Kindred Touts Decreased Revenue from Problem Gambling

The parent company of Unibet announces reduction in revenue from problem gambling, but recognizes more work needs to be done.
Kindred Touts Decreased Revenue from Problem Gambling
By November 04, 2021

The parent company of Unibet, the Kindred Group, is showing a smaller percentage of their income from problem gamblers in Q3 of 2021 than any time in the past year. Since Q4 2020, the percentage of income from problem sources for the gambling operator dropped a full percentage point.

Nearly every gambling company on the planet is working on ways to reduce their exposure to problem gamblers. While these problem gamblers can provide significant revenue for an operator, the social harms attached to such problem gambling are also clear, and the industry has banded together to work towards getting problem gamblers off their systems.

To demonstrate the success of its efforts, Kindred recently released its results for the past year and showed that total revenue from problem gambling was down from 4.3% in Q4 of 2020 to 3.3% in Q3 of 2021. That ends a somewhat up-and-down 12 months that saw the number oscillate from 4.3% down to the current 3.3%.

2020/2021 Revenue from Problem Gambling for Kindred Group

Global statistics from Kindred Group Q4 2020 Q1 2021 Q2 2021 Q3 2021
Share of gross winnings revenue from high-risk players 4.3% 3.9% 4.3% 3.3%
Improvement effect after interventions 75.7% 76.6% 76.9% 64.9%

While the numbers dropped going into the beginning of Q1 2021, they went back up again for Q2 before plunging back down to the 3.3% low of Q3. That Q3 figure marked the lowest percentage of revenue from problem sources for the entire year of data and shows a commitment to getting problem money out of the game.

An Academic Approach

One of the key issues with reducing problem gaming is identifying it in the first place. It is relatively easy to look at individual cases of gamblers gone broke, or people stealing money to fuel their habit, and see a clear problem, but identifying those problems in advance is not as easy as it sounds.

The key to identifying potential problems before they escalate is a solid understanding of the patterns and behaviors of problem gamers. To that end, Kindred’s Head of Responsible Gambling and Research, Maris Catania, recently co-authored a peer-reviewed paper examining the application of DSM-5 criteria for gambling disorder to actual online gambling behavior.

The paper, titled Applying the DSM‑5 Criteria for Gambling Disorder to Online Gambling Account‑Based Tracking Data: An Empirical Study Utilizing Cluster Analysis and published Oct 11 in conjunction with Catania’s Ph.D. tutor Professor Mark Griffiths, looks to put theory into practice by providing actual examples of behavior engaged in by problem gamblers. Says Griffiths, “To limit harmful gambling, the behavior has to be identified in the first place.

“Our research provides Kindred with actual examples of the types of behavior engaged in by problem gamblers, which could be used by the player protection team to identify potential markers of harm,” Griffiths added.

Identification is the first step to intervention, so the research from Griffiths and Catania is the beginning of the process of rooting out the problem behavior.

The method seems to have success for Kindred. Since the beginning of 2020, the percentage of revenue from problem sources has been consistently below 5%, with a high of 4.72% in Q2 2020, exactly when the height of the global pandemic was in swing and many new players were coming to the online gambling world.

Kindred Grp Problem Gambling Revenue

Share of revenue from customer risk level Social Low Risk Medium Risk High Risk
2021 Q3 67.98% 23.53% 5.23% 3.25%
2021 Q2 71.40% 19.50% 4.80% 4.30%
2021 Q1 77.63% 13.85% 4.60% 3.92%
2020 Q4 72.37% 16.55% 6.77% 4.31%
2020 Q3 66.53% 20.48% 8.60% 4.39%
2020 Q2 66.02% 21.10% 8.17% 4.72%
2020 Q1 60.69% 25.58% 9.85% 3.88%

Removing problem gambling revenue from their totals is a key requirement for online gambling operators these days, and Kindred seems to be finding success. For details on the study behind Kindred’s identification of problem gamblers, check out the full study published at Kindred’s website.

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