DraftKings Signs Sports Betting Deal with Kambi Group
Posted on: June 21, 2018, 01:00h.
Last updated on: June 21, 2018, 10:49h.
Daily fantasy sports giant DraftKings will shortly make the leap into legal and licensed sports betting in New Jersey with the help of the Kambi Group.
A Kambi Group presser released Wednesday revealed the deal came ahead of DraftKing’s “imminent sportsbook launch in the US state of New Jersey.”
Malta-based Kambi was formerly part of Swedish online gambling giant the Kindred Group and provides B2B sports betting services for several top-tier operators, including Kindred and 888.
The announcement revealed few details other than that Kambi would provide “technology and services selected to support expansion of DraftKings’ product portfolio” as part of a “sports betting deal.”
DraftKings has an agreement in place to offer sports betting in New Jersey in partnership with Resorts Atlantic City and can probably do with all the help it can get. In an official statement in the wake of PASPA’s repeal, the company said it had been preparing since last year to launch a sports betting platform for mobile in anticipation of a positive decision from the Supreme Court. Yet despite this, the DFS market leader has never before processed a single sports bet.
FanDuel Merges With Betfair US
Meanwhile, rival FanDuel has agreed to merge with Paddy Power Betfair’s US operations and is preparing to launch a sports book at the Meadowlands Racetrack within the next couple of weeks.
Betfair US CEO Kip Levin told Legal Sports Report recently that FanDuel was likely to be the primary brand for the company’s sports betting operations.
DraftKings and FanDuel offer brand recognition to these European sports betting companies who are eager to gain a foothold in the fledgling US market. In return, the DFS companies receive the benefit of decades of experience honing products in the world’s most competitive market.
But they also receive readymade customer databases of engaged sports fans who have a proven willingness to invest money on the outcomes of games.
On Wednesday, the Fantasy Sports Trade Association (FSTA) released data from its new study “Understanding Crossover Between Fantasy Sports Players and Sports Bettors” at its summer conference in Minneapolis.
Researchers polled almost 1,500 US residents who had either played DFS or bet on sports within the last year. Almost half of all those who had played DFS said they had bet on sports, and vice versa.
For Kambi the deal represents an inroad into the US market, which it hopes to expand as more states pass laws to legalize sports betting.
“The deal also includes terms for the partnership to expand when commercially agreeable regulatory frameworks are implemented in the US,” it said.
“The uncertain U.S. regulatory timetable makes the deal’s impact on Kambi’s 2018 revenues difficult to predict, although Kambi believes the partnership could provide a significant source of income in the longer-term,” it added.