Unibet — the Stockholm-based online sportsbook — is planning its exodus from North America. If the company’s strategy goes as planned, by the second quarter of 2024, Unibet will have completely removed itself from the United States and Canada.
But the business of sports betting is booming. So why on Nov. 28 did ownership Kindred Group announce its American exit?
Let’s dive into it.
Unibet’s Profit Loss and Low Market Share
Reports show that the third-quarter earnings for Unibet totaled $16 million after taxes. A year ago, that number was four-and-a-half times higher last year at $73 million.
Additionally, Unibet found it to be too much of a challenge to keep up with the FanDuels and DraftKings of the industry when it came to market share. Whereas FanDuel and DraftKings regularly boast 30% of the market share or more, Unibet’s market share in several instances was in the single digits.
Adding to Unibet’s woes was the fact that the book was only available in Arizona, Indiana, New Jersey, Pennsylvania, and Virginia.
Unibet Gaining Elsewhere
Unibet’s presence in North America failed to translate into success, but according to the Kindred Group, the bets that the company has made elsewhere are paying off. They’ve inked a deal with the NHL that makes them the official betting partner of Sweden.
Additionally, the scaled-back company claims this new chapter will allow it to shift its focus to core markets like hyper-local casino brands.
Unibet’s Other Impact
Focusing on money-making core markets and moving away from the US and Canada might have been the right move for Unibet’s parent company. For more than 300 workers, however, Unibet’s move has left them jobless.
Eliminating the 300 jobs will help Kindred save a projected $50 million.
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