Kambi and PENN Entertainment have reached an agreement related to the migration of the latter’s online and retail sportsbook entities to proprietary technology over the course of the next two years.
This will see the rebranded Penn National Gaming interactive segment commence with an online migration during the third quarter of 2023, with its land-based entities to follow suit the following year.
This deal includes ongoing revenue share payments related to online and retail sports betting services for the duration of the provision of each respective service.
Kambi will also receive one-time fees of $12.5m for early termination and $15m for transition services, the latter, it is noted, is payable in instalments through the transition period.
Jay Snowden, PENN Entertainment CEO, said: “Kambi has been a topflight supplier to PENN in our digital evolution. Kambi’s well-proven, high-quality technology and services have empowered PENN as we pursued our differentiated sports betting strategy, and I’m pleased to have secured our partnership to ensure a seamless transition for both companies.”
Having first aligned in July 2019, the pair have subsequently partnered for launches in 15 US states, covering 13 online launches and 25 retail properties. The parties have also agreed to cooperate on additional US state launches for the Barstool Sportsbook during the period.
Kristian Nylen, Kambi CEO and Co-founder added: “This agreement sets out the continued collaboration between the two parties over the coming years, one which secures certain ongoing revenue for Kambi over the transition period.
“Furthermore, the terms also provide Kambi with additional protections with regard to our data and intellectual property.”