Malta-based Kambi Group, a B2B supplier of managed sports betting services, has emphasised the burgeoning potential of the nascent US sports betting market in its latest financial results for Q2 2018.
Commenting on a trading period that has seen 25 per cent year-on-year growth in revenue to €17.6m and operating profit of €2.4m, CEO Kristian Nylén noted that of long-term significance was the May ruling that saw the overturning of PASPA and a ban on sports betting in the US.
He said: “On 14 May, the US Supreme Court ruled the country’s federal ban on sports betting to be unconstitutional and in doing so handed each state the authority to dictate their own sports betting laws. The decision has the potential to create a significant business opportunity for Kambi. In previous quarterly reports we discussed how Kambi had been preparing for such an outcome, and our proactive efforts in the US can already be seen in our recent business wins.
“Since the ruling, Kambi has signed two prominent operators in the US market. Firstly, in May we signed with Rush Street Gaming, an innovative gaming company with physical casinos in three US states, New York, Pennsylvania and Illinois, and an online presence in New Jersey. In addition, last month we secured a deal with DraftKings, the leading daily fantasy sports operator in the US and a company with a large database of sports fans.”
While enthused by developments stateside, Nylén called for a balanced approach from investors, saying: “I’m excited about what we can achieve with both customers, and in the US more generally. However, the state-by-state roll out of regulated sports betting will not happen overnight, therefore our US-facing business should be viewed in the mid-to-long-term.”
- Revenue amounted to €17.6m for the second quarter of 2018, an increase of 25% and €34m for first half of 2018, an increase of 20%
- Operating profit (EBIT) for the second quarter of 2018 was €2.4m,
with a margin of 14% and 4.4m, with a margin of 13% for the first half of 2018
- Profit after tax amounted to €1.7m for the second quarter of 2018 and €3.2m for the first half of 2018
- Earnings per share for the second quarter of 2018 were €0.055 and €0.107 for the first half of 2018