At the end of September 2021 DraftKings and Kambi end their partnership as DraftKings transitions to a platform driven at SBTech.
The two firms announced Thursday that they would “mutually endorse and collaborate” on DraftKings’ proposed move to the SBTech sports betting and iGaming network by the end of the third quarter of next year.
In a news release, Paul Liberman, DraftKings’ president of global technology and product said: “Kambi has been a collaborative partner and was instrumental in DraftKings being first to market in New Jersey with our sportsbook. We appreciate the efforts they have made, and will continue to make, in helping to ensure a smooth migration for us as we move on to our own platform.”
DraftKings and Kambi have decided that DraftKings would take measures to protect intellectual property in Kambi during the transition, “ensuring a secure and efficient transition for both parties,” the release said.
On April 23, DraftKings completed its $3.3 billion merger with SBTech and Diamond Eagle Acquisition Corp., and began trading on the Nasdaq Global Select Market the next day under the ticker symbol “DKNG.”
With the merger it was apparent that Kambi ‘s technology would no longer be needed by DraftKings. SB Tech and Kambi are suppliers of Business-to – Business back-end sportsbook technology. Kambi has provided sports betting services for a variety of companies, including 888 Holdings, Penn National Gaming and Rush Street Interactive.
When the DraftKings deal was first revealed in December 2019, the shares of Kambi, traded on NASDAQ Stockholm, dropped by 53 points or about 30 percent. This quickly rebounded.
Just after the Supreme Court’s decision to abolish PASPA, the federal sports betting ban of 1992, DraftKings and Kambi reached an agreement. The agreement, revealed in June 2018, allowed DraftKings to take advantage of Kambi technology ahead of its launch in New Jersey.
The deal included extending the relationship when revealed, as more states legalised sports betting.
Kambi CEO Kristian Nylens said when the two agreed to a partnership, “I am delighted Kambi has been selected to partner DraftKings as it enters the sports betting market. The Kambi technology is unique in that it empowers operators to innovate and create differentiated sports betting experiences, providing the flexibility which will be crucial in the developing U.S. market.”