q4. 

However, Kindred was largely upbeat about ongoing intervention efforts. The group noted a “sustained” trajectory in the improvement effect after interventions when looking at an extended period. The 87.1% rate reported in Q1 was higher than 86.4% in Q2 of 2023 and 86.7% in Q3.

Kindred urges more regulatory support

Reflecting on the latest report, Alexander Westrell, director of communications at Kindred, said there is more work to be done in terms of reducing harmful gambling revenue.

Westrell also took the opportunity to encourage more collaboration between operators and regulatory authorities to tackle harmful gambling, 

“We continue to see our share of revenue from high-risk players fluctuate quarter to quarter and we are working closely with all teams across the company to support customers towards a more sustainable gambling experience,” Westrell said.

“However, it is encouraging to see our Journey Towards Zero data has steadily decreased since 2020. A similar trend can be seen across the healthier gambling behaviour effect after interventions. 

“This tells us two things: our work is paying off, but we need to continue to push ourselves to propel a sustainable progression. 

“We hope to see more regulators engage with the industry and with experts to secure a more sustainable industry for everyone.”

Kindred began publishing details of harmful gambling revenue and improvement effect after interventions in February 2021. Updates continue to be released every quarter.

Work continuing on FDJ-Kindred deal

The report comes with Kindred’s future still very much in the balance. 

Earlier this year, La Française des Jeux (FDJ) tabled an offer to acquire Kindred. The proposal from French lottery and gaming giant FDJ is worth SEK27.96bn (£2.07bn/€2.40bn/$2.56bn).

FDJ said the deal would create the second largest operator in Europe, billing the combined business as a “European gaming champion” with stronger revenue and earnings growth.

Work continues on the proposed deal, with FDJ in February publishing the public tender offer document for the acquisition. This effectively kicked off an acceptance period, which will run through to 19 November. 

The Kindred board has already unanimously recommended shareholders accept the offer, while the FDJ board is backing the proposal.

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