world cup fallout sees kambi eyeing global growth

world cup fallout sees kambi eyeing global growth

by 27.07.2018 0 comments

On the back of a successful second quarter of 2018, turnkey sports betting service Kambi is setting its sights on expansion across a number of key markets.

Aided by the beginning of the Russia World Cup, hailed as “a huge success for Kambi and our operators, with turnover, revenues and active players reaching all time highs” by CEO Kristian Nylén, the firm is now focused on a concerted level of growth with a number of clients.

Addressing the impact on revenue deals with current clients in Colombia (Corredor Empresarial S.A), Romania (Stanleybet) and South Africa (Sun International), could have in the near future Nylén explained:

“I think especially with Corredor there has been some official data that Colombia’s market is growing quite fast, and we strongly believe that Corredor has very very good potential to be a market leader eventually. I don’t think they are there at the moment but I think they are in a good way to get there.

“When it comes to Stanleybet, I don’t expect a huge amount of revenues coming from Stanleybet [until further development takes hold in roughly a years time].

“With Sun International, they had an existing sportsbook before us so that should be an immediate impact on revenues.”

Before adding on the retail aspirations of Sun: “I don’t think at the moment they are doing very much on the retail, [but] i know they are interested in operating a large chunk in retail as well.

“Also they are looking at owning casinos in a few countries in South America, so I also expect them to start sports betting there at some point.”

A particular focus for many organisations at the moment, and moving forward, is the United States, and its many possibilities opened up since the repeal of PASPA over two months ago.

Kambi has been busy in the market, securing deals with DraftKings and Rush Street Gaming, who have also launched a Colombia facing sportsbook with Kambi, as Nylen welcomed the fierce competition “I think it’s positive and not negative”.

Going into further depth regarding its US operations, Nylén explained: “In Pennsylvania, sports betting can only be offered through an exclusive agreement with a land-based casino, after the state regulator limited the number of sports betting licenses a casino can have to just one – making market entry all the more difficult.

“However, Kambi will gain entry to the market through its recent deal with Rush Street Gaming, which owns two of the states twelve casinos.  

“Current legislation in New York, which is limited to retail only, will cap the number of operators that can offer sports betting to just four commercial land-based casinos.

“Of those four casinos, one is owned by Rush Street Gaming, while another (Del Lago) has a deal in place with DraftKings, potentially handing Kambi 50% of the regulated market.

“With many other sports betting operators and supplier likely to be blocked out.

“In both instances, land-based operators are an essential route into the market, for all sports betting operators and suppliers, and we expect this reliance to continue as more states prepare for regulation.”

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