This Week's Sports Betting Update

Hello, this week's edition of our newsletter is sponsored by ICE 2024 , which returns to ExCel London February 6-8, 2024. Grab a coffee, take five minutes and we’ll fill you in on everything you need to know from this week.

One big story?

Kindred Group announces its full exit from the North American market

Kindred Group Plc has confirmed its intention to exit entirely from all North American iGaming markets. The decision was taken following an ongoing strategic review from the firm’s new senior leadership team.

Subject to regulatory approval, Kindred aims to complete its exit by the end of Q2 2024. The Stockholm-listed iGaming operator has sought to realise ￡40 million in cost savings.

Exiting from iGaming markets where it has a thin market share is of paramount importance. Kindred will instead focus on bolstering its performance in markets where there is clear potential to grow its revenue.

Kindred’s Unibet US brand will exit from the Canadian market, as well as the American states of Pennsylvania, New Jersey, Virginia, Arizona and Indiana. The announcement was made briefly before the publication of Kindred’s Q3 2023 trading update, which saw year-to-date revenues rise 18% to ￡897m.

Discover the projected EBITDA for Kindred Group in FY2023, as well as the firm’s estimated compound annual growth rate (CAGR) during the next five years.

What you need to know

Commercial

• ???? The sports betting handle in New Hampshire reached seven-month highs in October, totalling $77.8m. Meanwhile, monthly revenue in October reached its highest figure since January. DraftKings is still the sole online sportsbook in New Hampshire, having obtained exclusive rights to serve citizens of the Granite State since November 2019. More
• ???? Australian online sportsbook Picklebet has raised an additional AU$15m following a Series A funding round. With expansion plans for 2024, DraftKings’ multi-stage venture capital arm, Drive by DraftKings, was one of several to invest as well as Manifest Investment Partners. More
• ?? PointsBet CEO, Sam Swanell, believes the online sportsbook is primed to deliver growth in FY2025. Following its recent exit from the US sports betting market, PointsBet is refocusing its efforts on the Australian and Canadian markets. The brand has also retained the rights to the Banach ‘Oddsfactory’ assets which can improve in-play and parlay betting, as well as cash-out functionality. More
• ???? Penn Entertainment’s ESPN Bet and theScore Bet brands have penned new deals with the NHL to become official sports betting partners. ESPN Bet becomes the official US sports betting partner with the NHL, while theScore Bet assumes the role of the NHL’s official sports betting partner in Ontario, Canada. More

Regulation

The UK Gambling Commission (UKGC) has opened its second round of consultations on proposals listed within the UK Gambling Act review white paper. The consultations, which run until February 21, 2024, will touch on five core topics, including socially responsible promotions, responsible gambling tools and contributions to Research, Prevention and Treatment (RET). More

Technology

Betting and gaming product development studio The Unit has unveiled a new bespoke front-end system for sports betting odds provider TXOdds. After a successful partnership to develop the front end of TXOdds’ Fusion Odds Data product, the new front end for TXOdds customers aims to set a new benchmark for trading interfaces. More

People news

Mark Howell appointed as new CFO of Tabcorp

Mark Howell will become the new chief financial officer of Tabcorp Holdings, subject to regulatory approval. Howell is expected to assume his new role by June 2024, stepping in for Daniel Renshaw, who left the firm in August.

Damien Johnston remains the interim CFO and will continue to be so until Howell’s formal arrival. Howell will join from Coles Group, where he’s assumed the position of general manager for liquor finance and network optimisation.

Click here to get the thoughts of Tabcorp managing director and CEO, Adam Rytenskild, on Howell’s appointment, as well as insight on the firm’s recent declining revenues.

This week's talking point

The stark contrast between Japanese and British horseracing betting markets uncovered

A recent Racing Post interview with Yuichi Goto, head of planning at the Japan Racing Association’s (JRA) international department, has demonstrated the growing chasm between the horseracing betting experiences in Japan and the UK.

When British visitors to Japan’s racecourses inquire about affordability checks, they are usually met with blank faces by those affiliated with the JRA.

Mr Goto reinforced the Japanese position on horseracing betting, insisting deciding who can and can’t afford to bet is wholly a matter for the individual or their loved ones. Goto insists the JRA will not intervene, leaving the responsibility firmly in the hands of the customer.

Although Japan’s strict regulatory framework on betting is steadily easing, with the authorisation of online football and basketball betting in 2022, horseracing is comfortably the most popular sport to bet on in Japan. Its turnover hit ￡25.38 billion in 2019, which is more than the combined turnover in the UK and Hong Kong, Japan’s closest rivals in terms of market size.

Learn more about how Japan’s horseracing industry has successfully maintained bettor engagement since the global pandemic.

This week's insight

What’s the key to maximising the opportunities within the Brazilian and LatAm markets?

Insecurity remains within the operator space despite the recent expansion of iGaming markets in Latin America. That’s the view of Galina Bineva, commercial director of OKTO, who was recently interviewed on the LatAm and Brazilian landscape today and in the years to come.

With regulatory conditions seemingly fast-moving in this corner of the iGaming world, Bineva insists iGaming brands with a long-term outlook on this market must be equipped with solid partners and robust payment technologies, delivering the efficiencies that bettors demand.

Bineva pointed to OKTO’s unified payment network across Latin America, enabling one-time integrations for merchants keen to operate across multiple jurisdictions. A payment platform with local knowledge of the most popular payment methods is key to building trust with customers and integrity in new brands.

Click here to learn more about the rise of ‘phygital’ payment methods, including OKTO’s cash-to-digital option that’s proving particularly popular in LatAm markets.

Enjoy this newsletter? If so, let us know what you would like to hear more (or less) about here . We value your feedback to provide the most informative weekly newsletter in the industry.?

Was this forwarded to you by a friend or colleague? Sign up here to get your own copy of the news that matters sent to your inbox every week.