Business By The Books: Kambi, PENN Extend In-Person Sports Betting Deal

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Kambi signed an extension to run the in-person sports betting operations for Penn Entertainment through the end of 2025.

The deal between the two was set to expire in July. Kambi operated all sports betting for Penn, both online and in-person, until last summer when Penn launched its on proprietary sportsbook platform.

The Kambi platform still powers more than 30 Penn properties in 13 states.

“We are pleased to agree to this extension to our retail sportsbook agreement with PENN Entertainment through which we have secured an important additional revenue stream for Kambi until the end of 2025,” Kambi CEO Kristian Nylén said. 

Sports betting leaders slide in Super Bowl downloads

Download share for the DraftKings and FanDuel apps during Super Bowl week slipped to 52% from 75% last year, according to Sensor Tower data cited by Eilers & Krejcik.

BetMGM saw increased downloads, likely helped by the ad campaign including Tom Brady and the deal with Twitter/X that integrates BetMGM odds into the platform.

Hard Rock Bet saw a spike in downloads, likely because of its exclusivity in Florida. Both ESPN Bet and Fanatics saw improved downloads over their respective legacy brands, Barstool and PointsBet.

Caesars, meanwhile, saw its share dip from 4% to 3% last year as the company continues to be cautious with marketing investments.

Year-end sports betting earnings calls continue

There are three year-end earnings calls from sports betting companies coming up this week.

Caesars kicks the week off at 5 pm Eastern Tuesday. The company pre-reported results in January, saying digital adjusted EBITDA should be between $28 million and $30 million for the fourth quarter.

Kambi is next at 3:45 am Wednesday and will be followed by one of its newest sports betting customers, Bally’s, later that day at 5 pm.

GAN shareholders approve Sega Sammy deal

More than 95% of GAN shareholders approved the acquisition by Sega Sammy, which should close by the end of this year or early 2025.

Sega Sammy is paying $88 million to take GAN private and focus on the growing US iGaming industry. The purchase is part of planned investment of $700 million into Sega Sammy’s gaming segment.

“As more states legalize online gaming, we expect existing operators to expand and new operators to enter the online gaming market,” Sega Sammy said when it announced the deal in November. “The Company believes that GAN’s turnkey technology solution is highly competitive in enabling these operators to quickly enter the online gaming market.”

GAN also announced interim CEO Seamus McGill will drop the interim tag. He will be focused on “guiding the company towards a timely closing with Sega Sammy.”