Posted on: November 29, 2023, 05:38h.
Last updated on: November 29, 2023, 05:38h.
Kindred Group (OTC: KNDGF) announced today that it’s leaving the North America market and cutting 300 jobs, which could lead to a potential sale of the Swedish gaming company as indicated by industry experts.
The company’s exit from North America is anticipated to be done by the end of the second quarter of 2024. This comes after its Unibet brand, which caters to European bettors, struggled to make an impact in the US and is currently active in only five states.
Kindred will also be reducing its workforce by over 300 employees, including those in North America, resulting in significant cost savings of approximately GBP 40 million ($50.51 million).
Nils Andén, interim CEO of Kindred, referred to the cost-cutting moves as “necessary and decisive,” explaining that this will allow the company to focus on its main markets.
Kindred Could Be Takeover Target
Strategic reviews often lead to speculation of a possible sale, as is the case with the Unibet parent company.
The possibility of potential takeover offers for Kindred from MGM Resorts International and a UK-based gaming entity emerged in reports back in July, indicating that a deal could be on the horizon.
There have been rumors of US and UK operators considering a buyout of Kindred, hinting at potential acquisition moves in the industry.
Another One Bites the Dust
Kindred’s exit from North America adds to the list of foreign companies that have struggled to gain traction in the US sports wagering sector, signaling the intense competition within the market.
Since the landmark 2018 Supreme Court ruling, only a handful of foreign operators have achieved notable success in the US, with FanDuel and BetMGM being among the few that have made an impact with their American operations.