Kambi Group reaches agreement with PENN Entertainment
PENN will supply Kambi with proprietary sportsbook technology during Q3 of 2023.
Kambi Group and PENN Entertainment have together announced that the latter will be migrating away from using the former’s online and retail sportsbook technology. Instead, PENN will be using it’s own proprietary system.
There will be a transition period, where ongoing revenue share payments will be provided as well as one-time fees related to early termination and transition services. Kambi will receive $12.5m for early termination and $15m for transition services respectively.
The migration process is expected to end in 2024, when Kambi will begin operating a retail sportsbook with PENN’s technology.
Further to this agreement, the two companies have also agreed to cooperate on additional US state launches for PENN’s Barstool Sportsbook during the transition period.
They first joined forces in July 2019, when the sportsbook and sportsbook supplier launched together in 15 US states. They also combined for 13 online launches and provided sports betting services to 25 retail properties.
Kambi CEO and co-founder Kristian Nylen commented: “This agreement sets out the continued collaboration between the two parties over the coming years, one which secures certain ongoing revenue for Kambi over the transition period. Furthermore, the terms also provide Kambi with additional protections concerning our data and intellectual property.”
PENN Entertainment CEO Jay Snowden agreed with his Kambi counterpart, saying that the long-established partnership between the two companies had proven fruitful.
He commented: “Kambi has been a topflight supplier to PENN in our digital evolution. Kambi’s well-proven, high-quality technology and services have empowered PENN as we pursued our differentiated sports betting strategy, and I’m pleased to have secured our partnership to ensure a seamless transition for both companies.”
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