PENN Entertainment and Kambi to terminate sportsbook agreement
6 October 2022
(PRESS RELEASE) -- Kambi Group plc and PENN Entertainment, Inc. have reached an agreement over the planned migration of PENN’s online and retail sportsbooks from Kambi to PENN’s proprietary technology. PENN plans to effect the online sportsbook migration in Q3 2023 with the retail sportsbook transition expected in 2024. The parties have also agreed to cooperate on additional U.S. state launches for the Barstool Sportsbook during the transition period.
The agreement provides for ongoing revenue share payments related to online and retail sports betting services for the duration of the provision of each respective service. Kambi will also receive one-time fees of $12.5 million for early termination and $15 million for transition services, the latter payable in installments through the transition period.
Since partnering in July 2019, Kambi and PENN have launched together in 15 U.S. states, covering 13 online launches and 25 retail properties, leveraging the exponential growth of US sports betting regulation since 2018.
Kristian Nylen, Kambi CEO and Co-founder said: “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 our data and intellectual property.”
Jay Snowden, PENN Entertainment CEO said: “Kambi has been a topflight 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.”