Staying competitive in the U.S. and Canadian legal sports betting markets is expensive — and Unibet is no exception.
On Thursday, Unibet's parent company, Kindred Group Plc, announced their third-quarter revenue hit GBP 277.8 million, and year-to-date reached GBP 763.2 million, but things were a little complicated.
In Q3, gross revenue fell by 9% year-over-year, but that was directly caused by the group’s brief exit from the Netherlands. Excluding that setback, gross winnings would have increased by 8%.
Legal sports betting gross revenue for Kindred fell 6%... but rose 9% if you take out the Netherlands. Their hold percentage was 9.9% (including free bets), compared to their average of 9.4%.
Kindred struggling in competitive North America
The North American market also weighed down earnings, as Kindred’s EBITDA (earnings before interest, taxes, depreciation, and amortization) in the region was negative. The primary reason for this was due to marketing costs to launch in Ontario and promotions across the United States as football season ramped up.
Gross winnings revenue for the North American market decreased by 3% year-over-year, but did increase 8% versus the previous quarter. Unibet’s goal is to be a Top 10 betting site in the markets they operate in, and for that reason, sports betting in Iowa was on the chopping block.
Unibet will leave the state before the end of the year, as the Hawkeye State had 18 operators in September, and Unibet ranked just 17th. ClutchBet nearly overtook them despite launching near the end of the month.
Unibet’s handle in Iowa for September was $165,960, netting just $16,330 — In comparison, DraftKings took in over $66 million in bets.
Kindred still expanding
Despite the struggle on the continent, Kindred Group is still making moves. On Monday, Kindred signed a deal with the Swinomish Tribe in Anacortes, Washington, which paves the way for Unibet to launch in retail-only Washington — which would replace Iowa as its eighth North American market.
"We are very excited to expand our footprint in the US and to do so together with the Swinomish tribe," said Manuel Stan, SVP of North America Kindred Group. "The opening of a Sportsbook Lounge at the Swinomish Casino and Lodge will allow us to offer the best in class sports betting experience."
In Q3, Unibet had licenses in New Jersey, Pennsylvania, Indiana, Virginia, Arizona, Iowa, and Ontario. The company noted it will take time to be profitable, and based on projections, breaking even in the U.S. and Canada could take until 2026.
