Online gaming operator Kindred Group has announced plans to exit the North American market by the end of the second quarter of 2024. In addition to this move, the company also revealed that it will be focusing on its core markets to drive growth and implementing cost-saving measures that will result in a reduction of over 300 employees in 2024.
The decision to withdraw from the North American market comes after the company reported a loss of $18 million in 2022, coupled with a significant drop in gross gaming revenue to $5.3 million, representing a 38% decrease from 2021. As a result, Kindred Group initiated the process of pulling out of North America in December 2022.
This strategic move is part of the company’s efforts to reallocate resources, restructure its organizational setup, and redirect marketing investments and technology resources to targeted markets. Nils Andén, Interim CEO of Kindred Group, emphasized the necessity of the cost reduction actions, stating that while it was not ideal to make redundancies, it was crucial to strengthen the company’s position in its core markets.
In addition to exiting the North American market, Kindred Group is also reportedly pulling out of Norway by the end of 2023 following a dispute with the country’s gambling regulator, Lotteritilsynet. The conflict arose in 2019 when the regulator ordered Kindred’s subsidiary, Trannel, to cease operations and imposed a daily fine on the operator. After legal battles and appeals, the Borgarting Court of Appeal ruled in favor of the regulator, leading Kindred to withdraw from Norway as well.
Overall, Kindred Group’s decision to exit specific markets and reduce its workforce is aimed at refocusing its efforts on core markets and achieving long-term growth in the online gaming sector. This strategic realignment reflects the company’s commitment to driving sustainable and profitable operations in the face of challenging market conditions.