Kambi strikes deal to power Bally’s US sports betting platform
Bally’s Corporation has entered into multi-year agreements with Kambi and White Hat Gaming to provide online sports betting and platform solutions for its Bally Bet brand.Kambi’s fully managed sportsbook will replace Bally’s proprietary sports betting technology, while White Hat Gaming will provide its player account management platform (PAM) solution to the operator.
Bally’s CEO Robeson Reeves acknowledged on the operator’s Q4 earnings call that the Bet.Works platform it acquired was not up to standard to develop a competitive product in US online sports betting.
He revealed that Bally’s was looking to partner with a third-party supplier for sports betting and was considering leasing options to reduce costs.
Bally’s now intends to re-launch the Bally Bet platform in seven states and four retail gaming locations by the end of 2023.
Kambi said the partnership with Bally’s has the potential to “become a material source of revenue” for the company over the course of the contract.
The supplier reported declines in operating profit and EBITDA for Q1 2023, which raised questions among investors about the company’s long-term profitability.
Commenting on the deal, Kambi CEO Kristian Nylén said: “We are pleased to enter into this long-term partnership with Bally’s to enable the enhancement and expansion of its online and retail sports betting platform and services.
“Kambi is the proven global leader in sportsbook provision and I believe this powerful collaboration with Bally’s will deliver its customers the next generation betting entertainment they demand,” he added.Under the terms of the partnership with Kambi, Bally’s will integrate Kambi’s suite of omni-channel products, trading capabilities and content solutions.
Bally’s has also maintained the option to acquire a licence to a limited part of Kambi’s online and retail technology source code, pending the satisfaction of certain material performance metrics.
Should Bally’s exercise the option and pay an agreed sum, the two parties would enter into a separate long-term outsourcing agreement in relation to Kambi’s range of modularised services.
Bally’s said Kambi’s solution will offer it significant cost savings by shifting from a fixed cost structure to a variable cost structure.
“We are very excited to have entered into long-term agreements with both Kambi and White Hat – two of the world’s most established and trusted gaming technology companies,” said Bally’s CEO Reeves.
“Bally’s will be optimally positioned to achieve significant scale and capture substantial market share in the global gaming market,” he added.
White Hat Gaming will supply Bally’s with a PAM platform solution that includes cashier, managed services, and a traveling wallet. It will also include sports betting and casino content through direct supplier and aggregator integrations.
The partnerships with Kambi and White Hat Gaming represent the latest step in Bally’s long-term growth and development strategy.
The company recently restructured its North America Interactive business segment, including cutting 15% of its US online workforce, as part of its effort to form a more competitive and cost-efficient go-to-market strategy.