Unibet is following through on its plan to withdraw from North America and has set a date to depart Canada’s biggest regulated market for online sports betting.
The European online gambling operator sent a message to Ontario customers last week informing them that the sportsbook and casino site will exit the province’s iGaming market on March 26.
“As we approach this date, you can continue to play as normal,” Unibet said. “We are working closely with our regulators [iGaming Ontario] and [the Alcohol and Gaming Commission of Ontario] to secure a smooth and seamless transition for you.”
Unibet added that it will send more details in the coming weeks about settling pending bets, “Jackpot Game” decommissioning, bonus usage, and withdrawing remaining funds, something that is “very important” for customers to do by March 26, it said.
“This decision was not made lightly, as we have worked hard to bring the best gaming experience to our valued players in Ontario,” Unibet said. “Please be assured that our Customer Support team will remain available to assist you during this time of transition.”
Unibet is telling customers it is shutting down in Ontario on March 26.
— Geoff Zochodne (@GeoffZochodne) January 26, 2024
The online sportsbook's owner, Stockholm-based Kindred Group, announced in November that it would exit North America by the end of Q2 2024, pending regulatory approvals.
See here:https://t.co/zgxXb555wU pic.twitter.com/1rWVs5oCYy
Unibet's owner announced in November that, as part of a strategic review to maximize value for shareholders, it planned to exit the North American market by the end of the second quarter of 2024, pending regulatory approvals. Stockholm-based Kindred Group PLC said doing so would allow it to reallocate financial and technological resources and gain market share in other key jurisdictions.
Since then, French gambling giant La Française des Jeux (FDJ) has made an offer worth more than US$2.5 billion to buy Kindred outright. Kindred’s board of directors unanimously recommended shareholders accept the offer, the official acceptance period for which is expected to start on or around Feb. 20 and end on or around Nov. 19.
In the meantime, Kindred and Unibet appear set on continuing their exit from North America. While the Ontario date is set, it’s unclear if Unibet’s March 26 announcement will extend to Arizona, Indiana, New Jersey, Pennsylvania, or Virginia. Kindred did not respond to questions from Covers before this story was published.
It wasn't looking good
At any rate, the looming departure comes as the Unibet brand has struggled to gain traction amid fierce competition for online sports betting customers. In Pennsylvania, for instance, Unibet garnered just 0.4% of mobile wagering revenue in December, according to Vixio GamblingCompliance Data. FanDuel, meanwhile, boasted a 50.1% share of the market.
Recent returns for Kindred were lacking as well. The company reported that its gross winnings revenue from the North American market was around $8 million for the third quarter, down 11% compared to a year earlier.
"The long-term outlook for Kindred in North America has changed since entry," Kindred noted in its quarterly report. "The competitive nature of the market means significant resource is needed to close the gap to market leaders and at our current capacity this is untenable. Despite optimisation efforts in recent quarters, continued losses from our North American operations place pressure on Group profitability and targets."
