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Kambi Group Wagers Heavily on US Sports Betting

European sports betting powerhouse Kambi Group opened its US headquarters in Philadelphia last month, situating itself close by to operating partners in Pennsylvania and New Jersey.

Since PASPA was repealed by the US Supreme Court, Kambi has moved quickly to partner with some of the biggest names in legal sports betting, including Rush Street Gaming, DraftKings Sportsbook and Greenwood Gaming and Entertainment.

Kambi is currently partnered with five retail sportsbooks in Pennsylvania and New Jersey, including SugarHouse, Parx and Rivers casinos in Pennsylvania.

Online, Kambi is partnered with New Jersey’s top-producing DraftKings Sportsbook mobile app, as well as PlaySugarHouse.com.

Mobile sports wagering partners in Pennsylvania include Rush Street Interactive’s BetRivers and PlaySugarHouse.com, along with Greenwood Gaming’s Parx Online Sportsbook.

Kambi’s retail and online sportsbooks are often the first to launch in states where sports betting has recently been legalized, a big plus for operators looking to quickly capitalize on new legislation.

Last year, New Jersey’s DraftKings and Kambi took the first legal online sports wager ever placed outside of Nevada.

In Pennsylvania, Rush Street Gaming, along with its online sports gambling and gaming affiliate, Rush Street Interactive, were quick to align with Kambi.

Rivers Casino Pittsburgh and SugarHouse Casino in Philadelphia (slated to be rebranded as Rivers Casino Philadelphia later this fall) went live with the state’s first two online sports betting apps in June.

Until FanDuel, in partnership with Valley Forge Casino, went live with its mobile sports wagering operation last week, Kambi had a hand in all online legal sports wagering apps in the Keystone State.

And the immediate future looks much the same.

Penn National Gaming recently announced that DraftKings Sportsbook will soon go live with its online sports betting app in Pennsylvania, with Kambi as its national service provider.

Who is Kambi?

Kambi was formed five years ago as a spinoff of Unibet, now the Kindred Group. Headquartered in Malta, the company has satellite offices in Bucharest, London, Manila, Stockholm, Sydney and, now, Philadelphia.

Traded on the Nasdaq Stockholm stock exchange, Kambi offers broad services ranging from front-end user interfaces to compiling odds to risk management, all on in-house-developed software platforms.

Kambi’s bookmaker technology platform calculates odds, assesses risk and manages the back end of sportsbooks. Its partnering casino operator takes the risk and sets wagering limits.

Kambi’s income from the partnership is based on the operator’s profit.

The company often states that its goal is to provide business-to-business service and expertise to its partners from a background position. Kambi is not interested in being a top name in sportsbooks.

Kambi believes strongly that in-game wagering is the wave of the future, and focuses on developing technology that caters to that trend. Current statistics seem to support Kambi’s philosophy.

In New Jersey, more than 50% of all legal online sports wagers are placed during sporting events, rather than traditional waging that relies on the winner or loser of an event.

Kambi’s growth is in the books

Kambi Group reported close to $24 million in revenue in the second quarter of 2019, the three months ending June 30, representing a 23 per cent increase over the previous quarter.

However, Kambi’s profit-margin dropped due to the rapid rate of its US legal sports betting market expansion.

Kambi’s US partners are showing excellent profit margins, which bodes well for Kambi’s future as legal sports gambling continues to expand across the country.

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