The agreement governing the provision of Kambi’s sports betting technology and services to DraftKings will end no earlier than 30 September 2021, however, DraftKings is permitted to leverage its proprietary technology, in full or part, prior to that date.
As per contract terms, any sports betting revenue generated by DraftKings prior to 30 September 2021, either via Kambi or following a migration away from Kambi, will be subject to the same level of revenue share payments from DraftKings to Kambi.
The agreement also sets out a greater balance of responsibilities between Kambi and DraftKings during the upcoming transition phase, with the two companies committing to mutually support and cooperate during the migration period.
In addition, the agreement strengthens the security of Kambi’s data and intellectual property, while it has been agreed the partnership will not be extended to additional jurisdictions beyond January 2021, save where Kambi agrees to the additional service delivery.
This new agreement follows DraftKings’ acquisition of a technology and sports betting provider in a transaction which was completed in Q2 2020.
Kristian Nylén, Kambi CEO, commented: “Since partnering in June 2018, the Kambi-DraftKings relationship has proven to be highly rewarding for both parties, delivering first-class sports betting experiences to players across more states than any other sportsbook, and establishing Kambi and DraftKings as true leaders in their respective fields.”
“The agreement we’ve announced today works to secure a strong revenue stream for Kambi for the next 15 months, while our growing and exciting portfolio of partners leaves me with no doubt that Kambi is well placed to extend its leadership position over the months and years to come,” Nylén added.