The company behind Unibet, known as Kindred, will be exiting the German market on July 1st. This choice was made due to the slow pace of license approvals and the strict regulatory environment.

Kindred has declared that they have made the difficult choice to withdraw their application for licenses for sports betting and virtual slots. They will stop all operations in Germany on July 1st.

Kindred explained that their long-term plan focuses on markets that are regulated locally as a key driver for growth. However, the licensing application process, licensing terms, and regulatory environment must be clear, sustainable, and financially sound for competition in the market.

The company stated that the current application process and the terms and restrictions on product offerings make the regulated market unstable and insufficient to compete with operators from outside the country.

“Therefore, we currently do not see a foundation for long-term shareholder value and customer satisfaction.”

The departure will have a minimal financial impact on the business due to its limited current operations in Germany.

The fourth German Interstate Treaty on Gambling includes many strict rules for operators. These rules include a €1 limit on online slots and a €1000 loss limit that applies to all operators, with only a few exceptions.

Digital wagering companies and organizations, including those involved in virtual slot machines and athletic betting, have strongly opposed a three percent turnover levy, considering it impractical.

Kindred, initially intending to enter the market, filed a sports wagering permit application in February of 2020. After the New State Treaty came into effect on July 1, 2021, they also submitted an application for a virtual slots license. A representative for Kindred informed iGB that the decision to withdraw was due to authorities indicating they had not yet made a decision on the application, even after the operator expressed their desire to remain in the market.

“We anticipated the permit application to be authorized,” the representative told iGB. “However, we were informed that no determination has been made, signifying our application will be indefinitely shelved. This scenario is not sustainable.”

However, the operator did not eliminate the possibility of a future return and declared their stance could change.

New participants are unable to enroll on Unibet’s German website, and deposits are also blocked. Nevertheless, the website will remain accessible until June 30th, enabling players to place wagers and withdraw funds using existing balances before this date.

Kindred added that they will concentrate on other strategic initiatives due to the withdrawal.

The Kindred Group is intensely focused on expanding its operations in North America. They aim to have more authority over their offerings, so they’re utilizing their Kindred Sportsbook platform and acquiring Relax Gaming. This will aid them in realizing their single-platform vision and reaching their “Towards Zero” objective.

They are also returning to the Dutch gambling market shortly. They departed in October 2021 due to some new regulations that made it challenging for unlicensed companies to operate there. However, they obtained a license this month, enabling them to resume business.

Kindred’s stock price has not experienced significant fluctuations due to this news. It has declined slightly, but not considerably.

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