Sports betting technology provider Kambi Group plc today announced that it has extended its existing contract with daily fantasy sports and sports betting operator DraftKings.
Kambi and DraftKings first announced their sports betting partnership in June 2018. Under the terms of their agreement, the European provider agreed to power the operator’s sports betting operations in New Jersey. Last year, DraftKings made history by becoming the first operator to launch a mobile betting app in the state.
Among other things, the newly extended contract between the two companies covers eight additional states where sports betting is legal or are on the verge of legalizing the practice. The eight new states covered by the contract are Colorado, Indiana, Iowa, Maine, New York, Pennsylvania, Tennessee, and West Virginia.
Kambi said in a press release issued earlier today that the extended deal will secure the technology provider’s “current revenues in New Jersey for at least the short-to-medium term, while also providing the opportunity to generate incremental revenues as and when the partnership enters the additional jurisdictions.”
News about the extended partnership between Kambi and DraftKings arrives as the betting operator is gearing up preparations for its entry into the nascent New York sports gambling market. The company is set to host this coming Friday, August 22, a grand opening ceremony for its retail sportsbook at del Lago Resort & Casino in Upstate New York.
A Symbiotic Relationship
Commenting on his company’s partnership with DraftKings, Kambi CEO Kristian Nylén said today that they have developed a “symbiotic relationship” over the past 12 months, “working closely to deliver a high-quality sportsbook, which has improved over time.”
DraftKings’ CEO, Jason Robins, added that Kambi has been a key partner for his company, providing it with “backend sports technology that has enabled us to offer our customers an engaging product in a highly competitive market.”
In New Jersey, DraftKings provides online betting services under a license issued to Atlantic City’s Resorts Casino Hotel and operates a retail sportsbook at the Boardwalk property.
Mr. Robins said in a recent interview that DraftKings plans to enter more sports betting markets and hopes to be able to do that by the end of the upcoming NFL season. The executive further noted that their New Jersey operations have become a “huge part” of their business, accounting for around a third of the company’s overall revenue.
With that said, daily fantasy sports is still DraftKings’ primary vertical but it is growing at a much slower rate than sports gambling. Its DFS product saw a 15%-20% growth over the past year, compared to a 50%-60% annual growth recorded by the company’s New Jersey mobile sportsbook.
New York is the third state where DraftKings will be launching its betting product. Last fall, the company debuted a brick-and-mortar sportsbook at Scarlet Pearl Casino in Mississippi. That facility is powered by IGT.
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