Polish legal association Graj Legalnie has written to the French ambassador to Poland warning that the French state may be benefiting from Kindred Group’s “illegal” presence in the market.
An open letter from Graj Legalnie chair Zdzislaw Kostrubala addressed to Étienne de Poncins has called for an “adequate response” from state-owned La Française des Jeux (FDJ) following its €2.5bn (£2.1bn) acquisition of Kindred Group, which completed in October.
As per FDJ’s corporate website, as of April 2023, the French state holds a 20% stake in the multi-vertical operator.
Kindred’s Unibet brand remains live in Poland with just sports betting after it pulled its online casino and poker offering last month.
That exit came as part of FDJ’s requirement for the combined business to only be live in regulated or regulating markets.
Kindred is live in Poland via its Trannel International subsidiary and its position in Poland has been questioned by local operators in the past.
Kostrubala’s letter, as seen by EGR, claims the Polish Treasury is being depleted of “tens of millions of zlotys” due to Kindred’s “illegal and criminal activities”.
The chair argued that Kindred has been live in Poland for at least five years despite not holding the appropriate licence.
Kostrubala wrote: “Taking into account the takeover of Kindred by FDJ, which took place in October, it should be emphasised that currently it is the French Republic that may be the beneficiary of the illegal activities of the entity that is depleting the Polish State Treasury by tens of millions of zlotys.
“Taking into account the mutual relations between Poland and France, the economic cooperation between the two countries, but above all the personal and financial security of Polish users, we ask the ambassador for an adequate response that will restore the principles of respect for the law in the activities of the entity whose dominant shareholder is the Republic of France.”
A similar letter has been sent to the Polish minister of finance, Andrzej Domański, and FDJ, according to Graj Legalnie.
Graj Legalnie, also known as the Play Legally Association, aims to remove the presence of the grey market in Poland as its modus operandi.
Poland’s online casino market is not open to competition and is run on a monopoly basis by state-owned Totalizator Sportowy, although there is a commercial model in place for sports betting.
A Kindred spokesperson said: ““Following Kindred’s acquisition by La Française des Jeux (FDJ), a leading lottery and betting and gaming operator in France, the new group reaffirms its commitment to operating exclusively in locally regulated markets, or in markets with a clear path to regulation.”
EGR has contacted FDJ for comment.
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