Kambi Thrives Thanks To New U.S. Sports Betting Market

in Finance
  • Kambi earned about $29 million during the fourth financial quarter of 2019.
  • Entering the U.S. sports betting market has proven to be profitable for Kambi.
  • DraftKings is no longer depending on Kambi for technology solutions.

MALTA – Kambi released its 2019 Q4 revenue report on Wednesday, and it shows that entering the U.S. market has been profitable.

Kambi is assisting many new sports betting operations across the United States. Thanks to that, the company is ending 2019 with a profit.

Soaring Profits

Partnerships and sports betting have led to the growth of Kambi. According to their revenue report, the overall revenue that Kambi earned for Q4 of 2019 amounted to being $29 million. Taking all of 2019 into consideration, Kambi earned $100.1 million.

Profit after taxes are all said and done ended up being $5 million for Q4 and $11.3 million for all of 2019. Thanks to more states with sports betting, Kambi performed much better in 2019 than they did in 2018.

Moving Forward To 2020

Like any other company, Kambi is wanting to do better in 2020 than they did in 2019. There is a large number of states that are looking to legalize sports betting during the 2020 legislative session. More states legalizing means more opportunities to profit off of sports betting. But Kambi may have to forge some new business partners to profit in 2020.

“While the year was pleasing for many reasons, 2019 ended with news our partner DraftKings had entered into an agreement to acquire its own sports betting technology and therefore will no longer be dependent on Kambi. Our revenues from DraftKings are likely to be unaffected throughout 2020. I remain of the view that DraftKings’ long-term prospects would be better served with Kambi but also that this will increase the appeal of Kambi to an even greater level. We remain firmly committed to the US, where we have a diverse network of partners which have fantastic potential for growth, particularly as more states regulate,” said Kristian Nylén, CEO of Kambi.

However, Kambi is not the only U.S. based relationship they have. Last November, Kambi formed a new partnership with tribal casinos such as the Seneca Nation. Kambi is also partnering with Penn National Gaming who is in the process of buying out Barstool Sports.

Although they lost a big customer in DraftKings, Kambi will still have a large presence in the United States. As more states legalize sports betting, Kambi will likely form more partnerships in the upcoming year.

https://www.legalsportsbetting.com/news/kambi-thrives-thanks-to-new-u-s-sports-betting-market/