Kindred Group Reports on High-Risk Revenue: A Mixed Bag for Q3

The Kindred Group, a prominent player in the online gambling sector, has recently shared its latest insights into the share of revenue generated from ‘high-risk’ players, revealing a figure of 3.2% for the third quarter (Q3) of 2023. While this marks a step forward compared to last year’s rates, it also highlights a rise from the previous quarter, underscoring the ongoing challenges in managing player behavior in an evolving industry landscape.

Consistent Transparency on High-Risk Revenue

Since February 2021, Kindred has taken significant strides in transparency regarding the revenue derived from harmful gambling behaviors. This latest update, which encompasses a 90-day period ending on September 18, indicates that 3.2% of the operator’s overall revenue is attributable to customers categorized as high-risk. This is a marginal improvement from Q3 of the previous year, where the figure stood at 3.3%, but it shows an increase from a 3% share in Q2 of this year.

This fluctuation raises important questions about player conduct and the effectiveness of harm prevention measures within the organization.

Positive Trends in Player Behavior

Amidst the challenges posed by high-risk revenue, Kindred has recorded promising developments in player behavior following interventions. A noteworthy 87.3% of players whose habits were addressed through the company’s responsible gambling initiatives showed improvement in their gambling behavior. This surpasses the previous year’s figure of 86.7% and slightly outpaces Q2’s 86.8% rate, indicating that Kindred’s interventions are yielding positive results.

Acknowledging Ongoing Challenges

Despite the positive trends in player behavior, the increase in high-risk revenue poses a significant challenge for Kindred. Esther Scheepers, the head of responsible gambling at Kindred, emphasized the importance of strengthening their behavioral harm detection and intervention systems.

“The rise in high-risk revenue presents a challenge in Q3, which reinforces the need for further advancements in our behavioural harm detection and automated intervention systems,” Scheepers stated. Her comments reflect an awareness of the complex issues surrounding gambling addiction and a commitment to addressing them with greater sophistication.

Scheepers explained that Kindred is actively upgrading its detection capabilities to enhance support for at-risk players. "The general awareness and knowledge around gambling disorder is increasing rapidly, as is the sophistication of technological support tools,” she noted.

Future Strategies for Safer Gambling

Kindred’s strategy moving forward appears multifaceted. As they develop their upgraded detection system, they aim to incorporate more rigorous compliance features and optimize their approach to promoting safer gambling practices. Furthermore, exploration of new research initiatives will be crucial, enabling Kindred to adapt to emerging trends and issues in consumer protection.

Scheepers is optimistic about the technological advancements on the horizon, which will play a pivotal role in enhancing player safety and well-being.

A New Chapter with La Française des Jeux (FDJ)

The latest statistics arrive on the heels of a transformational phase for Kindred, as the company recently became part of the La Française des Jeux (FDJ) group following a €2.45bn acquisition. This strategic shift signifies not only a new chapter for Kindred but also an opportunity to leverage FDJ’s robust resources and expertise in promoting responsible gambling habits.

In conjunction with this acquisition, Kindred reported a preliminary trading update for Q3, highlighting total group revenue of £294.5m (€354.6m/$382.4m), representing a 3.7% increase from the previous year—but about 10% lower than Q2’s impressive figures. Meanwhile, FDJ has demonstrated resilience in its financial outlook, reporting an 11.9% increase in year-to-date revenue, and projecting substantial growth for the upcoming year.

Conclusion

As Kindred navigates the complexities of high-risk player revenue and works to refine its responsible gambling practices, it remains committed to transparency and continuous improvement. By embracing innovative technologies and strategies, the group aims to foster a safer gaming environment, ultimately aspiring to reduce the share of revenue tied to harmful gambling. As this journey unfolds, the importance of collaboration and knowledge-sharing within the gambling community will be paramount, paving the way for a more responsible and sustainable gaming landscape.