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Kindred Group update on the initial impact of COVID-19

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In light of the exceptional circumstances caused by COVID-19, Kindred is providing the following updates.

Trading update

Kindred has had a good start to the year with gross winning revenue for the first quarter of 2020 estimated to be in the range of GBP 247-252 million (Q1-2019: GBP 224.4 million) unaudited. The gross winning revenue was positively impacted by strong sports betting margins in the period up the disruption of sports in the middle of March 2020. Despite this, the margin before free bets was 12.2 per cent for the quarter, compared to 9.7 per cent in the first quarter of 2019.

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The full impact of cancelled sports events was largely effective from 16 March 2020, which resulted in lower sports book turnover, however partially compensated by solid growth in revenues from other products. As a very short-term indication, during the period 16 March to 31 March 2020, the daily average gross winnings revenue was GBP 2.2 million, which was 10 per cent lower than the average for the full year in 2019 (11 per cent in constant currency).

Update on dividend for 2019

Kindred has a good financial position with strong liquidity and low leverage. However, due to the uncertainty caused by COVID-19 and to ensure that Kindred is well capitalized for future investment opportunities, the Board has decided to change the previously communicated proposal on the 2019 dividend and will recommend to the AGM that no dividend is paid.

Operational update

Kindred has taken steps to protect employees and to ensure continuity of operations by adjusting ways of working so that, wherever possible, employees work from home. As a modern technology-based company, this has been achieved with minimum disruption to the business. Kindred is also working closely with all its partners to continue to provide an attractive sports and racing offer where possible and to be ready for normalized levels of sport activity.

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Henrik Tjärnström, CEO, comments:

“We expect the impact of the coronavirus on our business to be temporary, with sports activities gradually resuming during or after the summer. In order to reduce the earnings impact of temporarily lower sports revenues, we will adapt our cost base through reduced levels of marketing spend, lower operating costs and delaying certain investments.

While the current situation presents several challenges, I remain very positive about Kindred’s future outlook. Kindred will continue to benefit from a wide geographical reach and a broad product mix as well as a business model which has been resilient during previous times of economic downturns. I also believe that the social and behavioural changes that are already happening will accelerate the migration from offline to online, which will benefit digital operators like Kindred. Our focus on player safety and care for our customers will naturally continue with the same dedication.”

Quarterly Results Presentations

Kindred will publish results for the first quarter on 24 April 2020. The results presentation and Q&A session will be available through webcast as usual. The previously planned physical meeting at Regeringsgatan 25 in Stockholm will not take place. The arrangements for the results announcements for subsequent quarters will depend on the relevant advice from public authorities.

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About Kindred Group:

Kindred Group is one of the world’s leading online gambling operators with business across Europe and Australia, offering over 26 million customers across 11 brands a great form of entertainment in a safe, fair and sustainable environment. The company, which employs about 1,600 people, is listed on Nasdaq Stockholm Large Cap and is a founding member of the European Gaming and Betting Association (EGBA) and founding member of IBIA (International Betting Integrity Association). Kindred Group is audited and certified by eCOGRA for compliance with the 2014 EU Recommendation on Consumer Protection and Responsible Gambling (2014/478/EU).

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Navajo Gaming Appoints John James as Chief Executive Officer

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Navajo Gaming has appointed John James as its Chief Executive Officer.

John James brings more than two decades of professional gaming and hospitality experience to Navajo Gaming. He previously served as CEO of River Rock Entertainment Authority in Geyserville California. There he exemplified his strong leadership skills by identifying and implementing innovative operational improvements to grow revenue while improving morale through thoughtful strategic direction and mentoring.

Prior to that, he led numerous tribal casinos including serving as CEO of Muckleshoot Casino Resort in Washington, CEO of Soboba Casino Resort in California, COO of Morongo Casino Resort & Spa in California, and CEO of Gila River Gaming Enterprises in Arizona. Additionally, he has served in leadership positions for Seminole Gaming Inc., Pechanga Resort and Casino, and various successful Station Casino properties.

As CEO of Navajo Gaming, John James will oversee and manage Navajo Gaming properties in New Mexico and Arizona, as well as ensure that Navajo Gaming policies and objectives are met. His three main objectives are to strengthen Navajo Gaming and the hospitality economy, return revenue to the Navajo Nation, and provide additional jobs to members of the Navajo Nation.

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“Navajo Gaming has grown to a multi-million-dollar enterprise over the past 15 years. John James brings extensive gaming and management experience and leadership qualities to lead Navajo Gaming. James has been widely recognized as the industry’s ‘best of the best’ for his exceptional strategic and positive impact. He will stimulate continued growth and success for Navajo Gaming as we remain focused on job creation and enhancing the Navajo economy,” Quincy Natay, Chairman of the Navajo Gaming Board of Directors, said.

“I am honored to serve Navajo Gaming’s team and guests under the stewardship of the board and alongside such a strong management team. Our industry is transforming rapidly and there is tremendous opportunity for Navajo Gaming to capitalize on opportunities, elevate guest experiences and solidify our reputation as exceptional destinations where memories are made,” John James said.

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Dominique Dawes

Ocean Casino Resort to Open Olympics-themed Medal Bar

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Ocean Casino Resort announced the opening of Medal Bar: The Summer Games Pop Up Experience, located at 1927 Lounge on the casino floor across from The Gallery. Medal Bar’s opening ceremony will take place on Friday, June 28 hosted by Gold Medal Winning Gymnast, and member of Team USA’s Magnificent Seven, Dominique Dawes.

“We are so excited to embrace this celebratory global event as only Ocean can. From specialty themed cocktails and décor to iconic athletes and gaming activations; Medal Bar will be a must-see destination for our guests this summer,” Kelly Burke, SVP and Chief Marketing Officer for Ocean Casino Resort, said.

Located at 1927 Lounge, Medal Bar will offer an international flair with Americana spirit and a nod to the host country (Paris). Social moments and nostalgia will abound throughout the venue where guests can go for the gold in a myriad of ways including sipping worldly drinks and flights, playing games, cheering on their favorite athlete, and more. The festivities kick off on Friday, June 28 with an appearance by Olympic Gold Medal Winning Gymnast Dominique Dawes and will extend through Labor Day Weekend. Normal operating hours will be Thursday and Friday, 5 pm to 12 am, Saturday, 3 pm to 1 am and Sunday, 5 pm to 12 am. Medal Bar will be open daily from Friday, July 26 through Sunday, August 11 showcasing all of the thrilling events and competitions.

Guests can also celebrate the start of summer with the 3rd annual North Beach Fireworks Spectacular on Friday, June 28 at 9:30 pm. The demonstration, in partnership with Fireworks by Grucci, will showcase a dazzling ocean-front fireworks display presented by North Beach Atlantic City with several viewing locations including The Park and the world-famous Atlantic City Boardwalk. The event will be open to the public.

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idPair Inc

National Voluntary Self-Exclusion Program (NVSEP) to Begin Free Self-Exclusion Assistance in Four US Jurisdictions

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idPair Inc., an award-winning provider of safer gambling technology, announced the upcoming launch of free self-exclusion assistance in Colorado, Iowa, Michigan, and Tennessee this August, as part of the first phase of the National Voluntary Self-Exclusion Program (NVSEP). Where states require a notarized form, a free remote online notary will be provided through the NVSEP platform to remove any cost for individuals. Importantly, there will be no changes to the respective state programs or how operators receive and process the self-exclusion information as part of this initiative.

Depending on the state, self-exclusion options will be available for casinos, online sports betting, online casino, online poker, fantasy sports, and/or horseracing. Each jurisdiction has its own unique gambling landscape, and individuals seeking to self-exclude are encouraged to visit www.NVSEP.com/jurisdictions to learn more, including which products and properties have a supported option.

Jonathan Aiwazian, CEO of idPair, said: “For the first time ever, individuals seeking a wider level of protection can self-exclude from multiple states in a streamlined fashion. While today we announce our ability to provide free assistance with self-exclusion in each of these 4 states, more jurisdictions are on the way, as we accelerate toward our goal of removing barriers for people seeking protection across all gambling jurisdictions and products.”

With future phases of NVSEP planning a deeper level of integration and potential to directly connect with the Player Account Management (PAM) systems of gambling operators, gambling regulators can one day ensure that voluntary self-exclusions are instantaneously processed, providing immediate protection for those who opt-in to the program, a major leap in efficiency to the current processing times in some existing programs.

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NVSEP’s announcement of assisting consumers with Colorado, Iowa, Michigan, and Tennessee self-exclusions is the first step in a broader effort to expand responsible gambling measures nationwide.

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