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Kambi Group and PENN Entertainment reached an agreement to extend the term of their retail sportsbook platform contract to Dec. 31, 2025.
This renewal replaces the previous agreement, which was set to expire in July 2024. According to the agreement, Kambi will continue to supply PENN’s retail casinos nationwide with its assortment of sports betting products, including:
- Kiosks
- Point-of-sale terminals
- Odd boards
- Bring Your Own Device technology
Kambi currently supports PENN’s land-based sports betting offering in 13 US gambling states across 30 properties.
Deal protects Kambi’s revenue share as PENN migrates to new sportsbook tech
Over the extended term, PENN intends to migrate its retail sportsbooks to its proprietary technology, which it will transfer its retail sportsbook products over to.
Under the terms of the revised agreement, any retail sports betting revenue generated by PENN will be subject to the same level of revenue share payments to Kambi until the contract expires. This clause remains in place whether the revenue comes from a Kambi platform or through the new PENN platforms.
Kristian Nylén, CEO and co-founder of Kambi said in a news release:
“We are pleased to agree to this extension to our retail sportsbook agreement with PENN Entertainment, through which we have secured an important additional revenue stream for Kambi until the end of 2025.
As the industry’s leading sportsbook provider, both online and in retail, we are committed to providing our partners with cutting-edge technology and a premium service, which PENN’s vast retail estate will continue to benefit from throughout the duration of the extended contract.”
Kambi and PENN signed a deal on Barstool Sportsbook migration in 2022
In October 2022, Kambi and PENN Entertainment announced an agreement on Barstool Sportsbook moving to its own platform. The two parties agreed to cooperate in the launch of PENN’s flagship brand in additional US states.
The transition of the US online sportsbook was planned for the third quarter of 2023, whereas the retail sportsbook move was scheduled to take place in 2024.
According to the agreement, Kambi agreed to receive one-time fees of $12.5 million for early termination and $15 million for transition services.
Apart from PENN, Kambi has over 40 customers, which include:
- ATG
- Bally’s Corporation
- Corredor Empresarial
- Kindred Group
- LeoVegas
- LiveScore
- Rush Street Interactive
Kambi employs more than 1,000 staff members across offices in Malta, Australia, Denmark, the Philippines, Romania, Sweden, the UK, and the United States.
