According to Kindred Group representatives, the German regulated gambling industry offers licensed companies unreliable and uncompetitive operating conditions compared to unlicensed offerings. In other words, the regulated gambling operators lose out to companies that belong to the “gray” zone and operate in Germany with offshore licenses.
Kindred argues that the main reason for the disparity between licensed and illegal operators is that Germany’s Fourth Interstate Treaty on Gambling (GlüNeuRStv) regime subjects legitimate companies to heavy taxation and severe prohibitions. The Group also noted that the decision to withdraw from the market will not have a serious impact on the operator from a financial perspective.
After leaving the German market, Kindred plans to focus on the North American gambling segment and expand its presence there through the acquisition of Relax Gaming, which was completed in autumn 2021.
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