Leading provider of sports betting technology solutions Kambi Group announced it has reached an agreement with PENN Entertainment over the migration of PENN’s online and retail sportsbook powered by Kambi to a PENN proprietary technology.
Ongoing Share Revenue Payments to Continue
According to the agreement reached between Kambi and PENN, the casino operator would effect the migration of its online sportsbook in the third quarter of 2023 while the retail sportsbook is expected to transition in 2024.
Commenting on the news, PENN Entertainment’s chief executive officer Jay Snowden outlined the huge role Kambi has played to helping PENN firmly establish itself on the ever-dynamic sports betting and gaming scene.
“Kambi has been a topflight supplier to PENN in our digital evolution,” Snowden said, pointing to the credentials of its partner as a provider of “well-proven, high-quality technology and services [that] have empowered PENN” in its pursuit of a “differentiated sports betting strategy.”
“.. I’m pleased to have secured our partnership to ensure a seamless transition for both companies,” he concluded.
Fees for Early Termination and Transition Services
Under the migration agreement, Kambi will receive one-time fees of $12.5 million for the early termination and $15 million for transition services, on top of ongoing revenue share payments that will continue for the duration of the provision of each respective service. The transition services fee will be paid in installments through the transition period.
Content with the terms of the agreement reached between the parties, Kambi’s chief executive officer and co-founder Kristian Nylen underlined that the agreement guarantees Kambi’s interests by securing “certain ongoing revenue … over the transition period” and setting out “the continued collaboration” between the sides by providing Kambi with “additional projections” related to its data and intellectual property.”
As part of the migration agreement, Kambi and PENN agreed to collaborate for the launch of the Barstool Sportsbook in additional states during the transition period.
Kambi and PENN initially partnered in July 2019 and since then have launched as partners in 15 US states, offering sports betting at 25 retail properties and in 13 online gaming markets to fully benefit from the booming sports wagering sector nationwide.
The migration agreement is the first major development for Kambi Group in October after a busy month in September that saw the betting tech supplier power the launch of MaximBet in Indiana, partner with Mohegan Gaming and Entertainment to provide its technology to Fallsview Casino Resort and Casino Niagara in the Canadian province Ontario, and ink a deal with tribal operator Ilani to enter Washington State.