Penn to Migrate Sportsbook from Kambi
Major ports betting solutions provider Kambi Group has revealed that it and Penn Entertainment have both reached an agreement concerning the migration of Penn’s online and retail sportsbooks from Kambi to Penn’s proprietary technology system. The migration of Penn’s online sportsbook will take place in the third quarter of 2023, with the retail switch expected coming in 2024.
Kambi Group and Penn Entertainment have reached an agreement involving the migration of Penn’s online and retail sportsbooks from Kambi to Penn’s own proprietary technology system. ©jarmoluk/Pixabay
Agreement Opens Up the Door for Ongoing Revenue Share Payments
The prominent provider of sports betting solutions in the United States’ sports betting market, Kambi Group, has announced that it has struck an agreement with Penn Entertainment involving the migration of the operator’s online and retail sportsbooks from Kambi to Penn’s proprietary technology.
As per the deal, Penn, which up until quite recently was widely known as Penn National Gaming (PNG), will be expected to first migrate its online sportsbook during the third quarter of 2023, with the retail migration scheduled to take place in 2024. Meanwhile, during the intervening transition period, both parties have also agreed to work closely together on additional US state launches for the Barstool Sportsbook over the course of the period.
Somewhat relatedly, Penn exercised its option to acquire all remaining shares of media brand Barstool Sports as recently as August 2022. This news followed the even bigger news, first announced in February 2022, that Penn would make moves to acquire full control of Barstool Sports by the beginning of next year 2023.
The transition of Penn’s sportsbook away from Kambi and over to its own proprietary technology also opens up the path for ongoing revenue share payments related to online and retail sports betting services for the length of the provision of each respective service.
Finally, last but not least, Kambi will earn one-time fees of $12.5 million (£11.0m/€12.6m) for the early termination of the original sportsbook deal, on top of an additional $15 million for transition services, with the latter becoming payable in installments through the transition period.
Kambi Group and Penn Entertainment Have Launched Together in 15 US States Since July 2019
Though they only first joined forces together in July 2019, Kambi Group and Penn Entertainment (formerly Penn National Gaming) already have a storied history together, having collaborated on ventures in 15 US states, boasting the likes of 13 online launches and 25 retail properties.
Such a strong partnership lead Kambi co-founder and chief executive Kristian Nylen to put the most recent agreement concerning sportsbook migration in the context of a continued working relationship between the two moving forward:
“This agreement sets out the continued collaboration between the two parties over the coming years, one which secures certain ongoing revenue for Kambi over the transition period. Furthermore, the terms also provide Kambi with additional protections with regards to our data and intellectual property.”– Kristian Nylén, Co-Founder and Chief Executive, Kambi Group, Press Release
For its part, Penn Entertainment’s chief executive Jay Snowden praised Kambi’s top-tier technology and solutions, expressing pleasure at the fact that the two can continue working together:
“Kambi has been a top-flight supplier to Penn in our digital evolution. Kambi’s well-proven, high-quality technology and services have empowered Penn as we pursued our differentiated sports betting strategy, and I’m pleased to have secured our partnership to ensure a seamless transition for both companies.”– Jay Snowden, Chief Executive, Penn Entertainment, Press Release
Kambi Clinched Deal with Oaklawn Casino in Arkansas in August 2022
In other recent Kambi news, the technology solutions provider struck a lucrative multi-channel deal in August 2022 with Oaklawn Racing Casino Resort in the US state of Arkansas.
Kambi will provide both its on-property and online sportsbook solutions to the racetrack and casino, operating under the brand name ‘Oaklawn Sports’. Vital legislation, however, has yet to be passed in Arkansas, and online gambling of all sorts currently remains illegal in the Bear State.
Luckily for Oaklawn, Kambi can still safely continue to furnish the casino with its retail sports betting technology. Nylén asserted that the sportsbook provider was greatly anticipating broadening its relationship with Oaklawn – a casino with a supposedly important reputation:
“We’re very excited to strengthen our relationship with Oaklawn Racing Casino Resort and imminently extend our partnership into the mobile space. The combination of Kambi’s advanced technology and Oaklawn’s reputation as one of the premier thoroughbred tracks and casinos in the US makes this an enticing sports betting proposition.”– Kristian Nylén, Co-Founder and Chief Executive, Kambi Group, Press Release
Former Penn Entertainment Employee Charged with Insider Trading in June 2022
Back in June 2022, a former Penn Entertainment employee, which was still called Penn National Gaming (PNG) at the time, was charged with insider trading on a public company’s stock by the United States Attorney for the Eastern District of Pennsylvania, Jennifer Arbittier Williams.
The accused employee used to work as the Director of Backend Architecture at the operator’s iGaming division, known as Penn Interactive, personally netting approximately $560,000 in profits thanks to the illegal insider trading.
The employee’s knowledge that Penn Entertainment was looking at a potential acquisition of Score Media and Gaming, Inc. was what enabled them to engage in the insider trading. US Attorney for the Eastern District of Pennsylvania, Jennifer Arbittier Williams, stressed how such behavior damages the integrity of the United States’ financial markets:
“Insider trading undermines faith in our financial markets and harms ordinary investors who play by the rules. As alleged, David Roda placed himself above the law by using information to which he had privileged access to cheat the market and other investors. Our Office will continue to work with our law enforcement partners to maintain the integrity of the financial markets.”
