Kindred Group Announces Unibet Is Leaving Iowa

Written By Giovanni Shorter on October 31, 2022
unibet iowa

Kindred Group will be ending Unibet Sportsbook in Iowa due to poor performance. The company announced this decision during its third quarter financial report.

In September, Unibet was the No. 17 operator in Iowa out of 18 total books. Kindred will likely focus on the North American markets that Unibet is successful in at this point. Unibet remains in Arizona, Indiana, New Jersey, Ontario, Pennsylvania, and Virginia.

Unibet Closes In Iowa

The Iowa market had not embraced Unibet the way Kindred Group had hoped. The company revealed in the earnings report that Iowa was the smallest US market that Kindred occupied. Despite being in Iowa since September 2021, the market has not grown in that time.

The report shows that Unibet raked in $516,136 in sports betting revenue during the first month of activity in Iowa. This amounted to $34,660 in sports betting revenue off of a $6.7% hold. Fast forward to September 2022, Unibet saw $165,961 in betting handle and $16,331 in revenue off of a 9.8% hold rate. This is a decrease in activity year over year.

“As part of its efforts to optimize its U.S. state footprint in line with its North America strategy, Kindred has decided to exit Iowa in Q4 2022,” read the official release.

Looking at Unibet’s growth in other markets indicates that this is specifically an Iowa issue and not a US or North American problem for the company. During the first month of activity in Indiana, Unibet saw $561,870 in betting handle in August 2020. September 2022 saw close to $4 million in betting handle for Unibet in Indiana.

Overall North American Growth

Despite Unibet Iowa being a disappointment, the financial report did reveal growth in the North American market. The company reported gross winning revenue of $9 million in quarter three. This is a 15% increase year over year.

The company was still in the red, however, due to marketing expenses and administrative costs. In total, Kindred suffered an $11.3 million amortization loss during the quarter. The company expects to break even in North America by 2026.

With Unibet Iowa not being successful, ending its operation could be seen as a way to decrease expenses. Kindred has big plans for the North American Market going forward.

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Giovanni Shorter

Giovanni Shorter is a sports enthusiast and writer with a passion for the legal and industry side of the sports betting market. Giovanni got his education from Florida State University where he honed his writing style writing narratives and short stories. He has spent his professional career covering sports and entertainment through articles and blogs and continues to look at the industry from multiple angles.

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