Kambi targets foothold in five US states
Kambi confirmed today (Wednesday) that it is currently working on securing licences in five US states, with chief executive Kristian Nylén acknowledging that the market represents an “attractive” long-term opportunity for the sports betting services provider.
Nylén was speaking on a conference call to reflect on a solid second quarter, in which revenue increased year-on-year by 25% to €17.6m (£15.7m/$20.6m) to support a rise in first-half profit after tax from €1.2m to €3.2m.
Two of Kambi’s three new customers in the second quarter – Rush Street Interactive and DraftKings – are based in the US, with the company having reacted quickly since the Supreme Court overturned the 1992 Professional and Amateur Sports Protection Act (PASPA) in May.
Nylén said that Kambi had applied for licences in New Jersey and Mississippi and is working towards applying for licences in New York, Pennsylvania and West Virginia.
“The US is obviously a very interesting market for us at the moment,” said Nylén, who added that Kambi will embark on a US investor roadshow next week in a bid to support the company’s growth in the market.
Nylén also said that Kambi expects 12 states to be live with sports betting by the end of 2019, although the picture beyond that is less clear, with between 25 and 37 states expected to regulate sports wagering by 2023.
“Whereas some states have moved towards sports betting quickly, others will take a more considerate approach. Kambi’s US business therefore should be viewed in the mid to long term,” Nylén said.
“In previous quarterly reports we discussed how Kambi had been preparing for such an outcome, and our proactive efforts in the US can already be seen in our recent business wins.”
In May, Kambi appointed former Svenska Spel executive Mattias Eriksson as the company’s chief product officer, with the task of readying its sportsbook for the US market.
Nylén also said today that, outside the company’s established markets, “Colombia is growing very quickly”.
He added: “We strongly believe that there is very good potential for us to become the leader in that market eventually, but we’re not there yet.”