Kindred Group Unibet is a major player in the NJ online casino and sports betting scene. Recently, it has announced its decision to withdraw from the US markets, significantly impacting New Jersey’s gambling landscape. Based in Malta, the operator’s departure is significant as it will leave both the NJ sports betting and NJ online casino industries. According to our research at Jersey Casinos, there’s an expected timeline for this exit. It’s set for the second quarter of 2024, signaling a notable shift for local online gamblers.
Let’s take a closer look at what this move entails for Kindred Group, the gaming community, and the market at large.
The Kindred Group Unibet exit from the US market happens not even six months after the Kindred Unibet NJ platform launch. However, this is a strategic move, expected to save the company around $50.5 million. This decision, particularly Unibet Casino NJ’s departure, aligns with Kindred Group Unibet’s focus on core markets and cost reduction initiatives. As part of this restructuring, it’s anticipated that over 300 jobs will be cut.
Nils Andén, CEO of Kindred Group, has expressed that this strategy is aimed at positioning the company for sustainable long-term growth.
“The cost reduction actions announced today are both necessary and decisive […] While it is never a desire to inform valued colleagues of redundancies, this puts us in a stronger position to secure long-term growth for Kindred across our locally regulated core markets. We can now focus our resources and tech capacity towards strategic initiatives and selected markets where we see clear potential to grow our market share.”
Nils Andén, CEO of Kindred Group
In New Jersey, Unibets operations under the Hard Rock license will be notably impacted, reshaping the state’s gambling industry.
Understanding the individual performance of operators in New Jersey can be challenging. However, our analysis reveals that Hard Rock’s online sports betting skins, including Unibet, generated $23 million in 2023. This figure, though significant, falls short when compared to the revenues of market leaders like Meadowlands Racetrack and Resorts Digital.
In contrast, Unibet Online Casino reported earnings of $54.5 million. It is a commendable figure but still modest besides the top NJ online casino operators who have surpassed $360 million in earnings. Unibet’s presence spans several states, including Arizona, Indiana, New Jersey, Pennsylvania, and Virginia, having withdrawn from Iowa in December 2022. However, with Kindred Group leaving more U.S. states, the impending closure of all Unibet platforms will undoubtedly leave a void in the market.
The full impact of Kindred Group Unibet’s exit on New Jersey’s gambling industry is yet to unfold, but it is poised to alter the competitive dynamics significantly.
