Kambi Group entered into an agreement for a sportsbook that covers multiple states with the Choctaw Nation of Oklahoma. This is one of the biggest Indian Nations of the US.
Kambi’s sports betting technologies and services will be provided to Choctaw Nation gaming entities under the agreement. The deal covers online as well as retail sports betting.
Choctaw Casinos & Resorts is operated by the Choctaw Nation. It owns a gaming and entertainment network in south-eastern Oklahoma. The flagship casino is located near the Texas border.
Oklahoma has not legalised sports gambling and placing bets in person or on the internet is still illegal. The state has more than 130 Native American casino and gaming facilities.
However, Kambi notes that, subject to regulatory approval, the agreement can be expanded into additional states. This includes both online and in-store retail.
“Landmark” sports betting deal for Kambi
Kristian Nylen, CEO of Kambi and co-founder, welcomes this agreement. Kristian Nylen describes the agreement as “a landmark” for Kambi, with exciting potential.
Nylen stated, “I am confident that we can create exciting sports betting experiences together with the Choctaw Nation, not only because it has fantastic gaming and entertainment venues in Oklahoma but also due to its track record of developing successful digital business.”
Choctaw Nation, with its impressive credentials was an obvious partner. It is therefore gratifying that it recognized our common values and benefited from Kambi’s technology.
Trust remains essential in each tribal partnership. “We look forward to providing a top-of-the-line sportsbook which generates sustainable revenue for the Choctaw Nation over time.”
Heidi Grant, the senior executive of commerce at the Choctaw Nation of Oklahoma also applauded the new partnership. Grant said that the partnership supports Choctaw Nation of Oklahoma’s growth goals in Oklahoma, and elsewhere.
Grant stated that they were “thrilled” to have signed a long-term contract with Kambi. Grant said, “We are thrilled to have entered into a long-term agreement with Kambi.”
Oklahoma has the potential to legalize gambling
Oklahoma has attempted to legalise betting on sports several times. The state has not yet made any decisions and regulations have yet to be implemented.
At the end of 2012, Governor Kevin Stitt presented proposals for legalising online and physical sports betting.
Stitt stated at the time that retail gambling would only be available to tribes federally recognized, as per a compact between states and tribal gaming. Stitt said that in-person betting revenue would be taxed 15%.
Oklahoma will award licenses to operators who offer mobile betting. The initial license fee would be $500,000 plus $100,000 per year for renewal.
The mobile licence holders would have the ability to accept bets on sports from any location within the state. The tax on their revenue would be increased to 20%.
These plans have not yet been realized, even though the current session of the legislature is nearing its end.
Kambi Mixed Q1
Kambi’s deal was announced after it published first-quarter financial results this week.
The revenue for the quarter ending 31 March fell 1.8% short of the EUR44.0m recorded in Q1 last year. Kambi claims that this is in line with the expectations of the period.
The net profit for Q1 2019 was EUR3.2m and only slightly lower than the previous quarter. EBITDA was also 10.2% higher, at EUR14.1m.
