LeoVegas has solidified its partnership with Kambi by extending their turnkey sportsbook deal until the end of 2027. This extension coincides with LeoVegas's continued transition to its own in-house sportsbook platform.
The fresh agreement comes after the deal was last renewed in 2023 and introduces Kambi’s Odds Feed+ solution, which will be available post-2027. With LeoVegas acquiring Tipico’s US betting platform last June, there were expectations that Kambi might lose the operator as a client.
The announcement raises questions about the status of LeoVegas's in-house platform, which MGM CEO Bill Hornbuckle indicated would launch in LeoVegas's core markets earlier this year. He mentioned that the full integration of the sportsbook’s assets is anticipated to be finalized by the end of the first half of this year.
At the time LeoVegas acquired the platform, MGM stated that it aimed to create a proprietary sportsbook tailored to its various international markets and brands, excluding North America, where BetMGM operates as a joint venture with Entain, which supports the product in the US and Canada.
Kambi clarified that the renewed deal will span an additional two years, during which LeoVegas will persist in its migration to its proprietary sportsbook platform. LeoVegas confirmed that the integration with Tipico remains on course.
A LeoVegas spokesperson emphasized, “The extension with Kambi is a natural part of our strategy to ensure business continuity while the integration of our proprietary Tier 1 sports betting product remains on schedule.”
Under this new agreement, Kambi’s complete library of traded odds will be available for LeoVegas's brands, including BetMGM and BetUK. Kambi CEO Werner Becher expressed enthusiasm for the partnership's continuation, which began in 2016, stating, “While we look forward to another two years of turnkey provision, it speaks to the quality of our trading capabilities that LeoVegas also secured access to our Odds Feed+ solution, taking our partnership into a new phase.”
The renewal is a positive development for Kambi, which has recently lost significant clients like Penn Entertainment as many operators switch to in-house platforms. Kambi reported decreasing revenue and net profit in Q1 compared to the previous year, with CEO Becher acknowledging that results were “far from the future level [we] aspired to.” The company aims to diversify its offerings and client base to foster growth.
An analyst note from Norwegian investment bank ABG Sundal Collier, dated June 2024, indicated that Kambi likely won't feel the consequences of losing the LeoVegas deal until after 2026 due to anticipated consensus revisions. The note suggested that LeoVegas contributed approximately 3% to Kambi’s revenue in 2023 but was expected to grow as MGM expanded internationally, particularly with BetMGM UK. Nonetheless, future earnings could potentially suffer.
The analysis also noted the possibility of MGM becoming a modular client, suggesting that products like BetBuilder might be appealing to a company developing its in-house sportsbook, especially as many large operators have outsourced such products.
In a recent interview, Kambi's SVP of Commercial Operations, Jamie Mckittrick, stated that the company is adapting to a shift toward more flexible relationships between suppliers and operators. He highlighted that while Kambi's turnkey sportsbook remains a core offering, the company is expanding its portfolio of sports betting products to cater to a variety of operators, regardless of their size, location, or strategy. The development of products like Kambi’s Odds Feed+ exemplifies this adaptability, offering premium services with unmatched quality and flexibility to operators.
