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Gambling Insider has received confirmation of the group’s intent to cancel ongoing licence applications and cease all operations in Germany effective 1 July.
In explaining the decision, Kindred blamed a cumbersome licensing process and overly restrictive regulatory environment, though it acknowledged this may change.
“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,” said Kindred in quotes sent to Gambling Insider.
“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.”
Kindred has for more than two years been mired in the licensing process for Unibet but said, in that time, has shifted its strategic priorities elsewhere.
“As a result of the lengthy sportsbook licence application process in Germany, which has been going on for over two years, we have put more focus on strategic projects elsewhere,” added Kindred.
“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’.”
Kindred called the financial impact of its departure “insignificant” owing to the company’s limited operations in Germany.
