Kindred Group to exit Germany following court case in Norway

The casino operator, Kindred Group, has had a challenging month thus far. It has been compelled to leave its activities in Germany and Norway in Europe, where it has now lost a legal case that has been going on for some time.

Despite Kindred’s efforts to combat Norway’s monopoly approach to wagering, its Trannel affiliate has allowed the company to keep its Unibet service operational in that nation. Because it lacked a legitimate grounding in the law to support its contention, it was highly unlikely to succeed from the very beginning.

Its law suit against the nation was recently rejected by a judge in the district court in Oslo. As a consequence of this, and given that it does not possess a gaming license in Norway, its prospects in that country is uncertain. Despite this, the company that is listed on the Stockholm Stock Exchange has declared that it would appeal the ruling.

KINDRED PLACEMENT IN NORWAY

The contention made by Kindred is that the exclusivity was not conducted in a just manner. Although that could be the case, doing so is not against the law. Despite this, it continued to operate its brands Mariacasin, Unibet, Storspiller, and Bingo despite the risk of incurring daily fines of US$134,000).

On April 5, the gaming authorities in Norway issued an order requiring Kindred to cease all activities. Because of this, it is possible that the operator may be required to pay a fee of US $9.96 million beginning on June 23 for the privilege of operating. However, because it is contesting the ruling of the court, it is possible that the total cost may increase.

Kindred stated in regards to the ruling that it will:
“continue to dispute and will appeal as we seek to deliver a free, open, competitive, and safe gambling environment in Norway.” It added that a “transparent and objective licensing regime is the only way to obtain a well-functioning gambling market that balances consumer entertainment and consumer protection. We will continue to work towards this goal.”

Over three years have passed since the conflict began. Finally, the Gambling Authority in Norway ordered Trannel to cease activities in April 2019 since it did not possess a permit. Kindred therefore petitioned to the Lottery Authority Board and the Ministry of Culture and it was defeated.

KINDRED LEAVES GERMANY

Kindred will probably close in Norway, as it has in Germany. Unibet will leave the region’s marketplace on July 1.

Unibet canceled its sportsbook and digital slot licensing requests, the business said to local regulators. It said Germany’s Fourth Interstate Gambling Treaty (GluNeuRStv) was complicated and cumbersome and did not promote a sustainable, established industry.

“Our long-term strategic direction sets out locally regulated markets as the core engine for our growth. However, license application procedures, license conditions, and the regulatory environment need to be transparent, sustainable, and financially viable for a market to be competitive,” Kindred stated in a press release.

Kindred came to the conclusion that there is no structure for a lengthy value of the company to both its shareholders and its customers. However, it did not rule out the possibility of changing its mind in the future.

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