Penn agrees terms of split from Kambi

The shift for the online sportsbook will happen during Q3 2023, while the retail sportsbook will move at some point in 2024.

As part of the agreement, revenue-share payments for the online and retail sportsbooks will be made during the transition period, and Kambi will receive an early contract termination payment of $12.5m, as well as $15m for further transition services.

Kristian Nylén, Kambi CEO and Co-Founder said of the transition: “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.”

In 2021, Penn acquired Score Media and Gaming in a $2bn deal, which paved the way for Penn to split from Kambi. 

Meanwhile, Jay Snowden, Penn Entertainment CEO, added: “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.”

During the length of the partnership, Kambi and Penn launched in 15 US states, and both have agreed to cooperate on any further US launches using the Barstool Sportsbook during the transition.

Recently, Kambi agreed a €38.5m ($37.9) deal to acquire Shape Games, an amount which could rise to €78.1m if performance-related bonuses are met. The purchase of Shape Games comes following a pre-established partnership between the two.