An interesting development around one of the sports betting licensees in Connecticut this week saw a technology partnership deal being amended to free space for additional partners.
MGE Moves to Free Space
Sports betting technology supplier Kambi Group announced it reached an agreement with Mohegan Gaming & Entertainment (MGE) regarding the terms of their sports betting deal signed in anticipation of the upcoming regulated market in Connecticut.
The Malta-based B2B technology provider, following a competitive process in March 2019, was selected by the operator behind one of the state’s two casinos, Mohegan Sun, to power its online and on-property betting products at its signature integrated casino and entertainment resort.
With a track record of lawful and responsible delivery of flexible quality sports betting products, trading and risk management services, and excellent speed to market, for MGE to choose Kambi was no brainer back then, but recent developments suggest the tribal operator has second thoughts now.
The amendment to the terms of the sports betting service agreement between MGE and Kambi allows the tribal operator to collaborate with alternative parties for both retail and online sports betting, as long as the projected financial interest of the technology supplier for the full 5-year duration of the contract is preserved.
“While we had been looking forward to supporting MGE become a sports betting leader in the Connecticut market, the amicable discussions between both parties have found a positive conclusion, with MGE respecting Kambi’s financial interests for the duration of the original agreement.”Kristian Nylén, CEO and Co-Founder, Kambi Group
CT Lottery Announcement Date Approaching
The agreement amendment comes just ahead of the much-anticipated announcement from the Connecticut Lottery regarding its selection process for a sports betting operator scheduled for July 6. Lawmakers in the state authorized the lottery to offer mobile sports betting on top of 15 retail sports wagering locations statewide.
And while the third licensee, the Mashantucket Pequots, has already announced that DraftKings will be powering the tribe’s sports betting offering at Foxwoods Resorts Casino and online, the amendment to the agreement between MGE and Kambi suggests the Mohegan tribe has already another operator in mind.
Coincidentally, earlier in the week MGE announced the launch of a new digital division that will focus on online gaming and sports betting operations at the casino property, to respond to the gathering speed gaming expansion in the US. As part of the announcement, MGE appointed Rich Roberts as president and Aviram Alroy as vice president of the new digital unit.
Outside of the scope of the amended agreement, Kambi and MGE are considering forming other exclusive sports betting alliances in jurisdictions where MGE has secured market access.
“As we have seen first-hand in Pennsylvania, Kambi provides great product and is therefore one we look forward to potentially collaborating with in new market opportunities.”Aviram Alroy, VP, Product, Mohegan Digital