Kindred Group’s Q3 Revenue Insights: Addressing High-Risk Gambling Concerns
In a recent announcement, Kindred Group revealed that revenue generated from ‘high-risk’ players reached 3.2% in the third quarter of 2023. While this marks an improvement compared to last year’s figure of 3.3%, it is also a slight increase from the 3% recorded in the prior quarter. This fluctuation highlights the ongoing challenges the online gambling operator faces in managing and mitigating high-risk player behavior, a concern that has become increasingly important in today’s gaming landscape.
The Journey Towards Accountability and Improvement
Since February 2021, Kindred has been committed to transparency regarding its revenue generated from harmful gambling practices. Regularly releasing reports, the operator sheds light on the state of player behavior within its platform and the effectiveness of its interventions. The data for the 90 days leading up to September 18, 2023, reinforces this commitment. Despite an overall increase in revenue from high-risk players, Kindred continues to focus on improving player behavior after interventions, which saw an impressive 87.3% of players demonstrating positive changes this quarter.
This figure exceeds both last year’s 86.7% and the previous quarter’s 86.8%, indicating that Kindred’s efforts to promote safer gambling practices are starting to yield results.
The Challenge of High-Risk Revenue
Esther Scheepers, Head of Responsible Gambling at Kindred, acknowledged the complexities surrounding their high-risk revenue figures. Despite the positive trend in player behavior, the rise in revenue from high-risk individuals remains a pressing challenge. Scheepers articulated the necessity for further advancements in the company’s behavioral harm detection and automated intervention systems.
“The rise in high-risk revenue presents a challenge in Q3, which reinforces the need for further advancements in our behavioral harm detection and automated intervention systems,” she explained. Her comments underscore a dedication to not only addressing current issues but also anticipating future challenges.
Innovations in Detection Systems for Safer Gambling
Kindred is actively working to refine its detection systems to better support at-risk players. Scheepers noted that the growing awareness of gambling disorders is paralleled by advancements in technology, necessitating continuous improvement in Kindred’s approach.
The company is currently upgrading its detection system, anticipated to integrate more robust compliance features and enhance the overall safer gambling strategy. “We are exploring opportunities to expand and refine our research initiatives, particularly in areas shaped by current trends and emerging issues in consumer protection,” Scheepers stated. This forward-thinking approach highlights Kindred’s commitment to evolving its practices in an ever-changing regulatory and consumer landscape.
Transitioning Under the FDJ Umbrella
As these efforts unfold, Commendably, this new data dissemination comes on the heels of Kindred’s recent transition into the La Française des Jeux (FDJ) group. In October 2023, FDJ successfully completed a €2.45 billion acquisition of Kindred, marking a significant shift for the company as it integrates into one of Europe’s largest gaming organizations.
In conjunction with this acquisition, Kindred recently shared a preliminary trading update for Q3, reporting a total group revenue of £294.5 million (€354.6 million/$382.4 million). This figure represents a 3.7% increase from the same period last year but is approximately 10% lower than the £327.6 million generated in Q2. Looking forward, FDJ anticipates a promising financial outlook, projecting a 16% year-on-year revenue growth for the remainder of 2024.
Conclusion: A Balancing Act Ahead
As Kindred navigates its new footing within the FDJ framework, the operator faces a dual challenge: managing high-risk revenue while continuing to prioritize responsible gambling. With a clear commitment to improving player welfare and refining intervention strategies, Kindred Group is on a path that embodies the complexities of operating in a high-stakes industry.
The ongoing commitment to transparency and improvement not only strengthens the company’s position as a responsible gaming operator but also sets a precedent for others in the industry. As the conversation around gambling responsibility evolves, Kindred’s ability to adapt and refine its strategies will be crucial in ensuring a balance between nurturing a profitable business and safeguarding its players against potential harm.
