Green Jade Games

Former NetEnt commercial lead Mark Taffler has joined Green Jade Games as chief commercial officer to drive an increased awareness of the firm and its skill-based slots.

Taffler will be responsible for coaching casino partners and driving awareness of how Green Jade Games and its suite of innovative titles can significantly increase retention and boost revenues.

Prior to joining Green Jade Games, Taffler was head of commercial for NetEnt where held responsibility for over 120 customers and managed a team of 13 account managers.

Benedict McDonagh, managing director at Green Jade Games, said: “I am delighted to welcome Mark to the team and to tap into his unrivalled passion, talent and experience.

“Our games, a blend of arcade skill games and standard RTP slots, are truly unique and increase session times inexorably, driving loyalty and revenues for operators.

“With Mark on board, we will be able to engage more operators than ever before and make them aware of the tremendous upsides integrating our suite of titles brings.”

Kindred Group

Johan Wilsby is to join Kindred as chief financial officer later in the year, with an official date regarding the switch from Tobii, where he occupies the same role, to be finalised later in the year.

Previous CFO experience has been gained in positions at Fingerprint Cards and Transmode, with experience also gained via various finance leadership roles at Microsoft and Hewlett Packard.

“I am delighted and pleased to welcome Johan to the Kindred team. In addition to Johan’s capability in finance, his extensive experience from the digital industry will ensure he can engage in our operations from the start and be an important part of the management of the company”, noted Henrik Tjärnström, CEO of Kindred Group.

Scientific Games

Rich Schneider is to join Scientific Games in midway through next year as chief product officer, overseeing product strategy, defining R&D roadmaps and furthering the firm’s position in gaming.

Schneider will bring 30 years of experience in creating gaming products to the company, with recent experience coming in a CPO role at Aristocrat where he directed the creative studios, hardware development and product design. He also held executive roles at Walker Digital Table Systems, Acres Gaming, and numerous leadership roles at IGT.

“Rich’s expertise in design, development and gaming makes him the perfect complement to our Scientific Games leadership team,” explained Barry Cottle, Scientific Games president and CEO.

“Combining Rich’s expertise and creativity with our talented teams will bring industry-leading products and technology to our partners and their players.”

YGAM

The Young Gamers and Gamblers Education Trust has strengthened its senior leadership after confirming the appointment of Daniel Bliss as its head of external affairs.

Bliss joins the charity after working as part of the UK Gambling Commission‘s communications team for the last three years, where he was involved in a number of key projects, including major policy announcements and the launch of the National Strategy to Reduce Gambling Harms.

Lee Willows, co-founder and chief executive of YGAM, commented: “I am delighted to welcome Daniel to what is an agile, inspirational and committed team. He joins at a key point in the charity’s development as we scale to deliver the UK’s first national education programme with GamCare and supported by members of the Betting & Gaming Council which will see us collectively reach 7m young people over the next four years. Daniel brings valuable expertise to this dynamic role specialising in communications, marketing, public affairs and stakeholder engagement.

“His role at YGAM is to advance the organisation’s marketing and communications across all channels, and help drive the successful workshops and programmes supporting partnerships with commercial organisations operating in the gaming and gambling space. I am confident that in his role as part of the Senior Leadership team, he will play a crucial role in helping YGAM achieve its objectives.”

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SMP eGaming

SMP eGaming has strengthened its board of directors with the appointment of three new members, with Jade Zorab, Matthew Robins, and Karen Yates joining Ted Pepper.

Each is to be individually responsible for driving improvements and efficiencies in complementary areas of the business, with Zorab responsible for business development and strategy, Robins for licensing, risk and compliance services and Yates for corporate governance and managed services.

“I am delighted to welcome Jade, Matthew, and Karen to the SMP eGaming Board and congratulate each on being appointed as directors,” stated Ted Pepper, managing director of SMP eGaming.

“Each brings a wealth of experience, talent and skill to the board, and they will be key in driving SMP eGaming forward as we look to improve our products and services. I look forward to working closely with each of them as we continue to grow the business.”

Kindred Group

Albin de Beauregard is to step down from the role as chief financial officer at Kindred Group, with the process to find a new permanent replacement currently underway.

Beauregard is to depart the role during the first quarter of 2020 following eight years with the group, but will continue to oversee the closing of the current financial year.

Graham Stretch, former CFO at Kindred, is to provide support during the transition period and assist in the recruitment of a new permanent CFO.

“It is with regret that Albin has informed me of his intention to step down from his role as CFO to pursue new challenges outside of the industry, stated Henrik Tjärnström, CEO of Kindred Group. 

“Albin leaves Kindred in a strong position for future growth, and a professional team that provides a solid platform to support the group’s continued development.”

Games Inc

Online slots developer, aggregator and platform provider Games Inc has strengthened its team, after announcing the appointment of Jason O’Shea as commercial director.

Bringing over ten years experience, O’Shea will be responsible for the recruitment of new game studios and the distribution of Games Inc’s proprietary and studio partner content.

Furthermore, he is to also seek new strategic partnerships with operators,suppliers and small startups, and oversee a planned period of expansion as the company looks to its increase its footprint and distribution.

Lee Moore, co-founder of Games Inc, said: “We’ve always prided ourselves on hiring creative and dynamic individuals and Jason ticks those boxes. He has the experience and the skills to help take Games Inc into a new phase of expansion. We’re thrilled to have him on board.”   

Rank Group

Karen Whitworth has been appointed to the Rank Group board with immediate effect as a non-executive director, as well as serving on its audit, safer gambling and remuneration committees.

A qualified chartered accountant, Whitworth boasts 17 years of board level experience at both private and publicly listed entities, with responsibilities spanning commercial, operations and governance.

Alex Thursby, Rank’s chairman, noted: “We are delighted to welcome Karen to the Rank board. Her extensive background in finance and governance, together with significant broad business acumen, will be a real asset to the group.  The board and I are very much look forward to working with her over the coming years.”

Gambling.com Group 

Gambling.com Group, has bolstered its US growth strategy after appointing Max Bichsel to lead the company’s expansion into the sports betting market in the US. 

Before joining Gambling.com Group, Bischel served as the director of US sales for Kambi. His new role will include the development and expansion of Gambling.com’s partnerships with brands in the US market.

“With Max on board to lead our US efforts, the group will expand partnerships, marketing and sales efforts in America and continue to grow market share,” Charles Gillespie, Gambling.com Group CEO, said.

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The Swedish Gambling Authority announced the penalty in a statement on Monday. The penalty underscores the importance of operators complying with the nation’s anti-money laundering (AML) practices.

Spelinspektionen Flags Weak Spooniker Customer Due Diligence

Spooniker—which operated several online gaming brands under the Kindred umbrella—was issued a heavy fine and a formal warning. Spelinspektionen sanctioned the operator after finding that the firm’s customer due diligence processes were inadequate.

The source of the enforcement measures stems from the regulator noting that Spooniker failed to comply with identifying the sources of customers’ funds. Spelinspektionen maintained that this lack of oversight prevented the firm from assessing whether its users’ gambling activities were authentic or potentially linked to money laundering or financing terrorism.

“The company has not collected sufficient information about where the money comes from,” Spelinspektionen stated in its ruling. “Therefore, they have not been able to determine whether the customers’ activities were legitimate.”

The regulator clarified that the violations occurred before June 2024, when the country’s latest AML sanctions were enacted. As a result, Spooniker’s fine was limited to a maximum amount under the prior framework, equivalent to one million euros.

This is not Spooniker’s first brush with the Swedish regulator, either. In December last year, the company was fined $2.7 million after it was ruled to have offered its Swedish customers unauthorized bonuses and lottery products.

Ongoing Pressure on Gambling Oversight and AML Measures

Spooniker is popular with Swedish players as it holds licenses to operate platforms, including unibet.se, mariacasino.se, and storspelare.se. As a result, Swedes can play several online betting, bingo, and iGaming casino games across the firm’s product portfolio.

Aside from its recent fines, the Kindred subsidiary has an unfortunate history of flouting regulations.

However, after an incident in 2021, Spooniker successfully appealed a decision by the Swedish Gambling Authority regarding a breach of set deposit limits introduced during the pandemic.

Industry insiders claim the latest enforcement action is a consequence of wider sweeping regulatory crackdowns in the Swedish gambling sector. It follows Spelinspektionen fining three other operators – Glitnor Services, Roar Vegas, and Videoslots – a combined $5.2 million for violations related to problematic gambling protections.

Of these infringements, the most troubling was the discovery in their Glitnor audit that 10 out of 12 audited users were deemed to have not been provided satisfactory gambling support measures.

While Kindred Group’s ownership has recently changed hands, operating under the umbrella of France’s FDJ United, the pressure on gambling operators to conform is mounting. The clampdown on regulatory infringements is undoubtedly not limited to Swedish watchdogs either, as other countries, including the UK, focus on AML threats, too.

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Under the terms of the agreement, Spinomenal has offered a selection of titles to the Kindred-owned operator, increasing the visibility of its in-house content in the UK. 

The slot provider has leveraged its aggregation partnership with Light & Wonder to facilitate the integration, with the titles delivered via the latter’s OpenGaming platform. 

Adam Newnham, Commercial Operations Manager at Kindred Group, stated: “Our mission is to give 32Red players the very best casino experiences on the market and Spinomenal’s games portfolio will be a welcome addition to our offering.”

32Red’s player base will benefit from the collaboration by gaining access to Spinomenal slots such as Athena’s Glory, Poseidon’s Rising, Majestic King and Demi Gods 2.

Lior Shvartz, CEO for Spinomenal, added: “32Red has had long-term success in the UK market and we’re very happy to partner with such a prominent operator. We look forward to 32Red players enjoying our suite of titles.”

The deal adds to a busy period of online casino expansion for Kindred’s 32Red brand, having recently strengthened its lobby by gaining content from Peter & Sons. 

On that recent deal, Adam Newnham, Commercial Operations Manager at Kindred, said: “Peter & Sons is an extremely exciting studio who are not afraid to push the boundaries and experiment with strikingly original, even avant garde ideas. 

“The result is that each game is a work of art, and we can’t wait for our players to experience them at 32Red.”

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86%

iGaming Ontario (iGO) has once again reported total wagers of over CAD$18bn in its second quarter of 2024-25 fiscal year (Q3 2024), with online casino having an 86% share of the Canadian province’s total wagers.

From Ontario’s 51 operators with 83 gaming websites in Q2, iGO reported that total wagers for the quarter, not including promotional wagers (bonuses), stood at $18.7bn, a 1.6% increase in comparison to the previous quarter and a 31.7% increase year-over-year.

Total gaming revenue rose in comparison to the previous quarter and YoY, rising by 1.7% and 35.4% respectively to $738m. 

iGO stated that the total gaming revenue figure “represents total cash wagers, including rake fees, tournament fees, and other fees, across all Operators, minus player winnings derived from cash wagers and does not take into account operating costs or other liabilities”.

In Q2, iGO noted that over 1.32 million player accounts were active, with the average monthly spend per account being $308.

Per vertical, total wagers in casino (slots, live and computer-based table games and peer-to-peer bingo) stood at $16bn, 86% of the total during the quarter. Casino gaming revenue was $553m, 75% of the total gaming revenue.

Betting (sports, esports, proposition and novelty bets, as well as exchange betting) had a total wagers amount of $2.2bn, 12% of Q2’s total. Betting’s gaming revenue amounted to $167m, 23% of the total during the quarter.

€280.1m

Betsson reported a group revenue increase of 18% compared to the same period last year to €280.1m (Q3 2023: €237.6m). 

In constant currencies and adjusted for acquisition, revenue rose by 50.6% YoY. Share of revenue from locally regulated markets (€163m) increased to 58% (2023: €106m/45%). 

Licence revenue for system delivery to B2B customers stood at €66.7m (2023: €55.9m), with new customers added and further sportsbook trading capabilities achieved through the 2022 acquisition of KickerTech, in addition to improvements and investments in casino and sportsbook products.

Customer activity rose in the quarter, with deposits rising by 19.8% YoY and reaching an all-time high of €1.48bn (2023: €1.24bn). Registered customers grew to 31.1 million, up 5.9% (2023: 29.4 million), while active customers increased by 9.8% to 1,357,953 (2023: 1,237,238).

Betsson’s EBITDA rose by 17% YoY to €80.3m (2023: €68.9m), with a margin of 28.7% (2023: 29%). EBIT increased by 15% to €64.5m (2023: €56m), with a margin of 23% (2023: 23.6%). 

Net income fell slightly to €43.4m (2023: €46.2m), with earnings per share at €0.31 (2023: €0.35). Operating cash flow at the end of the quarter was €62.5m (2023: €44.9m), while net debt was €-128.3m (2023: €-65.5m).

“Yet again, new record levels in revenue and EBIT in the third quarter,” commented Pontus Lindwall, CEO of Betsson.

“The high customer activity continued during the third quarter with new record levels in customer deposits and gaming turnover. Yet again Betsson reports quarterly records in revenue and EBIT, which means the eleventh quarter in a row with sequential growth on the EBIT level.”

60%

Evolution CEO Martin Carlesund revealed the situation for the firm in Georgia is “stable” with its studio currently operating at around 60% capacity, a level that it hopes will remain after significant disruption caused by union strike action.

Updating investors, Carlesund revealed that the Georgian studio will not return to full capacity after the strike due to “instability”. Nonetheless, he added that with over 20 studios globally, they are able to offset lost capacity and limit the impact on their customers. 

Carlesund stated that Evolution “fully supports” the right of workers to be part of a union. However, after much dialogue with the union in Georgia, he described their demands as “simply unreasonable”.

He went on to accuse the unions and the media of spreading “a lot of disinformation and blunt lies”, emphasising the importance of them acting in line with legislation as well as union values. 

One of the key falsehoods that Carlesund stated had been spread was around the size of the strikes, as he stated around 300 staff were involved as it initially started, which caused minimal impact on the firm’s day-to-day operations. 

This then escalated according to Carlesund, when “a small number of non-employees and union activists illegally blocked the entrance to the workplace, behaving violently, vandalising the building and harassing working staff’, which caused “severe disruptions” and led to the “sad outcome” of them moving operations. 

“Naturally the outcome of this is not positive for customers” said Carlesund, who added that he recently met with regulators in Georgia who “see through the situation with the unions and base their judgements on facts and not social media”. 

98%

Groupe Française des Jeux (FDJ) has announced that its shareholding in Kindred Group has increased to over 98% following the conclusion of its public tender offer extension.

Earlier this month, the French gambling group completed its acquisition of Unibet and 32Red operator for nearly €2.5bn, a transaction that had been in the works since an offer of SEK 130 in cash per Swedish Depository Receipt (SDRs) was submitted back in January this year.

Following the end of the first settlement delivery of the offer on 11 October, FDJ held 91.77% of Kindred’s share capital, tendering 195,659,291 Kindred SDRs, representing 90.66% of the group’s capital, alongside acquiring 2,400,000 Kindred SDRs directly from Veralda, representing 1.11% of the group’s share capital.

However, at the time, FDJ extended its offer to 18 October to allow for Kindred shareholders who have not tendered their shares to do so on unchanged terms. With that date now passed, the group has announced that an additional 14,734,917 Kindred SDRs were tendered, representing 6.83% of the share capital.

Following settlement delivery of the extended offer, expected to take place on 29 October, FDJ’s shareholding in Kindred will therefore be 98.6%.

Since FDJ holds over 90% of Kindred’s share capital, the group intends to “request the implementation of the squeeze-out procedure” following Kindred’s articles of association to acquire all the shares not tendered in the public offer, delisting Kindred’s SDRs from Nasdaq Stockholm.

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It comes as the Unibet and 32Red operator also published its financial results for the third quarter of 2024, reporting increases in total revenue, gross winnings revenue (B2C) and active customers when compared to the same period last year.

Within the report, CEO Nils Andén noted that with the completion of Kindred’s acquisition by FDJ, the group will exit ‘.com’ markets “that don’t have a clear path to local regulation in the near future”, which will impact the company’s ability to hit its stated underlying EBITDA target of £250m.

In addition, Andén thanked investors for their support and praised the global Kindred team for their hard work as the group enters its next phase with FDJ.

Squeeze-out and delisting

Earlier this week, FDJ announced that its shareholding in Kindred had increased to 98.6% after an additional 14,734,917 Kindred SDRs were tendered, representing 6.83% of the share capital being added on top of the 91.77% it already had following the end of the first settlement delivery of the public tender offer on 11 October.

Since FDJ holds over 90% of Kindred’s share capital, the group has requested the implementation of a squeeze-out procedure, exercising its right to require all those shareholders of Kindred who have not tendered their shares pursuant to the offer, to transfer all their shares to FDJ.

Kindred said in a statement: “Each squeezed-out shareholder is hereby further notified that, in view of the exercise of the squeeze-out right by FDJ, each squeezed-out shareholder must transfer all its shares in the company to FDJ in accordance with the provisions of the articles of the company and the shareholder squeeze-out notice.”

In light of this, Kindred’s board of directors has applied for delisting of the company’s SDRs from Nasdaq Stockholm, with its last day of trading to be announced as soon as the date has been confirmed by Nasdaq Stockholm to the company.

Key markets support Q3 revenue growth

As previously mentioned, Kindred has also published its Q3 2024 financial results, noting that total revenue for the period has increased by 4% year-over-year to £294.5m (Q3 2023: £283.9m).

Andén attributed this growth to a strong performance being maintained across the company’s key markets. B2C revenue also rose by 3% YoY to £283.1m (2023: £274.7m).

The company’s number of active customers increased in Q3 as well by 9% YoY to 1,701,100 (2023: 1,563,762).

“The positive momentum gained throughout the first half of the year continued as we stepped into the final half of 2024, with key markets maintaining strong performance,” the CEO said.

“Total revenue for the third quarter was £294.5m, representing a 4% increase compared to the same period last year (5% in constant currency). Excluding North America, total revenue increased by 6% for the same period.”

Underlying EBITDA target

Kindred’s underlying EBITDA increased by 49% YoY to £63.4m (2023: £42.6m).

However, Andén also highlighted that Kindred’s exit from ‘.com’ markets that don’t have a clear path to local regulation will impact the company’s ability to reach its stated underlying EBITDA target of £250m.

Andén commented: “I am very pleased that our underlying EBITDA came in at £63.4m, reflecting an increase of 49% year-over-year. This represents an underlying EBITDA margin of 22% and demonstrates our scalable business model.

“The stellar performance and dedication from everyone at Kindred has resulted in a year-to-date underlying EBITDA of £196.3m. I am very pleased that we would be well on track to achieve our stated underlying EBITDA target for the full year 2024 of £250m.

“However, following the expected completion of Kindred’s acquisition by La Française des Jeux (FDJ), Kindred will exit .com markets (including Norway) that don’t have a clear path to local regulation in the near future. This action will negatively impact our ability to reach our stated underlying EBITDA target.”

Kindred’s profit before tax fell to £12.5m (2023: £15.1m) due to “significant strategic review costs of £30.9m (2023: £0.6m) in relation to the FDJ transaction”. Profit after tax was £9.6m (2023: £12.6m), which included a loss from discontinued operations of £0.4m (2023: £13.1m) and profit from continuing operations of £10m (2023: £25.7m). 

Earnings per share were £0.04 (2023: £0.06), while free cash flow amounted to £-4.2m (2023: £24.5m).

CEO thanks staff and investors

Andén ended Kindred’s Q3 report by looking ahead to the company’s future, noting that its focus on locally licensed markets is helping to produce “long-term, sustainable revenue”.

“Our strategic focus on growth in locally licensed markets continues to generate long-term, sustainable revenue,” he said.

“Year-on-year Gross winnings revenue from locally licensed markets has grown 4% versus the same period last year (7% excluding North America). France has sustained strong momentum, further driven by both the Euros and the home Olympics. In addition to France, we have seen very positive results in the Netherlands, Romania and Denmark during the period.”

“I’m thrilled that our in-house sportsbook development continues to progress according to schedule. Following successful launches in several smaller markets, we are now on track for our first locally licensed market launch later this quarter.”

As the company enters its next phase with FDJ, the CEO also took the opportunity to thank investors and praise Kindred’s staff for their “unwavering resilience and dedication”.

Andén concluded: “With the public offer by FDJ now completed, and as we transition into the next exciting phase in Kindred’s history, I would like to take this opportunity to thank investors in Kindred, both past and present. 

“Twenty years as a public listed company on Nasdaq Stockholm comes to an end. Together, we have made a significant contribution to the creation of a competitive, digital and sustainable online gambling industry. 

“Finally, I would like to take this opportunity to thank the global Kindred team for their unwavering resilience and dedication. Where one chapter ends, a new one begins.”

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Scheepers’ comments come as the 32Red and Unibet operator publishes its share of gross winnings revenue from high-risk players, and its improvement effect after interventions statistics, as part of its ‘Journey towards Zero’ initiative – its ambition to reach 0% revenue from harmful gambling.

For Q3, the group reported that its share of gross winnings revenue from high-risk players was 3.2%, up on the previous quarter’s 3% figure.

Kindred noted that while an increase has occurred, it continues to be “fully dedicated to lowering this share of revenue and continues to see a sustainable behaviour change from players after interventions”.

“The rise in high-risk revenue presents a challenge in the third quarter, which reinforces the need for further advancements in our behavioural harm detection and automated intervention systems,” commented Scheepers.

“Looking ahead, we recognise this need as well as to broaden our focus to ensure comprehensive coverage across more areas related to safer gambling. A key aspect of this future strategy is to build on the strengths, insights and knowledge gained from our proprietary detection system over the years.”

Kindred also reported that the percentage of detected customers who exhibited improved behaviour after interventions stood at 87.3%, up on the previous quarter’s 86.8% as well as the 87.1% figure reported during Q1.

The group noted that the improvement underscores its “ongoing commitment to not only identifying risk behaviour but also continuously refining the interventions applied to foster safer gambling habits”.

Scheepers added: “The general awareness and knowledge around gambling disorder is increasing rapidly, as is the sophistication of technological support tools. By combining our own knowledge with new and improved technology, we can enhance detection capabilities further. 

“We are currently upgrading our detection system with a new improved system, which will enable us to integrate more robust compliance features and optimise our overall approach to safer gambling. 

“Additionally, we are exploring opportunities to expand and refine our research initiatives, particularly in areas shaped by current trends and emerging issues in consumer protection.”

Earlier in October, Groupe Française des Jeux completed its acquisition of Kindred for nearly €2.5bn, with its shareholding in the gambling group recently increasing to over 98%.

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Earlier this month, the French gambling group completed its acquisition of Unibet and 32Red operator for nearly €2.5bn, a transaction that had been in the works since an offer of SEK 130 in cash per Swedish Depository Receipt (SDRs) was submitted back in January this year.

Following the end of the first settlement delivery of the offer on 11 October, FDJ held 91.77% of Kindred’s share capital, tendering 195,659,291 Kindred SDRs, representing 90.66% of the group’s capital, alongside acquiring 2,400,000 Kindred SDRs directly from Veralda, representing 1.11% of the group’s share capital.

However, at the time, FDJ extended its offer to 18 October to allow for Kindred shareholders who have not tendered their shares to do so on unchanged terms. With that date now passed, the group has announced that an additional 14,734,917 Kindred SDRs were tendered, representing 6.83% of the share capital.

Following settlement delivery of the extended offer, expected to take place on 29 October, FDJ’s shareholding in Kindred will therefore be 98.6%.

Since FDJ holds over 90% of Kindred’s share capital, the group intends to “request the implementation of the squeeze-out procedure” following Kindred’s articles of association to acquire all the shares not tendered in the public offer, delisting Kindred’s SDRs from Nasdaq Stockholm.

Earlier this month, Stéphane Pallez, Chair and CEO of the FDJ Group, described the Kindred acquisition as creating a “European champion” that will produce sustainable and profitable growth.

FDJ noted that thanks to the transaction, it has “a diversified and balanced profile, based on monopoly activities, primarily lotteries, in France and Ireland, and on online sports betting and gaming activities open to competition in Europe”.

The group also expects the offer to generate “around 26% of its revenue internationally” thanks to Kindred’s European market presence in countries such as the Netherlands, the UK, France, Sweden and Belgium.

In addition, FDJ stated that its online gaming range open to competition will account for “around 27% of its business”, which includes sports and horse betting, poker and casino offerings.

Last week, Kindred added personnel from FDJ to its Board of Directors to replace recent resignations, with Executive Vice-President Finance, Performance and Strategy Pascal Chaffard, Finance Director Edeline Minaire and Chief Regulation Officer Célia Vérot being elected.

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James Elliott, Director of Legal at LeoVegas Group, shared his personal experience with the audience at the Payment Expert Summit in Lisbon, describing the steps he had to take to verify his identity in order to attend the recent event in Portugal.

Elliott wasn’t simply venting about the process – he was one of three speakers discussing the upcoming digital ID framework in the European Union (EU). This framework is designed to address exactly the kinds of issues Elliott experienced, introducing a digital wallet that aims to give all EU citizens access to a secure, unified digital ID by 2030.

This digital wallet will allow individuals to seamlessly verify their identity and obtain important documents, such as driver’s licences or medical prescriptions via a singular platform. The EU’s vision is to create a system where users have control over their ID and personal data, allowing different levels of access depending on the service or interaction.

However, the question posed to Elliott, Charlotta Shelbourg, Director of Product at Kindred and Peter Murray, Director of Strategy for Betting and Gaming at Mitek Systems, was questioned whether this framework presents a significant opportunity for operators in the gaming industry.

Since the framework is identity-based, it is expected to help operators streamline the onboarding process, which has long been time-consuming. Murray noted that this process hasn’t evolved significantly, even with the advancements in technology, but maintains that this framework could be a “fundamental game changer”. 

The panel stated that the benefits of this framework extend beyond operators, as most importantly, it will benefit consumers. This is crucial, as widespread adoption hinges on consumer acceptance, a topic the speakers addressed later in the discussion.

For consumers, the digital ID framework promises significant benefits by granting them enhanced control over their personal data. Individuals will have the power to determine what information is shared, with whom and when, ensuring that their privacy is safeguarded. 

This approach not only looks to bolster security by minimising the risks associated with sharing sensitive documents through traditional means, but it also accelerates transactions, making them quicker and more efficient. 

With a unified digital wallet, users can verify their identity across various services and jurisdictions in an instant, eliminating the lengthy processes of the past. Ultimately, this system aims to empower consumers to take charge of their information and take the power from third-party companies.

Trust, security and adoption

However, while this framework sounds promising on paper, there are still concerns and challenges that need to be addressed. One of the most significant worries, especially in light of recent discussions about fraud in the UK, is the risk associated with having all personal data stored in a single wallet.

Elliott said: “I think (digital IDs) are also potentially very vulnerable because if you’re putting all of that info in one place we’ve got to make sure the person providing that has got security because that will be the biggest target for hackers and identity crime.”

The speakers mentioned that, in addition to implementing top-notch security measures, it is crucial to reassure customers about the safety of their data. This reassurance stems from a foundational level of trust – something that is essential between the customer and operator.

Operators have observed that players are often reluctant to share their personal data when placing bets, particularly with the rise of Open Banking. Shelbourg highlighted that this hesitance is partly due to the perception that it feels “intrusive” to provide such extensive information for a small wager.

Shelbourg and Murray discussed that a solution to this problem alongside education will be branding, making sure that your company’s brand is trustworthy and reliable. 

Demographics were also a significant topic of discussion regarding the challenges to adoption. Similar to many emerging technologies, older generations tend to be more cautious about using them, and in some cases, their apprehension is justified. This observation aligns with statistics reported by various industries concerning Open Banking adoption rates.

These rates will vary based on demographics and the influence of other organisations adopting these systems. Shelbourg pointed out that if large state-owned banks and institutions embrace the digital ID framework, the rollout will happen “quite easily.” However, if only gambling companies are involved, it will likely take significantly longer to achieve widespread acceptance.

In addition to improving the onboarding process for operators, the panel discussed several other areas where the digital ID framework could have a positive impact, such as enhancing fraud prevention – particularly regarding bonus abuse – and addressing the contentious issue of cross-border jurisdiction.

Since this framework will be managed by the EU, it presents a unique opportunity for standardisation. This is particularly significant for the gambling industry, which typically faces a landscape of varying rules and regulations across different markets.

However, this technology may open the door to standardisation discussions, which Elliott believes won’t have much influence on the gambling sphere. 

He said: “You rarely get a Spanish player in a Spanish location wanting to go and play on an Italian gaming site”, adding that this also isn’t allowed by many operators.

One significant shift this framework could bring to the gambling industry is the impact on identity companies and third-party providers, such as Murray’s Mitek Systems. These companies may need to consider offering similar solutions, but they’ll be competing against a free option provided by the EU.

“If you’re a current identity provider, you’ve really got to have your eye on this. It might be five years, it might be 10 years, but if you’re doing nothing your business model is fundamentally under threat,” Murray concluded.

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FDJ’s acquisition of Kindred has been in the works since an offer was submitted for the Unibet and 32Red operator – SEK 130 in cash per Swedish Depository Receipt (SDRs) – back in January, an offer that was unanimously recommended by Kindred’s board of directors.

Since then, FDJ has been seeking Kindred shares to meet the condition precedent of controlling more than 90% of Kindred’s share capital, in addition to gaining the approval of the acquisition from France’s national competition regulator – the Autorité de la concurrence – last month, as well as from the Swedish Financial Supervisory Authority in February.

At the end of the offer period on 2 October, FDJ had tendered 195,659,291 Kindred SDRs, representing 90.66% of the group’s capital, in addition to acquiring 2,400,000 Kindred SDRs directly from Veralda, representing 1.11% of the group’s share capital.

Meeting the 90% share capital condition precedent, FDJ has completed the acquisition of Kindred, with the settlement delivery for Kindred shareholders who have tendered their SDRs to the offer to take place from 11 October. FDJ will implement a squeeze-out procedure on Nasdaq Stockholm.

FDJ also announced that it is extending its offer until 18 October 2024 at 5pm CEST to enable Kindred shareholders who have not tendered their shares to do so on unchanged terms, with settlement and delivery taking place from 29 October.

Commenting on the transaction, Stéphane Pallez, Chair and CEO of the FDJ Group, described the Kindred acquisition as creating a “European champion” that will produce sustainable and profitable growth.

The group stated that through the acquisition, it now has “a diversified and balanced profile, based on monopoly activities, primarily lotteries, in France and Ireland, and on online sports betting and gaming activities open to competition in Europe”.

In addition, FDJ expects the offer to generate “around 26% of its revenue internationally” thanks to Kindred’s presence in European markets such as the Netherlands, the UK, France, Sweden and Belgium.

Meanwhile, its online gaming range open to competition will account for “around 27% of its business”, which includes sports and horse betting, poker and casino offerings.

“I am delighted to announce today the acquisition of Kindred, a leading European player in the competitive online betting and gaming sector,” commented Pallez.

“Kindred has strong brands, recognised technological excellence and an attractive growth and profitability profile, all of which will bolster FDJ’s strengths. The two groups also share high standards for responsible gaming and a business model that combines performance and responsibility. 

“This acquisition creates a new European champion that intends to pursue its strategy of sustainable and profitable growth for the benefit of all its stakeholders.”

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