Kambi and PENN Entertainment have agreed to extend their retail sportsbook agreement until the end of 2025.
The deal, which was set to expire in July, will see Kambi continue to supply its range of retail sportsbook products including kiosks, point-of-sale terminals and odds boards to PENN.
In 2022 PENN entertainment announced its plan to migrate its retail sportsbooks to proprietary technology and agreed a revenue share during this transition period with Kambi.
According to Kambi, the extended agreement is part of a new deal which means that any sports betting revenue generated by PENN, either via Kambi’s platform or via PENN’s proprietary sportsbook in jurisdictions previously supported by Kambi, will be subject to revenue share payments.
On the extension, Kristian Nylén, Kambi CEO and Co-founder, said: “We are pleased to agree to this extension to our retail sportsbook agreement with PENN Entertainment through which we have secured an important additional revenue stream for Kambi until the end of 2025. As the industry’s leading sportsbook provider, both online and in retail, we are committed to providing our partners with cutting-edge technology and a premium service which PENN’s vast retail estate will continue to benefit from throughout the duration of the extended contract.”
Kambi currently supports PENN in 13 states across 30 properties.
ESPN Bet causes revenue decline for PENN
This news comes hot on the heels of PENN announcing revenue of $1.3bn and a net loss of $358.8m during the fourth quarter of 2023. These numbers are down from $1.5bn revenue and a net income of $20.8m during the same period in 2022.
PENN expanded its digital business during the quarter as they launched ESPN Bet, formerly Barstool Sportsbook, and in Q$ 2023 its interactive segment posted revenue of $31.5m and an EBITDA loss of $333.8m. In Q4 2022, which included Barstool Sportsbook, the interactive segment generated $208m in revenue and an adjusted EBITDA of $5.2m.
