The group initiated a strategic review in April to reduce costs, potentially leading to the full or partial sale of the business. As part of this review, Kindred has decided to exit the North American market. The process will begin immediately and is expected to be completed within six months, pending regulatory approval. By exiting North America, Kindred aims to reallocate financial and tech resources to its existing core markets, improving its ability to capitalize on market potential and gain market share. Presently, Kindred operates in several US states, including Pennsylvania, New Jersey, Virginia, Arizona, Washington State, and Ontario in Canada.
As part of the wider strategic review, Kindred announced that it will be cutting over 300 jobs across the business, including employees in North America and consultants. These job cuts, scheduled for next year, will allow Kindred to streamline its organizational structure and focus on selective growth initiatives. In conjunction with the North American exit, the company expects to save approximately £40.0m (€46.2m/$50.8m). These cost savings will help support additional initiatives in core markets, such as brand extensions of hyper-local casino brands and the development of exclusive content.
Nils Andén, the interim CEO of Kindred, stated that the cost reduction actions are necessary for long-term growth in Kindred’s locally regulated core markets. He emphasized that the company can now concentrate its resources and tech capacity on strategic initiatives and chosen markets with strong potential for market share growth.
In addition to the North American exit, Kindred will also be exiting the Norwegian market, completing the process by the end of this year according to Norway’s regulator Lotteritilsynet. This decision follows a prolonged battle between Kindred and the regulator, which began in 2019 when Trannel, a subsidiary of Kindred, was ordered to cease operations in Norway. Despite legal challenges, the Borgarting Court of Appeal ultimately upheld Lotteritilsynet’s cease and desist order against Kindred.
