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, noted the services provider. Kambi will also receive one-time fees of US$12.5 million for early termination and US$15 million for transition services, the latter payable in installments through the transition period.
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 to 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.”
Since partnering in July 2019, Kambi and Penn have launched together in 15 US states, covering 13 online launches and 25 retail properties, “leveraging the exponential growth of US sports betting regulation since 2018.”
Penn exercised back in August its option to acquire all remaining shares of media brand Barstool Sports, after first announcing in February that it would be taking full control of the business by early 2023. The Barstool Sportsbook migration is an example of a general trend toward vertical integration within the U.S. gaming industry.