Kindred Group is pulling out of Ontario, U.S.
The European operator is getting out of North America to cut costs. ESPN Bet and theScore Bet are now NHL partners, and Rivalry's CEO says the company is still on a path to profitability in 2024.
In this issue:
Kindred Group taking leave of North America
NHL brings on board theScore Bet, ESPN Bet
Rivalry continues on path to profitability: Salz
AGCO loses senior policy advisor to U.S. Integrity
Matthew Holt to join Gaming News Canada Show
Kindred Group, Unibet to bid adieu to Ontario
When Amanda Brewer departed Kindred Group as its Canadian country manager last month, the writing was on the wall that the European company’s Ontario venture was on thin ice.
It turns out that was just the tip of the iceberg.
Kindred announced yesterday morning its plans to get out of North America entirely by the end of the second quarter next year. The withdrawal is part of a major cost-cutting initiative that includes letting go 300 employees and consultants between now and the end of 2024, designed to save almost $70 million. We are told that Kindred’s Toronto office consists of two compliance managers. The company will focus on its core business in the UK, France and Scandinavia.
“The cost reduction actions announced today are both necessary and decisive,” Kindred interim CEO Nils Anden said in a news release. “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.”
This slide from Kindred Group’s Q3 financial results paints a clear picture of the company’s struggles on this side of the pond:
Matt Rybaltowski and Chris Altruda of Sports Handle did the double-byline thing on Kindred’s struggles in the U.S. market. And, in yesterday’s Earnings+More newsletter, Scott Longley wrote that rumblings of Kindred being sold have been around since the company announced in April that a strategic review would take place.
Here in Ontario, Kindred never gained any momentum despite its Unibet sports betting and igaming product being open for business on Day 1 in April 2022. From our place in the Bob Uecker seats, the Kindred story is a cautionary tale for an European company wanting to be successful when it comes to North America. That means knowing you’re dealing with different customers. It means investing in local talent that knows those customers. And it means delivering a mix of product and services that reflects an understanding of a market’s uniqueness.
For everyone affected by the announcement, we send our best wishes for what lies ahead for each of you.
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Penn gets together with NHL via ESPN Bet, theScore partnerships
From the Dept. of Making Perfect Sense came word yesterday morning that the NHL’s latest partner in the sports betting category is Penn Entertainment through ESPN Bet and theScore Bet.
Just in case you’re an Edmonton Oilers fan and you’ve been holed up in your basement trying to figure out what in the name of Marty McSorley has afflicted the Oil in the first couple of months of the regular season (although the tide may finally be turning), Penn and ESPN made its own partnership announcement back in August to create ESPN Bet. The Worldwide Leader is also in Year 3 of a seven-year broadcast deal with the NHL. So, several synergies here that make it a proverbial no-brainer for the Penn properties to become an official sports betting partner of the league. By the by, ESPN Bet went live earlier this month in 17 states south of the border, while theScore Bet is licensed to thrill in Ontari-ari-ari-o.
“There’s definite excitement in being one of the first leagues to partner with ESPN Bet and Penn Entertainment,” said Jason Jazayeri, NHL VP of business development. “From day one we’ve said our media rights deal with ESPN and The Walt Disney Company has been a big win for our fans and our league, and this new collaboration is further testament to the value of our partnership. The NHL is younger, faster, and more exciting than ever, and delivers tremendous opportunity for fan engagement and responsible gaming experiences. We’re looking forward to working with ESPN Bet in the U.S. and theScore Bet in Ontario to engage our passionate fan base.”
From Penn senior executive Aubrey Levy: “The recent launch of ESPN Bet in the US is extremely exciting and we’re thrilled to collaborate with the NHL to help market our new sports betting experience. Becoming an official partner allows us to more broadly engage hockey fans, develop compelling integrations and uniquely leverage NHL programming.
“This is also a key partnership for theScore Bet in Ontario, where the popularity of hockey is unmatched.”
Rivalry remains on track for profitability in 2024: Salz
There was something for both the glass-half-empty and glass-half-full classes yesterday with the release of Rivalry’s third-quarter 2023 financial results.
For the Debbie Downers, the Toronto-based company saw a net loss of $5.6 million for the quarter, the result of increased operating costs and foreign exchange loss. As detailed in the Rivalry news release, there was plenty to smile about for the sunnyside-up gang, including (from the communique):
Betting handle of $105.7 million,1 up 50% year-over-year, while reducing marketing spend 13%.
Revenue of $8.7 million, a 22% increase year-over-year.
Gross profit of $4.0 million, up 90% year-over-year.
Casino has grown to approximately half of the Company’s betting handle in Q3, demonstrating ability to cross-sell next generation bettors and drive growth against unseasonably low viewership in select Q3 esports events.
“We are proud to have delivered a record third quarter while exercising discipline on costs amidst a challenging capital markets environment for growth companies,” said Salz, adding that a cash infusion of $14 million earlier this month will help put Rivalry on the path to profitability in the first half of next year.
The company’s co-founder and CEO added: “Years of consistent performance, flattened opex multiple quarters in a row, demonstrated triple-digit growth year-over-year across core metrics year-to-date with all-time high average handle per customer, average revenue per user, and record low cost of customer acquisition over that same period gives me high conviction in Rivalry’s future.
“It is this proven operating leverage, supported by an improving sportsbook margin profile resulting in more revenue per dollar wagered, now fuelled by growth capital, that is creating a significant opportunity set for Rivalry. It is that combination which gives us confidence to reaffirm our first half 2024 profitability guidance.”
During a call with analysts yesterday, Salz mentioned on a couple of occasions Rivalry’s growing success in its own backyard.
“Ontario has been an increasingly bright spot for us. We want to go deeper in that market, and we’re finding a lot of resonance in the (millennials and Gen-Z) demographic we’re targeting.”
The release of the Rivalry results (alliteratively speaking) coincided with an Earnings+More piece at the beginning of the week on a somewhat-dim future for esports betting. Salz took to Linkedin and provided his own calm, measured response and we recommend reading the full post. We did grab this passage for our loyal readers:
“. . . . understanding where esports comes from, which is gaming culture, and understanding that gaming, of which esports is a subset, is by far the largest content category on the internet for <30's, and therefore a fixture of modern internet culture, will unlock the true opportunity... the demographic. The TAM (total addressable market) of that demographic in online gambling is massive, and will eventually overtake the current 35+ demo as time goes on. That demographic TAM is infinitely > solely esports betting TAM.”
From Rivalry’s Q3 presentation:
Coming Soon: iGaming Ontario to request proposals for a centralized self-exclusion solution in early 2024
iGaming Ontario’s (iGO) vision is to lead the world’s best gaming market, which includes building a safer and more enjoyable experience for all igaming players in Ontario. To support players who decide to stop or take a break from gambling, iGO intends to issue a request for proposals (RFP) in early 2024 for a centralized self-exclusion solution that will enable a player to self-exclude from all Ontario regulated igaming operators in a single registration process.
Given the coordinated nature of the program across all regulated igaming operators, including Ontario Lottery and Gaming Corporation’s (OLG) igaming site, the successful bidder will be expected to develop and implement a centralized self-exclusion system that integrates with all operator systems and supports players’ self-exclusion registration, renewal, and reinstatement.
The following are iGO’s principles for centralized self-exclusion:
PLAYER FOCUSED – to provide options to players to support their commitment to take a break, to ensure processes are easy to use with minimal barriers and challenges, and to offer a seamless connection to relevant support services.
SUPPORTIVE – to deliver and execute the program in a non-stigmatized, non-judgmental manner; to be supportive and encouraging so that players feel good about registering in self-exclusion.
TRANSPARENT – to ensure expectations and consequences for players and Operators are clear and information is comprehensive and well-promoted.
SECURE – to ensure player information is securely protected and shared only with relevant employees for the purposes of administering the program.
ROBUST – to implement strong processes and procedures bolstered by secure, responsive, and highly available technology to enable an effective program that supports a player’s goals.
VIABLE – to develop systems and procedures that are manageable and practical for Operators to implement.
With these principles in mind, iGO is seeking interest from responsive and nimble companies that are able to build modern, innovative, secure cloud-based SaaS solutions that are high-profile, public-facing and critically important to building and maintaining the trust and confidence of a wide range of stakeholders. The successful bidder will partner with iGO on a multi-year program to develop best-in-class user experiences by leveraging modern, innovative technology.
Some features for an effective centralized self-exclusion solution include:
Allowing players to create and manage their self-exclusion profile and including Know Your Client (KYC) identity verification
Providing players with easy access to self-exclusion at any time including while they are gambling on any regulated igaming website
Having registration, renewal, and reinstatement processes that are intuitive, simple and offer supporting information
Register on MERX to Review the RFP and Participate in the Bidding Process
iGO will make the RFP available on MERX in early 2024. You can find current and past iGO bid opportunities at merx.com/igamingontario. Find out how to register on MERX and other important information about the bidding process using the resources MERX provides on their site.
You can also contact MERX by e-mail at merx@merx.com or phone at 1-800-964-6379.
Jedrzejewski departs AGCO to join U.S. Integrity
When we first spoke with Matthew Holt back in the summer of 2021, the founder and CEO of U.S. Integrity had the NBA, several U.S. colleges and NCAA conferences along with sportsbook and casino operators as clients.
These days, Holt is one busy hombre as his company now provides integrity monitoring services to a still-growing customer list that includes the NHL, NFL, MLB, PGA Tour and UFC. Holt also got together this summer with Odds On Compliance chief Eric Frank to launch Prohibet, which lends a hand in preventing athletes and support staff in the sports world from wagering.
Your somewhat-diligent correspondent has been trying for awhile now to speak with Holt about taking his expertise and products, and focusing them on the Canadian market. Well, the genie was let out of the bottle late last week when Sebastian Jedrzejewski let it be known on LinkedIn that he was leaving his Senior Policy Advisor role with the Alcohol and Gaming Commission of Ontario after almost 20 months to become Director of Regulatory Affairs at U.S. Integrity.
Both Holt and Jedrzejewski will join us on LinkedIn Audio this afternoon for the Gaming News Canada Show presented by Osler, Hoskin & Harcourt LLP. In the meantime, we did the Q and A thing with Jedrzejewski this week about his new gig.
Gaming News Canada: How’d you end up in Canada in the first place?
Jedrzejewski: I was working in London (England) in financial compliance before the (regulated Ontario gambling) market opened. When I saw that the AGCO had jobs opened, I jumped at it. I’ve worked with a great group of people, including Dave Phillips, Brent McCurdy and Doug Hood. I count them as mentors. They provided a great support network and they tremendous passion for the industry, including the health of it. The AGCO is a place I didn’t want to leave.
GNC: What attracted you to join U.S. Integrity?
Jedrzejewski: It’s a great place to be right now. (At AGCO) I worked with all of the integrity monitors. When I thought about moving there was no doubt in my mind what monitoring business I’d want to go to. They’ve brought in Jason Van’t Hof from the NFL as Vice President of Investigations, the merger with Odds on Compliance around Prohibet, and doing partnership deals every three seconds. Matt (Holt) wanted to have someone who can really speak to the Ontario market as it grows.
GNC: What will you focus on in your new role?
Jedrzejewski: I’ll be managing relationships with regulators. Entering the Canadian market and the potential opening of B.C., Alberta and Quebec, and other provinces and territories, that’s something I have my eye on. U.S. Integrity is aware of the size and strength of this (Ontario) market, the potential growth in other provinces.
We’re also very keen to bring the Prohibet product to Canada. The work that the Canadian Centre for Ethics in Sport has done around match fixing, that’s something we can really support through Prohibet.
Holt to join Gaming News Canada Show
As mentioned in the previous section, U.S. Integrity’s founder and CEO will drop by LinkedIn Audio for the first segment of this afternoon’s Gaming News Canada Show presented by Osler, Hoskin & Harcourt LLP.
Regular contributors Amanda Brewer, Kris Abbott and Phill Gray are also scheduled to be with us for a discussion on another very busy week in the sports betting and gaming industry.
As always, the first bon mots drop shortly after 1 p.m. ET.
Classified (Jobs) Information
OLG is beefing up its executive suite by hiring a Senior Vice President, Corporate Affairs.
UK public broadcaster ITV is on a seek-and-employ mission for a Vice President Gaming & Gambling.
Bet99 has a remote opening in the true north, strong and free for a Casino Coordinator.
Atlantic Lottery is in hiring mode for a Director of Supply Chain.
The Careers page on the DraftKings website has opportunities a plenty these days.
GBG Plc is also on a hiring blitz right now, including an opening for a Director of Product Marketing at its Atlanta location.
Gibraltar-based BV Group is in hiring mode for a Head of Operations.
Friends of GNC SBC are in the market for an Event Executive, Europe.
U.S. Integrity is searching for a Senior Software Engineer to join its team in New York.
Bally’s Interactive has an opening for a Software Engineer - Digital Broadcast in Chicago.
Bet365 is on the lookout for a Programmatic Executive to work out of its Stoke location in the UK.
Fanatics has an opening for a Security Engineer - DecSecOps.
U.S.-based Super League Gaming is hiring a Brand Strategist/Account Manager.
Betfred is on a bit of a hiring spree at the moment, including in the sales area.
Pavilion Payments is seeking a Field Service Technician for its Iowa location.
Pinnacle has an opening in Malta for a Business Intelligence Analyst - Marketing Specialist.
Sharp Gaming has room for a Test Engineer in Manchester, England.
Hard Rock Digital is hiring an NOC Engineer for its offices in Austin, Tex., and also has an opening for an FP&A Manager.
Penn Interactive is searching for a Licensing Analyst.
Wanted by 1x2 Network for its offices in Sheffield, England; an Account Manager.
Betting services supplier SIS is hiring a Deputy Operations Manager.
Sparket is seeking a Senior Software Engineer Manager.
The Athletic is in hiring mode for a Staff Editor - Sports Betting.
Covers has a hybrid opportunity for a Freelance Brand & Creative Designer.
ESPN has an opportunity at its Los Angeles office for a General Editor Audience Engagement.
Sports media company Front Office Sports has a plethora of job openings across the U.S.
The Nation Network is looking for a Social Media Coordinator.
The U.S. Center for SafeSport in Denver is seeking an Associate Legal Counsel.
The National Hockey League is hiring for its Toronto office an Account Executive, Partnership Marketing.
The Canadian Football League has a position open for a Manager, Global Partnerships.
The Florida Panthers have an opening for a Hockey Data Scientist.
The Canadian Paralympic Committee is in the market for a Senior Coordinator, Social and Digital Content.
ATP Media is searching for a Production Manager - Original Programming and Non-Live Content.
Elevate Sports Ventures has an opportunity in Grand Ole Opry territory for a Director, Partnership Solutions.
We’re straying a little bit off the proverbial beaten path with this one. WestJet has a spot available for a Program Manager, Strategic Partnerships.
Goodbye November, hello to the final month of 2023
Finally, to put a period on November and give our readers a sentimental start to the final month of 2023, your soft-hearted scribe passes along this video that’s bound to bring a smile and a tear or two (thanks to Graham Robertson for posting on the LinkedIn):
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