If gambling company Kindred is to sell off its assets or be acquired soon, it might now have one more legitimate asset for buyers to consider. The proprietary technology platform that recently started powering Unibet online casino in New Jersey is now doing the same in Pennsylvania.
Should Kindred maintains its status quo, the new tech platform may help Unibet compete for a bigger share of the market for online casino play in Pennsylvania. With the Unibet migration in Pennsylvania complete, Kindred is turning its attention to other US markets.
Kindred migrates Unibet Pennsylvania to new tech platform
According to a Tuesday press release from Kindred Group, Kindred’s US Unibet online casino is now completely running on the company’s new technology platform. Unibet online casino operates in New Jersey and Pennsylvania. Kindred made the switch in New Jersey in April.
Kindred also offers online sports betting via the Unibet brand in those states plus three others. Those are Arizona, Indiana, and Virginia. Real-money online casinos remain illegal in those three states.
In the release, Kindred’s interim CEO Nils Andén shared that Kindred plans to also migrate its sports betting-only apps in those three states to the new platform. However, an official timeline for that migration remains unconfirmed.
Andén stated that New Jersey users “have reported enhanced design, navigation, and stability” since the app in that state began operating on the new platform. Originally, Kindred touted improved security and a more personalized experience for players.
While it remains unclear whether Pennsylvanians will report similar experiences, the future for Kindred is similarly uncertain. The further utilization of Kindred’s tech platform could prove quite timely for the company.
Kindred’s platform might not be proprietary for long
Shortly after migrating the New Jersey operations to the new platform, Kindred announced that it retained Morgan Stanley for a strategic review. At the time, the company said no options were off the table as it sought a way to deliver more value to shareholders.
Kindred shares are available on Nasdaq Stockholm. The company said that it has set no deadline for completion of the review. As all options are seemingly on the table, that would include a complete sale of all operations or selling off parts of the business. All assets could be individually up for sale, then, including the tech platform that Unibet runs on in New Jersey and Pennsylvania.
Sources close to Kindred’s executives stated in May that an outright sale of the company is highly desirable.
Successful operations in Pennsylvania increase the value of the tech platform. By extension, that makes Kindred’s US operations more valuable, too. Those operations could already be attractive due to Unibet’s licensure in two of the three most lucrative US online casino markets (Michigan being the market that Unibet has yet to enter).
However, Morgan Stanley may ultimately recommend that Kindred not sell any of its assets. Should that prove the case, the new tech platform might assist Kindred in being more profitable in Pennsylvania.
Unibet struggling for market share in Pennsylvania online casino market
Pennsylvania has established itself as the most lucrative market for online casino operators in the US. In four of the last eight months for which the Pennsylvania Gaming Control Board (PGCB) has reported online casino revenue numbers, those monthly totals have broken nationwide records.
In May, the latest such month for which the PGCB has released figures, Unibet’s licensed partner in Pennsylvania (Mohegan Sun Pocono) reported the second-smallest amount of revenue among the nine licensees. That month did not represent an outlier for Unibet, either.
To put the numbers in further context, Unibet’s $2.9 million in May online gaming revenue in PA represented just 1.7% of the statewide total. While Unibet may have work to do in terms of improving Pennsylvanians’ awareness of its brand, an improved customer experience could assist in increasing that share.
At the very least, if Unibet continues to bring up the rear in Pennsylvania online casino revenue, Kindred can’t blame a technology partner. That is now handled in-house.