Kindred Group holds international gambling licences in Malta and Gibraltar and local licences in 11 jurisdictions including the UK, Denmark, France, Italy, Belgium, Malta, Estonia, Ireland, Germany, Romania and Australia, which are all monitored through local gambling authorities.
Kindred pays betting duties in all markets in accordance with applicable local laws. Currently, 42% of our gross winning revenue is derived from locally regulated markets and this number is growing.
Operating a regulated business
As a regulated operator, we need a licence or authorisation to offer our products to our customers. With no standardised gambling legislation in the EU and our strong strategic focus on local markets, we have over the years successfully applied for a number of licences, each with their own specific legal, operational and commercial requirements. We are subject to strict rules and provisions in the countries where we hold licences and compliance is a prerequisite for our business.
Due to the complexity of operating across licences, we have over the years invested heavily in our compliance and governance functions. We govern our business activities according to internationally recognised standards and our policies outline the way we conduct business in a responsible and transparent way. As we are subject to continuous audits by regulators and stakeholders, external verification of the way we work is business as usual for us. In 2017, Kindred went through 27 external audits with no failures in compliance noted.
Paying our fair share
Tax and regulations that apply to multinational organisations are complex. Kindred recognises this and takes advice from external experts in each of our markets and has added resources to our tax organisation to ensure compliance with relevant laws and regulations. As a key dimension of our group policies, tax transparency and disclosure have become increasingly important, we address this here.
The call for more transparent “fair tax” is evident from, among others, the OECD Transfer Pricing guidelines, which specify that, for the purpose of corporate taxation, profits are allocated and taxed where operations and functions are located. Kindred comply with the OECD Transfer Pricing guidelines and with EU and local laws. Kindred is also engaged with its trade associations in the recent tax discussions.
Total taxes paid 2017*
* Total taxes include VAT, betting duties, corporate and payroll taxes
Fighting Money Laundering
Kindred takes crime very seriously. Our systems and controls are designed to keep money launderers and other criminals away from our platform, and our employees are trained to prevent and detect money laundering. As an online gambling operator, we face many of the same challenges as financial institutions. We process a lot of transactions daily and each of these must be subject to strict anti-money laundering rules.
We have a number of systems monitoring each transaction to determine risk. Higher risk activity is checked by a dedicated team and this team will de-risk the situation through appropriate customer due diligence and necessary actions. When a customer is determined to be high-risk, an Internal Risk Report will be raised by the team. If the customer is kept at high-risk level after the internal investigations, the team will raise a report to the National Financial Investigation Unit (FIU) in the relevant market. In 2017, Kindred Group reported 300 suspected cases of money laundering to relevant authorities.