Following weeks of speculation, we finally have some clarity on the long terms plans of DraftKings and their sportsbook development of NJ sports betting online. Kambi has indicated having clinched a multi-year contract with DraftKings and has alluded to an imminent sportsbook launch in New Jersey.
Following a massive advertising campaign commencing in May, nobody has known with whom exactly DraftKings Casino intended partnering for their market expansion move in NJ. They recently announced a partnership with Resorts Atlantic City and now Kambi sportsbook has confirmed providing “technology and services selected to support the expansion of DraftKings product portfolio”. The exact period of the contract is currently unknown.
Sports Betting online became a reality in the state just last month, and following a regulatory 30 day phasing-in period after the land-based casinos go live, online wagering will go live in mid-July.
Alluding to its marketing competitive edge, Kambi CEO, Kristian Nylen said: “Kambi technology is unique in that it empowers operators to innovate and create differentiated sports betting experiences, providing flexibility, which will be crucial in the developing US market”.
The deal with DraftKings will apply to all other states where they intend entering the sports betting market additionally – not only in New Jersey. The announcement saw Kambi stocks rocket by 15% following this announcement.
Formerly part of the Kindred Group (Unibet), Kambi is a business-to-business sports betting interface for consumer companies. It’s interesting to note that Kindred had its eye on DraftKings as an acquisition, but it seems they would prefer to continue on independently.
Kambi provides sports betting for 888 – a European company with a stake in the NJ market; and has recently acquired Rush Street Interactive as a client.
The development and growth potential of the partnership between DraftKings and Kambi makes for interesting speculation: Pennsylvania is the first realistic possibility outside of New Jersey with sports betting launching there in the last quarter of 2018 or early in 2019.
Meanwhile, we’re told that Mississippi sports betting online isn’t on the cards for the launch in that state; while DraftKings is unlikely to expand into West Virginia sports betting. Much is the same is true for Nevada and Delaware where sports betting is already live and it seems there isn’t currently much appetite in the market for other platforms.