The collaboration between Kambi Group and Penn Entertainment has entered a new phase with an extension of their agreement. This extension, while maintaining existing revenue streams for Kambi, coincides with Penn Entertainment’s decision to develop its proprietary technology for retail sportsbooks.
Overview of Agreement Extension:
Kambi Group has prolonged its partnership with Penn Entertainment, ensuring the provision of sportsbook products until December 31, 2025. Originally set to expire in July 2024, this extension covers a range of technologies including kiosks, point-of-sale terminals, odds boards, and Bring Your Own Device (BYOD) technology. The agreement encompasses 30 properties across 13 US states, representing a significant footprint in the burgeoning US sports betting market.
Kambi’s Perspective:
Kristian Nylén, CEO and Co-Founder of Kambi, expressed satisfaction with the extended agreement, highlighting its importance in securing additional revenue for the company. Nylén emphasized Kambi’s commitment to providing cutting-edge technology and premium services to partners like Penn Entertainment. Despite Penn Entertainment’s decision to transition to proprietary technology, Kambi remains steadfast in delivering value until the contract’s conclusion in 2025.
Penn Entertainment’s Strategic Shift:
Penn Entertainment’s decision to develop proprietary technology marks a strategic shift in its approach to sports betting operations. By migrating services to in-house platforms, Penn Entertainment aims to exert greater control over its sportsbook offerings and potentially enhance its competitiveness in the market. This move underscores the company’s ambitions to innovate and differentiate itself in an increasingly crowded landscape.
Revenue Sharing Dynamics:
Despite the transition to proprietary technology, the revenue share attributed to Kambi will remain unchanged until the end of 2025. This arrangement underscores the stability and predictability of revenue streams for Kambi, irrespective of the platform through which revenue is generated. Penn Entertainment’s commitment to maintaining existing revenue sharing terms reflects a collaborative approach to partnership management.
Expansion into New York:
In addition to the agreement extension, Penn Entertainment recently announced its acquisition of Wynn Interactive’s New York license for ESPN Bet. This strategic move signals Penn Entertainment’s intent to expand its footprint into one of the largest and most lucrative sports betting markets in the United States. By leveraging the ESPN brand and its associated media assets, Penn Entertainment aims to establish a strong presence in New York’s burgeoning sports betting landscape.
The extension of the partnership between Kambi Group and Penn Entertainment signifies a continued commitment to collaboration and mutual success in the dynamic sports betting industry. While Penn Entertainment embarks on a journey to develop proprietary technology, Kambi remains a trusted partner, providing innovative solutions and unwavering support. As both companies navigate the evolving landscape of sports betting, their strategic moves underscore a shared vision for growth and excellence in service delivery.