Daily fantasy sports and sports betting operator DraftKings and sports betting technology provider Kambi Group Plc have extended their existing contract which was first announced in June 2018. The initial agreement involved the provision of sports betting operations in New Jersey. Shortly after the debut of their operations in the state, DraftKings went ahead and made history when it became the very first gambling operator to launch a mobile betting app in the Garden State.
With the new and extended contract, the two companies will be venturing into additional states where sports betting has been legalized and is regulated. This also applies to states that are currently considering legalizing the activities. Some of these states include Indiana, Colorado, Iowa, Maine, New York, Tennessee, and Pennsylvania.
“Over the course of the past 12 months, Kambi and DraftKings have developed a symbiotic relationship, working closely together to deliver a high-quality sportsbook, which has only improved over time. I’m delighted the extension of our relationship through this new agreement will enable players in other states to enjoy the same exciting sports betting experiences that have helped DraftKings become a market leader in New Jersey,” Kambi CEO Kristian Nylén said.
As per the terms of the current deal, Kambi’s current revenue in New Jersey is secured for quite a bit of time. Meanwhile, the company will also have the opportunity to generate incremental revenues when the partnership begins to enter into additional jurisdictions.
DraftKings’ Prediction for Online Sports Betting
For quite some time now, DraftKings has been working hard to ensure that it is no longer compared to FanDuel sportsbook, its biggest competitor. As it stands, DraftKings is currently active in three states but with the extension of its contract with Kambi, it hopes to make their mark in the United States’ sports betting market.
DraftKings has already struck deals in with some states where sports betting has been legalized and a few others that are considering legalizing sports betting. It has recently agreed to a strategic partnership spanning the course of ten years with Penn National – there is the possibility of extending the partnership for an additional ten years.
According to DraftKings’ CEO, Jason Robins, the plan is to enter as many sports betting markets in the United States as possible by the end of the upcoming NFL season. Kambi will be a huge part of this since the partner company has been a key partner thanks to the backend sportsbook technology.