The Canadian province of Alberta will be delaying the launch of its regulated igaming market, according to the Press Secretary of the Minister of Service Alberta and Red Tape Reduction Dale Nally.
Back in June at SBC’s Canadian Gaming Summit, Nally spoke about Alberta’s plans for its igaming market, specifically its desire to have an open-market model similar to that of Ontario.
Since then, speculation has grown over the potential launch date. However, speaking to Canadian Gaming Business, Nally’s Press Secretary Brandon Aboultaif confirmed that plans will still be laid out in 2025, but the office needs more time for discussions with stakeholders.
Aboultaif said: “As the gaming industry continues to evolve globally and in Alberta, we want to ensure a conducive business environment while protecting the health and safety of Albertans, particularly our youth. We want to get our igaming strategy right by ensuring fairness and transparency to everyone.
“Industry stakeholders have told us that we need to continue our conversations so they can provide more input on the model. We are doing just that. Further engagements will also help to identify opportunities to align the strategy with our red tape reduction priorities.
“While we aim to put the strategy forward in 2025, we will continue to provide updates as this work unfolds.”
Potential dates speculated for the Alberta igaming market launch included early next year and later in 2025 in time for the Canadian Football League’s Grey Cup in November.
However, Paul Burns, CEO and President of the Canadian Gaming Association (CGA), told Canadian Gaming Business that such a timeline was unrealistic given what was needed for the regulated market to go live.
Burns said: “I think there was a growing concern about just how they were going to get everything done in the time required. I think the government is evaluating its timelines and making sure they can meet all of the objectives they’re setting out for themselves, and they’re giving themselves a few more months to be able to do the work.”
While some consultations have been completed, such as with Alberta’s First Nations, many more stakeholder consultations still need to be finalised, in addition to cabinet-level decisions and approvals.
CGA recommended to Alberta decision-makers that it replicates parts of Ontario’s igaming model, but it also needs to include land-based operators in its discussions.
Decisions must be made on how the province’s igaming market will be managed. Nally said back in June that the provincial Justice Minister would be responsible for Alberta’s igaming market, not Alberta Gaming, Liquor and Cannabis.
Burns also told Canadian Gaming Business that Alberta also needs to examine the Ontario Superior Court lawsuit involving the Mohawk Council of Kahnawà:ke (MCK) as it featured “some of the best language and direction and case law on conduct and manage we’ve ever seen in terms of its plain language and its approach”.
The CGA CEO believes that Alberta can find a way to manage compliance correctly if it reviews the lawsuit, which ultimately ruled against the MCK challenge that the iGaming Ontario’s framework was “illegal and unconstitutional”.
Burns concluded: “The timeline has paused but I don’t believe there’s any less commitment to getting this done. I just think there’s a very good commitment to getting it right. There’s a lot of work to do. They recognise that, they understand that and they’re taking more time to get it right. That’s the encouraging part.”
Kindred Group has applied for the delisting of its Swedish Depository Receipts (SDRs) from the Nasdaq Stockholm after Groupe Française des Jeux (FDJ) completed its acquisition of the company and requested a squeeze-out procedure.
It comes as the Unibet and 32Red operator also published its financial results for the third quarter of 2024, reporting increases in total revenue, gross winnings revenue (B2C) and active customers when compared to the same period last year.
Within the report, CEO Nils Andén noted that with the completion of Kindred’s acquisition by FDJ, the group will exit ‘.com’ markets “that don’t have a clear path to local regulation in the near future”, which will impact the company’s ability to hit its stated underlying EBITDA target of £250m.
In addition, Andén thanked investors for their support and praised the global Kindred team for their hard work as the group enters its next phase with FDJ.
Earlier this week, FDJ announced that its shareholding in Kindred had increased to 98.6% after an additional 14,734,917 Kindred SDRs were tendered, representing 6.83% of the share capital being added on top of the 91.77% it already had following the end of the first settlement delivery of the public tender offer on 11 October.
Since FDJ holds over 90% of Kindred’s share capital, the group has requested the implementation of a squeeze-out procedure, exercising its right to require all those shareholders of Kindred who have not tendered their shares pursuant to the offer, to transfer all their shares to FDJ.
Kindred said in a statement: “Each squeezed-out shareholder is hereby further notified that, in view of the exercise of the squeeze-out right by FDJ, each squeezed-out shareholder must transfer all its shares in the company to FDJ in accordance with the provisions of the articles of the company and the shareholder squeeze-out notice.”
In light of this, Kindred’s board of directors has applied for delisting of the company’s SDRs from Nasdaq Stockholm, with its last day of trading to be announced as soon as the date has been confirmed by Nasdaq Stockholm to the company.
As previously mentioned, Kindred has also published its Q3 2024 financial results, noting that total revenue for the period has increased by 4% year-over-year to £294.5m (Q3 2023: £283.9m).
Andén attributed this growth to a strong performance being maintained across the company’s key markets. B2C revenue also rose by 3% YoY to £283.1m (2023: £274.7m).
The company’s number of active customers increased in Q3 as well by 9% YoY to 1,701,100 (2023: 1,563,762).
“The positive momentum gained throughout the first half of the year continued as we stepped into the final half of 2024, with key markets maintaining strong performance,” the CEO said.
“Total revenue for the third quarter was £294.5m, representing a 4% increase compared to the same period last year (5% in constant currency). Excluding North America, total revenue increased by 6% for the same period.”
Kindred’s underlying EBITDA increased by 49% YoY to £63.4m (2023: £42.6m).
However, Andén also highlighted that Kindred’s exit from ‘.com’ markets that don’t have a clear path to local regulation will impact the company’s ability to reach its stated underlying EBITDA target of £250m.
Andén commented: “I am very pleased that our underlying EBITDA came in at £63.4m, reflecting an increase of 49% year-over-year. This represents an underlying EBITDA margin of 22% and demonstrates our scalable business model.
“The stellar performance and dedication from everyone at Kindred has resulted in a year-to-date underlying EBITDA of £196.3m. I am very pleased that we would be well on track to achieve our stated underlying EBITDA target for the full year 2024 of £250m.
“However, following the expected completion of Kindred’s acquisition by La Française des Jeux (FDJ), Kindred will exit .com markets (including Norway) that don’t have a clear path to local regulation in the near future. This action will negatively impact our ability to reach our stated underlying EBITDA target.”
Kindred’s profit before tax fell to £12.5m (2023: £15.1m) due to “significant strategic review costs of £30.9m (2023: £0.6m) in relation to the FDJ transaction”. Profit after tax was £9.6m (2023: £12.6m), which included a loss from discontinued operations of £0.4m (2023: £13.1m) and profit from continuing operations of £10m (2023: £25.7m).
Earnings per share were £0.04 (2023: £0.06), while free cash flow amounted to £-4.2m (2023: £24.5m).
Andén ended Kindred’s Q3 report by looking ahead to the company’s future, noting that its focus on locally licensed markets is helping to produce “long-term, sustainable revenue”.
“Our strategic focus on growth in locally licensed markets continues to generate long-term, sustainable revenue,” he said.
“Year-on-year Gross winnings revenue from locally licensed markets has grown 4% versus the same period last year (7% excluding North America). France has sustained strong momentum, further driven by both the Euros and the home Olympics. In addition to France, we have seen very positive results in the Netherlands, Romania and Denmark during the period.”
“I’m thrilled that our in-house sportsbook development continues to progress according to schedule. Following successful launches in several smaller markets, we are now on track for our first locally licensed market launch later this quarter.”
As the company enters its next phase with FDJ, the CEO also took the opportunity to thank investors and praise Kindred’s staff for their “unwavering resilience and dedication”.
Andén concluded: “With the public offer by FDJ now completed, and as we transition into the next exciting phase in Kindred’s history, I would like to take this opportunity to thank investors in Kindred, both past and present.
“Twenty years as a public listed company on Nasdaq Stockholm comes to an end. Together, we have made a significant contribution to the creation of a competitive, digital and sustainable online gambling industry.
“Finally, I would like to take this opportunity to thank the global Kindred team for their unwavering resilience and dedication. Where one chapter ends, a new one begins.”
