Kambi has published its 2021 financial report, declaring a 38% increase in revenue year-over-year despite “tough challenges” as the Americas overtook Europe as its largest revenue driver.
The sports betting partner saw its revenue reach an all-time high in 2021 of $180.2m (2020: $130.6m), whilst profit before taxation stood at $62.2m (2020: $34.4m).
The firm also saw a 77% increase in operating profit and a 35% operating margin drove the firm’s net cash position to $80.2m.
In the US, Kambi expanded across six more states in 2021, bringing the total number of states in which it has launched to 18 since the repeal of PASPA.
In December, the firm entered into a multi-year and multi-state partnership with Affinity Interactive, an omni-channel gaming firm. Throughout 2021, it powered the launch of over 50 US retail and online sportsbooks.
Kambi also continued its growth with tribal gaming operators, signing multi-channel agreements with the Tohono O’odham Nation’s Desert Diamond Casinos & Entertainment in Arizona, and with Saginaw Chippewa Gaming Enterprises in Michigan.
However, CEO Kristian Nylén acknowledged that the loss of revenue from its partnership with DraftKings was one of three “tough challenges” it encountered during the year.
DraftKings brought an end to its partnership with Kambi last September, deciding to move forward with its own proprietary platform instead.
When speaking on Kambi’s revenue, Nylén said: “It’s important to note that these fantastic numbers were delivered in the face of some tough challenges. If not for the loss of revenue from 888 and DraftKings, along with the temporary impact of the Netherlands’ licensing process on some of our partners, the year would have been greater still.
“In business, obstacles will always present themselves, but I believe we have built a company with the scale and diversification to overcome challenges, as illustrated this past year.”
Yet, despite the loss of DraftKings, Kambi saw the Americas ($89.9m) overtake Europe ($86.5m) as its largest market for revenue in 2021 thanks to the US market’s emergence and the success of its Central and South American operators.
The firm’s reliance on the European market has decreased substantially year-on-year to 41% (2020: 51%), with the Americas comprising 57% (2020: 47%) and the Rest of the World to 2% (2020: 2%) of the total GGR.
Its GGR in Europe continues to grow (2020: $82.8m), but at a slower rate than in the Americas ($45.5m). This is due to Europe being a more mature and regulated market, while the substantial increase in the Americas was largely attributed to the continuing growth in both existing and new US states.
Kambi now has a network of over 40 partners across six continents, and it also supported a total of 70 operator launches throughout the year.
Nylén continued: “Our expertise and regulatory compliant technology were crucial in Kambi being able to power more than 60 online and on-property launches during 2021, averaging a launch every five to six days. This included several market-firsts in the US where Kambi retains a strong position having now launched in a total of 18 states since the repeal of PASPA in 2018.
“The US market underpins our global growth strategy and continues to be of great promise for Kambi after hitting several milestones in 2021, not least receiving a mobile platform license in New York State which is the most populous state to regulate online sports wagering to date.”
As for the rest of the Americas, Kambi has already made moves in Canada, having recently received regulatory approval from the Alcohol and Gaming Commission of Ontario (AGCO) for its registration as a gaming-related supplier. It has also sealed a multi-year partnership with NorthStar Gaming.
In Latin America, the company further extended its presence across Argentina, partnering and going live online with Casino Magic in the country’s Neuquén province, as well as launching with BetWarrior in both Buenos Aires City and Buenos Aires Province.
The firm also partnered with NG Gaming to support the launch of its Olimpo.bet brand in Peru and additional markets. Moreover, it has its eye on Brazil, a market where significant regulatory movement is expected to occur soon.
Nylén concluded: “In summary, the business is in great shape and the global opportunities ahead are exciting. I’m proud of our achievements in 2021, driven by the hard work of our employees who care passionately about delivering for our partners.
“As ever, we remain committed to delivering the world’s leading sportsbook in a localized way, and with a great team and a fantastic product in place, I look forward to what the future holds for Kambi.”