The first launches are due to take place in Q3 2019, initially focusing on Penn National’s brick and mortar casinos in Iowa and Indiana, with online to follow in 2020.
The agreement is not expected to have a material impact on Kambi’s 2019 revenues but has the potential to have a significant effect on its revenues in future years, depending on the speed of rollout of relevant state regulations. The scale of the opportunity will result in additional short-term costs, particularly in relation to state licensing fees with an acceleration in licence applications required to capitalise on Penn National’s vast US footprint.
Kristian Nylén, Kambi’s Chief Executive Officer, commented: “Kambi’s strategy has always been to partner with tier one operators, particularly those that share our vision and passion for sports and sports wagering.”
“In Penn National, we have found an ideal partner – one that is not only passionate about providing high quality sports wagering experiences to its customers, but a company that adheres to the highest level of ethical business standards,” Nylén added.
“It’s an honour for Kambi to be working with an organisation of the size and stature of Penn National, and we look forward to helping them become a national leader in the U.S. sports betting market in the coming years,” Nylén concluded.
Jon Kaplowitz, Penn National’s SVP of Interactive, said: “Sports betting represents an exciting growth opportunity for Penn National. Utilising Kambi’s best-in-class managed-trading services and omni-channel software allows us to effectively capitalise on this strategy.”
Source: GMB
