- Kambi powers sportsbooks in New Jersey in Pennsylvania.
- The company signed two sports betting deals during the third quarter of the year, one with Penn National Gaming and the other with JACK Entertainment.
- Kambi was able to come out of Q3 with an increase in year-on-year revenue despite there being no major soccer tournaments this summer.
TALLAHASSEE, Fla. – The third quarter of the year is usually a slow time for the sports betting industry. Even so, Kambi was able to pull away from Q3 with an increase in year-on-year revenue and operator turnover growth.
According to the Kambi’s Q3 2019 Financial Report, the company generated $25.5 million in revenue compared to $22.75 million in revenue at this time last year. Although, profit after tax was only $2.55 million for Q3 this year as opposed to $3.66 million last year. Kambi still believes it had a solid financial performance.
“The third quarter is traditionally a challenging one for the sports betting industry, particularly in a year with no major summer football tournament. This along with our ongoing investments to capitalize on the huge US opportunity, was the reason for the year-on-year decrease in operating result,” said Kristian Nylén, CEO of Kambi.
“However, despite the tough World Cup comparatives and relatively quiet July sporting calendar, I’m pleased to report Kambi Q3 revenue grew 12% year-on-year while operator turnover increased 23%.”
Kambi was able to secure two strategic deals in Q3 for expanding their footprint throughout the U.S. legal sports betting industry.
The first one came in July when they partnered with Penn National Gaming. The deal puts Kambi in charge of powering all of Penn National Gaming’s retail sportsbooks.
“With market access to as many as 19 states, Penn National was always a key US target for us,” said Nylén. “In addition to the land-based establishments Penn National operates, the company has a sports betting philosophy that complements our own, which bodes well for a long and successful relationship.”
That relationship has already started to bear shape, as Kambi replaced William Hill at Hollywood Casino at Penn National Race Course last week.
The other major partnership came with Kambi announcing that it had a deal in place with JACK Entertainment, pending regulatory approval in Ohio. Jack Entertainment properties are designated as sportsbook locations in Ohio according to a bill currently sitting in the state’s legislature.
If OH HB 194 is passed as-is, it would put Kambi in prime position to have a leading advantage over sports betting in Ohio.
“In general, Kambi remains well-positioned for the future and I look forward to building on our successes in Q4 and beyond,” said Nylén.
The final months of 2019 should prove to be very profitable for all those in the sports betting industry, given that the NFL is now in full swing and will be nearing the playoffs at the end of the year.
– In his career, Hasan has worked both local and state government positions—including the Attorney General’s Office in Florida. On top of being familiar with the legislative process, he has also been researching and writing on the legality of sports betting across the US. Outside of work you’ll most likely find him producing or playing music, playing sports, or working on creative writing projects. You’ll also catch him at Doak Campbell Stadium cheering on the Noles.