Kambi shares spiked Tuesday after the sports betting technology provider announced its first-ever source code licensing agreement.
The agreement gives Allwyn, the global gaming company that acquired a majority stake in PrizePicks earlier this year, a perpetual license to Kambi’s sportsbook technology as it consolidates its sports betting operations onto a single platform.
Kambi expects it to contribute €45 million ($50.2 million) to €50 million ($55.8 million) to operating profit between 2027 and 2031, with roughly 40% recognized next year through an upfront payment and another 20% in 2028 through subsequent milestone payments.
Shares of Kambi closed 17.4% higher at 168.80 Swedish kronor on Stockholm’s exchange on nearly seven times their average daily volume.
Kambi monetizes sportsbook technology
The deal marks a departure from Kambi’s traditional business of providing sportsbook technology and services to betting operators, as it monetizes its underlying source code for the first time.
“This agreement shows the quality and strategic value of the sportsbook technology Kambi has built over more than 15 years,” CEO Werner Becher said in a press release.
Kambi will also supply AI-powered trading and risk management services to Allwyn. It plans to build and train a team that will eventually transfer to Allwyn, giving the operator control over further platform development.
Implementation will increase Kambi’s operating expenses from 2027 to 2029, though the company expects to return most of the net proceeds to shareholders.
Allwyn brings sportsbook technology in-house
Allwyn, which operates national lotteries across Europe, generated more than €800 million ($892.9 million) in sports betting revenue in 2025. It expects to pay €50 million ($55.8 million) for the agreements through 2029, with roughly half incurred in 2027.
The company said bringing its sportsbook platform in-house will allow it to develop products tailored to individual markets and reduce costs by operating multiple brands on a common platform.
The move follows Allwyn’s $1.53 billion acquisition of a 62.3% stake in PrizePicks in January, expanding its U.S. presence through the daily fantasy sports operator, which has also expanded into prediction markets.
