Boston-based daily fantasy and sports book operator DraftKings announced it reached an agreement with Kambi Group for the mutual support and cooperation on the DraftKings’ migration from Kambi’s back-end platform services to the SBTech sports betting and iGaming platform.
Contract Termination Date Agreed
As part of the agreement, the contract between DraftKings and its previous technology provider Kambi will terminate September 30, 2021, without preventing the sports book operator from launching its proprietary technology earlier. In case of an earlier launch, Kambi will receive the full revenue until the agreed termination date.
“The agreement we’ve announced today works to secure a strong revenue stream for Kambi for the next 15 months, while our growing and exciting portfolio of partners leaves me with no doubt that Kambi is well placed to extend its leadership position over the months and years to come.”Kristian Nylén, CEO, Kambi Group
Kambi’s CEO pointed out the relationship between the two parties had proved to be highly rewarding, helping to establish the pair as true leaders in their respective fields while delivering first-class sports betting experience to players across more states than any other sports book.
Mutually Beneficial Partnership
DraftKings agreed to take additional steps during the period of transition from the Kambi’s back-end solution to its in-house technology to safeguard the intellectual property of its partner, as well as ensure an efficient transition for both parties.
“Kambi has been a collaborative partner and was instrumental in DraftKings being first to market in New Jersey with our sportsbook. We appreciate the efforts they have made, and will continue to make, in helping to ensure a smooth migration for us as we move on to our own platform.”Paul Liberman, President of Global Technology and Product, DraftKings
After the merger with the sports betting technology company SBTech, DraftKings switched up a gear and started rapidly expanding its operations across US jurisdictions. Within the space of a month, July, the sports book operator launched online casinos, first a standalone version in Pennsylvania, and then the first online casino app in West Virginia, and received a temporary sports betting permit in Illinois, while in the meantime opened a retail sports book at the Mardi Gras Casino in Black Hawk, Colorado.
Kambi released its first half financial results for 2020 last week, posting a slight uptick in revenue, to €42.7 million, despite the decline in revenue for the second quarter of the year to €14.8 million, 31.6% decrease year-on-year.