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FDJ launches a recommended all-cash tender offer for Kindred to create a European gaming champion

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  • In order to implement its ambition to become an international gaming operator, FDJ is announcing the filing of a tender offer to acquire the entire share capital of Kindred
    • Kindred is one of Europe’s leading online betting and gaming companies, operating the Unibet brand
  • The offer is being made at a price of SEK 130 per share in Kindred, which is listed on Nasdaq Stockholm
    • This price represents a premium of 24% over the closing price on 19 January 2024 and 35% over the weighted average price for the last 30 trading days, and corresponds to an enterprise value of €2.6 billion
  • This acquisition will create a European gaming champion with an enhanced financial profile
    • Second-largest operator in Europe’s gaming sector
    • Stronger revenue and earnings growth
  • FDJ and Kindred share high standards for responsible gaming and a business model that combines performance and responsibility
    • The combined Group will only operate on markets that are locally regulated or on the path of becoming regulated
  • This transaction will create value for FDJ shareholders. In particular, it is expected to lead to a more than 10% accretion in dividend per share, starting from the 2025 financial year to be paid in 2026
  • This offer is unanimously recommended by Kindred’s Board of Directors
    • Five key shareholders, holding a combined 27.9%[1] of the capital, have irrevocably undertaken to support the transaction and tender their shares
    • The transaction will take the form of an all-cash tender offer, which will be launched on 19 February 2024 for a maximum period of nine months. The completion of the tender offer remains subject to regulatory authorisations and to FDJ’s acquisition of at least 90% of Kindred’s capital

 

Stéphane Pallez, Chairwoman and CEO of FDJ Group, said: “I am pleased to announce today the proposed acquisition of Kindred. Fully aligned with our strategy, it will give the Group a diversified and balanced profile, based on several pillars: the monopoly activities, mainly the lottery, on our French historical market and, since November, in Ireland, with the acquisition of the Irish lottery operator PLI; and online sports betting and gaming activities open to competition in Europe. In this market, Kindred is one of the leading operators, combining strong brands, best-in-class technology platforms, an attractive growth profile and a committed approach to responsible gaming. Given their respective histories, strategic strengths and core values, FDJ and Kindred are highly complementary, and I will be delighted to welcome Kindred’s management team and many talented individuals into the combined Group following this transaction. The combination will result in a stronger strategic positioning and significant value creation for the benefit of our shareholders and broader stakeholders.”

Nils Andén, CEO of Kindred, said: “I’m delighted with today’s transaction announcement between FDJ and Kindred, creating a leading European gaming operator with the financial and strategic capabilities to further expand its global footprint. I believe that combining with FDJ, Kindred can accelerate the delivery of long-term strategic projects, continue to grow in core markets, and provide a trusted source of entertainment to customers. It will also speed up our path towards 100% locally regulated revenue. I’m excited to bring Kindred’s extensive experience and know-how into FDJ’s organisation, contributing to the development of a leading online gaming business. I’m also very proud that FDJ acknowledges and values the skilled employees and strong assets within Kindred.”

 

In order to implement its ambition to become an international gaming operator, FDJ is announcing the filing of an all-cash tender offer to acquire the entire share capital of Kindred, a company listed on Nasdaq Stockholm. This offer is unanimously recommended by Kindred’s Board of Directors.

 

Kindred, a leading operator in the European online betting and gaming sector

Kindred is one of Europe’s leading online betting and gaming operators:

  • Kindred provides a diversified online offering (sports and horse-race betting, poker and casinos), including brands such as Unibet and 32Red.
  • With revenue (after betting duties) of £893 million in 2023, Kindred is one of the top five operators in Western Europe, present in seven of the top ten European markets, including the Netherlands, the United Kingdom, France, Sweden and Belgium.
  • Kindred has been an online betting and gaming operator for over 25 years and has extensive digital expertise and proven technology platforms.

 

The combination between FDJ and Kindred will create a diversified European champion

This transaction will create a highly digitalised European champion that is diversified both in terms of its offering and its geographic footprint:

  • The FDJ Group’s international presence will expand to account for approximately 20% of its gross gaming revenue (GGR)[2], compared to 6% currently.
  • Online share of GGR will rise from 14% for FDJ to 29% for the combined Group.
    • Kindred’s cutting-edge digital expertise and technology platforms will accelerate FDJ’s digitalisation for online markets.
  • The combined Group will offer a wide gaming range on markets open to competition (online sports and horse-race betting, online poker and online casinos).
      • Online betting and gaming markets open to competition will account for 19% of the new Group’s GGR, versus 2% at present.
        • In France, thanks to the acquisition of Unibet, the FDJ group will become the third largest operator in the online sports betting and gaming open to competition sector.

 

FDJ and Kindred share high standards of responsible gaming and a business model that combines performance and responsibility. The combined Group will only operate on locally regulated – or on the path of becoming regulated – markets

FDJ and Kindred deploy the best practices in responsible gaming and sustainable development in their respective activities. This will enable the new Group to pursue a growth model that combines performance and responsibility.

The combined Group will only operate on markets that are locally regulated or on the path of becoming regulated and plans in particular to exit the Norwegian market.

 

FDJ’s acquisition of Kindred strengthens the FDJ Group’s financial profile

In 2023, Kindred generated revenue (after betting duties) of £893 million and recorded EBITDA of £205 million, with an EBITDA margin on revenue of 23%. Kindred is targeting EBITDA for 2024 to exceed £250 million.

The combination of Kindred and FDJ will create a Group that is significantly more attractive financially, including:

  • Accelerated growth in revenues and in free cash flow; accretion in recurring EBITDA margin – beyond FDJ’s standalone target of at least 25% by 2025;
  • A significant increase in the Group’s earnings per share and earnings growth.

FDJ will finance this acquisition using a large part of its available cash and through a bridge loan with leading French banks.

The FDJ Group:

  • Reiterates aiming a mid-term net debt to recurring EBITDA ratio of ≤2x;
  • Will aim to refinance the bridge loan on attractive market terms and will target an investment grade rating.

 

FDJ’s acquisition of Kindred will create value for FDJ shareholders

  • The combined Group will benefit from scale, iconic brands and proven technology platforms.
  • The consolidation of Kindred into the FDJ Group will create tangible value for the Group’s shareholders with a more than 10% accretion in dividend per share starting from the 2025 financial year to be paid in 2026, based on a distribution rate of 75% of the Group’s combined adjusted net income, post completion of the transaction.

 

An offer unanimously supported by both Boards of Directors

The tender offer has been supported by both Groups’ Boards of Directors. Kindred’s Board of Directors recommends that Kindred’s shareholders tender their shares to FDJ’s tender offer.

  • FDJ has obtained an irrevocable agreement from five Kindred shareholders, representing 27.9% of the capital, to tender their shares.
  • The offer price is SEK 130 per share, representing an enterprise value of €2.6 billion based on Kindred’s financial position at the end of 2023.
  • The proposed price represents a premium of 24% over the closing price on 19 January 2024, of 35% over the weighted average price over the last 30 trading days and of 36% over the last 90 trading days.

The tender offer will be launched on 19 February 2024 for a maximum period of nine months, subject to: the usual conditions precedent for a tender offer on the Swedish market; obtaining regulatory approvals, in particular from the Swedish Financial Markets Authority and the French Competition Authority; the amendment of Kindred’s articles of association to allow the implementation of a squeeze-out procedure in the event of FDJ acquiring at least 90% of Kindred’s share capital; and the acquisition by FDJ of at least 90% of Kindred’s share capital.

Gambling in the USA

New Hampshire Charitable Gaming Revenue Hits $24.8M in July

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New Hampshire charitable gaming revenue has reached $24.8 million last month, up from the previous year’s figure of $14.5 million, boosted by the opening of new casinos.

The latest figures come from the New Hampshire Lottery and Gaming Commission, which shows that of the 15 casinos, only four saw losses, while four others were not in operation last July.

The Nash Casino, which opened in March, generated the highest revenue of all the casinos – $5.8 million.

The highest year-over-year increase was seen by the Revo Casino Lebanon, which opened in a new location in December, and saw revenue rise by 321% from $387,836 to over $1.6 million.

Other notable rises were seen from the Lakes Region Casino, which generated an increase of 24% year-over-year and The Brook, which saw a 17% rise from $4.7 million to $5.5 million.

The biggest declines came from The Lucky Moose Casino, where profits dropped by 79% from $666,454 to $139,748, and the Gate City Casino, which saw profits fall by 16% from $2.7 million to $2.3 million.

Historic horse racing revenue rose by 85% year-over-year, from $10.6 million to $19.7 million, while games of chance revenue increased by 53% from $3.3 million to $5.1 million.

The post New Hampshire Charitable Gaming Revenue Hits $24.8M in July appeared first on Gaming and Gambling Industry in the Americas.

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Compliance Updates

Nevada Rep. Dina Titus to Add FAIR BET Act to 2026 Defense Budget

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Nevada Rep. Dina Titus is strategically pushing forward her Fair Accounting for Income Realized from Betting Earnings Taxation Act, commonly known as the FAIR BET Act. She intends to attach it to the 2026 National Defense Authorization Act (NDAA), a key piece of legislation that must pass annually. This maneuver, revealed on August 27, is designed to increase the chances that her proposal will be enacted into law.

The FAIR BET Act seeks to reverse a disputed provision introduced under former President Donald Trump’s One Big Beautiful Bill Act. The provision lowered the gambling loss deduction from 100% to 90%, which is set to take effect in January 2026. This change has met significant resistance from both the gaming industry and individual gamblers, who argue that it unfairly taxes money that they never actually won.

Representative Titus, who co-leads the Congressional Gaming Caucus, initially introduced this succinct bill in July. However, it stalled in the House Ways and Means Committee. To overcome this hurdle, she is leveraging a common legislative tactic by attaching the amendment to the NDAA. Around two decades ago, a similar strategy helped pass the Unlawful Internet Gambling Enforcement Act amid a port security bill.

The initiative enjoys strong support from major gaming industry leaders and state officials. Prominent executives from companies such as MGM Resorts, Caesars, and Wynn Resorts have expressed concern to lawmakers about the financial impact this deduction limit could have on both players and casinos. The American Gaming Association has also condemned the recent tax rule, stressing that it unfairly penalizes a legal and regulated industry.

The FAIR BET Act is gaining momentum across party lines. So far, ten members in the House have endorsed it as co-sponsors. In addition, a Republican counterpart titled the WAGER Act was introduced in July by Representative Andy Barr of Kentucky. In the Senate, Nevada Senator Catherine Cortez Masto has proposed a similar measure known as the FULL HOUSE Act.

Supporters emphasize the importance of this amendment for states like Nevada, where gambling significantly contributes to the economy. However, some critics argue that inserting tax policy changes into a defense authorization bill represents an overreach by lawmakers.

The amendment is currently under review by the House Rules Committee, with a vote expected within the next several weeks.

The post Nevada Rep. Dina Titus to Add FAIR BET Act to 2026 Defense Budget appeared first on Gaming and Gambling Industry in the Americas.

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Betr

Jake Paul-Linked Gambling App Betr Arcade Launches

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Betr, the gambling and fantasy sports operator founded by Joey Levy and social media personality-turned-boxer Jake Paul, has introduced Betr Arcade, a cash-based gaming product built on head-to-head competition. The new feature launched earlier this month inside the Betr Picks daily fantasy sports platform and includes four games: 21, Fruit Match, Crossout 21, and 5 Across.

Unlike traditional casino play, these contests pit players directly against one another, rather than against the operator. Entry begins at $1.25 per game, with a practice option available for those who want to try the formats without wagering before entering for money. You should also ensure that you take advantage of a Betr picks promo code before entering for real money.

Levy described Betr Arcade as the company’s dedicated skill-gaming product, noting that it is already live in 29 states. He added that more titles and additional categories will be released in the coming months, broadening the scope of the Betr app beyond fantasy and skill-based contests.

The launch arrives as legal real-money online casinos are only offered in seven states, meaning that most of the nation cannot access regulated content. Focusing on peer-to-peer platforms, which are not subject to the same regulations as casino sites, Betr has been able to provide its services in states that ban casino play.

That includes big markets like Florida, Texas, and California, which have previously seen regulators crack down on against-the-house fantasy games. The peer-to-peer approach has allowed Betr to continue operating while expanding into new skill-based products.

Betr is not the only operator adapting its model to navigate state-level restrictions. Rival daily fantasy sports (DFS) operator PrizePicks has confirmed it no longer offers against-the-house Pick ’em contests in the US, shifting entirely to its peer-to-peer Arena product.

The change took effect on Aug. 22, according to a company spokesperson, who highlighted the move as an effort to deliver a more social and sustainable DFS product.

Previously, PrizePicks offered Pick ’em in 17 states and Washington, D.C., including major markets like California and Texas, where fantasy sports remain unregulated. Arena, first launched in January 2024, requires players to pay an entry fee to join competitions against other users, with prizes awarded to the highest-scoring lineups.

The format has been positioned as less vulnerable to regulatory pushback, as some state authorities have likened Pick ’em contests to sports betting.

PrizePicks had already shifted to Arena-only play in California in June, shortly before the Attorney General’s office issued an opinion stating that all DFS products violated state law. Following that decision, Underdog Fantasy also removed its Pick ’em contests in California.

Currently, PrizePicks is active in 45 states, Washington, D.C., and every Canadian province except Ontario. It has also secured a license in Puerto Rico.

The post Jake Paul-Linked Gambling App Betr Arcade Launches appeared first on Gaming and Gambling Industry in the Americas.

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