Strategic Mobile Sportsbook Partnership Between Kambi and Mohegan Confirmed
B2B sports betting services provider Kambi Group PLC has signed a significant mobile sportsbook partnership deal with Mohegan Gaming & Entertainment. The multi-year agreement will see Kambi deliver mobile betting solutions to Mohegan’s Fallsview casino in Ontario, Canada.
Such a development can only mean one thing: Kambi will inevitably strengthen its position within the North American online gambling market, particularly casinos offering exclusive bonuses to Canadians.
Agreement to Strengthen Kambi’s Market Presence
Currently operating in 17 American states, the agreement will strengthen Kambi’s presence in the North American region. The deal will provide Kambi a precious opportunity to lend its services to Mohegan’s Ontario establishment, which is the largest casino resort in the Canadian city and a recognizable and reputed gaming brand in the Maple country. Kambi had already begun making inroads into Ontario’s newly regulated online gambling market on April 4, 2022, and is one of the 23 operators and 21 gaming sites that have gone live in the province.
Mohegan Digital president Rich Roberts said that the association between Kambi and Mohegan would be the latter’s first time offering a product to a market outside the United States (US). In his optimistic statement regarding the deal, Roberts shared his enthusiasm about the slew of future opportunities which are in store for Mohegan.
The president said that due to the flourishing sports betting segment, the present period is highly exciting for the mobile gaming industry. Roberts said that Mohegan was elated to have Kambi on board as a partner, and recognized the service provider’s contribution in launching the mobile sportsbook at the PlayFallsview venue.
Kambi CEO and co-founder, Kristian Nylén emphasized that the deal is a lucrative prospect for the company as it can milk the full potential of the Canadian iGaming market, especially Ontario, as it is the largest Canadian province. According to Nylén, Kambi was eager to offer Ontarians its best solutions, which would account for a unique gaming experience. The executive was hopeful about the success of the Kambi-Mohegan partnership and wished for the association to capture a significant stake in the Canadian market.
Kambi Encountered A Bump in Q1 of 2022
The deal with Mohegan is a fresh breath of air for Kambi, as the group had encountered headwinds while closing a tough trading period. The group had released its report for the first quartile of 2022 in the latter days of April, which saw a steep decline in its revenue.
Compared to the first quartile of 2021, Kambi’s revenue had fallen by 15% with its revenue being $39.3 million, accompanied by a profit tax of $5.7 million and an operating profit of $7.7 million. The group’s earnings before interest, tax, depreciation and amortization (EBITDA) totaled $14.6 million.
Kambi’s per-share earnings had fallen by a whopping 63%. The dismal results were attributed to its ex-partner, DraftKings, which migrated onto its proprietary tech stack. Despite a tough start, the group’s business was going strong, indicated by an operator turnover of 25%, which offset some of the unfavorable results induced by the DraftKings migration.
CEO Nylén Poised After Conquering Q1 Hurdles
Kambi CEO Nylén deemed the first quarter of 2022 as an extremely busy time for the company as it was occupied with new deals and renewing agreements with its existing partners along with introducing new technological solutions. The executive was unfazed by the negative trends and expressed his belief in the company’s strong profile.
Nylén also reflected on the company’s tryst with the regulated Dutch market. After the introduction of the new regulatory regime in the Netherlands, Kambi faced a 30% drop in its revenue.
Despite the fall, Nylén was still hopeful about Kambi’s future and gave an appreciative nod to its diverse portfolio of 40 partners, including NorthStar Gaming, Kindred Group, and MaximBet.