Penn and Kambi Ink Split Agreement
Penn Entertainment has decided to terminate its existing sports betting deal with Kambi and transition from a joint online and retail sportsbooks with the B2B sports platform provider onto its own proprietary system.
In a joint announcement with the software firm, the casino stated its decision to shift its online sportsbook during the third quarter of 2023 and its retail sportsbook later in 2024.
The new agreement will see revenue-share payments for the online and retail sportsbooks made during the transition period. Furthermore, Penn will pay Kambi a sum of $12.5m for terminating the contract before the agreed date and $15m for further transition services.
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 regard to our data and intellectual property.
The partnership between Kambi and Penn has seen them launch sportsbooks in 15 states across the U.S. The two brands have agreed to collaborate on further launches in the United States using the Barstool Sportsbook during the transition.
Kambi has been a top-flight supplier to Penn in our digital evolution. Kambi’s 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.
Kambi was in the news last month for partnering with North American casino operator Mohegan to provide a retail sportsbook solution to the gaming operator’s Ontario casinos, the Fallsview Casino Resort and the Casino Niagara. The provider has similar deals with Oaklawn and Argentina-based operator Ondiss.