International edition
September 29, 2020

Following announcement of 32Red acquisition

Kindred reportedly eyeing purchase of Danske Spil

Kindred reportedly eyeing purchase of Danske Spil
Reports emerged late last week that Kindred Group may be eyeing further expansion of its operations through the acquisition of Danish state-owned gambling operator Danske Spil for around DKK4 billion (USD 570M). The news first appeared in Danish business
Denmark | 03/01/2017

Reports emerged late last week that Kindred Group may be eyeing further expansion of its operations through the acquisition of Danish state-owned gambling operator Danske Spil for around DKK4 billion (USD 570M). The news first appeared in Danish business news outlet Børsen and was conveyed to English-speaking readers by Calvin Ayre.

I

t was last week again when Kindred Group announced that it would purchase smaller gambling operator 32Red for the amount of £175.6 million. The acquisition deal is set to further consolidate Kindred Group’s presence in one of its core markets – the UK.

As for the Malta-headquartered company’s bid to buy Danske Spil, its interest could be explained with the fact that Denmark has turned into an attractive jurisdiction for international iGaming operators after it regulated its market back in 2012. What is more, as Kim Olesen, Kindred Group General Manager for Denmark, told Børsen, Danske Spil has remained a force to reckon with in the local market, although a number of major international operators have entered Denmark since 2012.

However, it is rather doubtful whether a deal would eventually take place. It seems that key Danish officials are more keen on Danske Spil remaining a state-managed entity.

First news that the country was contemplating on the possibility to sell the gambling operator emerged last spring. It was reported back than that Danske Spil’s assets might be split and its online betting and gaming operations might be sold to interested private gambling operators. As for its highly profitable lottery assets, they were to remain under state control.

Split opinions emerged on the sale of the state-run company and, as mentioned above, MPs do not seem very convinced that the move would be the right one.

The Danish gambling regulator reported on Monday that the amount of DKK3.7 billion was generated from online gambling operations in 2016, up from DKK3.4 billion in 2015. Sports betting was the most lucrative segment last year with gross gaming revenue of DKK2.2 billion. The amount of DKK2 billion was reported for 2015. Online casino games, excluding poker, generated the total amount of DKK1.4 billion, up DKK1.3 billion from a year earlier. Online poker operations contributed DKK148 million last year. Revenue from that particular game dropped slightly from DKK165 million in 2015.

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