Kindred Consolidate Italian Market Presence

Under his flagship Unibet sportsbook brand, Kindred Group Plc has pushed to consolidate its Italian market presence.

The decision sees the operator listed in Stockholm withdraw its subsidiary 32Red (32Red.it) from the Italian market.

Since 2012, until the company’s £175 purchase by Kindred Plc in 2017, 32Red had retained an Italian sportsbook presence, a strategic acquisition mainly undertaken to dramatically boost Kindred’s market presence within the UK.

32Red told its Italian player base this week that it would terminate its services on 30 November, giving all accounts the option of moving to Unibet.it.

Kindred, releasing a statement to SBC, stressed that its closure of 32Red was simply a strategic move to focus the company’s leading pan-European sportsbook property, Unibet, on its Italian market presence.

“Kindred remains committed to the Italian market. We are constantly reviewing our brand footprint and wish to provide our customers with the best brand option and experience,” it commented on the matter.

Kindred clarified that 32Red ‘s Italian withdrawal was not due to recent market developments in which, across all wagering verticals (retail and online), the government sanctioned a temporary 0.5 percent turnover levy.

As part of the ‘Covid Revival Decree,’ the turnover tax was implemented as the Italian government aims to secure EUR 90 million in the next 12 months to protect Italian grassroots sports programmes affected by the pandemic.

Bookmakers have complained to Italy’s ADM customs and monopoly department about the addition of a 0.5 percent turnover tax rate, alleging that Italy has introduced the highest European sportsbook tax rate equal to 33-34 percent GGR without holding any industry consultations.

Flutter Entertainment announced last month that it was investigating whether its exchange product should be removed from the market because it could not work with any sort of turnover tax levied on its business model.