Daily fantasy sports contest provider, DraftKings, has entered into a multi-year sportsbook agreement with iGaming innovator, Kambi Group plc (KAMBI:FN Stockholm). The B2B provider of sports betting services to licensed B2C gaming operators was selected by the Boston-based company to support the expansion of its product portfolio.
The agreement will see the Kambi technology leveraged by DraftKings, which recently entered the sports betting market by way of New Jersey, having partnered with Resorts Casino Hotel in Atlantic City on June 1. DraftKings is one of a handful of companies that have moved quickly to capitalize on the budding legal sports betting market in the U.S. since the May 14 decision by the Supreme Court declaring the Professional and Amateur Sports Protection Act (PASPA) unconstitutional.
According to the press release, the terms of the deal also provide for expansion of the partnership upon the implementation of commercially agreeable framework in the U.S.
The uncertainty of the regulatory timetable in the U.S. makes the impact on Kambi’s revenues this year difficult to forecast, although the Malta-headquartered company reportedly believes that the collaboration could, in the long term, provide a considerable source of income.
Chief Executive Officer for Kambi Group plc, Kristian Nylén, communicated that he is “delighted” the company has been selected to partner with DraftKings as it enters the sports betting market.
“The Kambi technology is unique in that it empowers operators to innovate and create differentiated sports betting experiences, providing the flexibility which will be crucial in the developing U.S. market,” explained Nylén.
In other sports betting news, the new partnership between DraftKings and the Boardwalk casino is on the heels of European online and retail sports betting operator, Paddy Power Betfair’s, acquisition last month of a controlling stake in U.S. daily fantasy sports firm, FanDuel. The Dublin-headquartered bookmaker entered the American daily fantasy sports market in 2017 following its $48 million purchase of PlayDraft.com.
For Kambi, this most recent deal is its second major deal this year, having recently partnered with regional casino operator Rush Street Gaming subsidiary Rush Street Interactive.