It is no secret that the global legal sports betting industry is in the midst of an impressive boom, especially since the US has joined the family. Stockholm-listed Kambi Group is one company that has taken full advantage of the legal sports betting goldrush and this week reported out their profits during the first quarter of 2021.
Kambi Group has been one of the more prominent technology providers for sportsbooks around the world. The company provides technology and services required by legal sports betting operators so they can deliver scalable and high-performance sportsbook solutions during this time of increased competition within the space.
Kambi has pointed to their proprietary technology and their ability to successfully infiltrate the US market for their recent spike in revenues. Currently, Kambi Group has contracts with Rush Street Interactive, BetRivers, Penn National’s Barstool Sportsbook, Parx Casino and one of the two US DFS behemoths among others for their gaming technology products in the US market.
Diving Into the Figures
Kambi Group is reporting success for Q1 of 2021. In a press release the company touted a 55% year-over-year increase in their revenue for Q1, from $33.7 million in 2020. $52.1 million in revenues was revealed by the company for the first three-month period of this year.
Operating profits (EBIT) came in at $22.6 million for Q1 as opposed to the $8.2 million in 2020, a 173% spike. Net profits after taxes were $18.2 million for the period, marking a huge spike from the COVID-affected $5.8 million in profits reported last year at this time.
Reasons for the Increase
Global expansion of the legal sports betting industry is obviously a huge reason for Kambi’s better-than-expected profits in Q1. Year-over-year increases are not surprising considering the state of the global betting scene last year when the coronavirus pandemic was taking its grip on the industry and society on the whole.
Simply put, when the sports betting calendar is full, Kambi thrives.
“This strong performance was driven by a busy sporting calendar, including the end of the NFL season and the March Madness college basketball tournament,” said CEO Kristian Nylén.
Their increasing presence in the US sports betting scene was also a huge driver of Kambi’s Q1 profits. Currently, Kambi technology is being used in 14 US jurisdictions including Heavyweight states New Jersey, Pennsylvania and Michigan where it boasts five skins.
There is nothing but optimism for Kambi as we head into the summer and seemingly past the worst of the coronavirus pandemic. Expansion into new markets and the strengthening of present markets are goals for the company in the immediate future, especially in the US.
“Regulation in the US continues to move at pace, with progress seen in a variety of states in recent weeks and months, perhaps most notably in New York, where the state has committed to adding online sports betting to its existing retail market. As the first company to process a regulated sports bet in New York, we’re of course monitoring the developing situation there closely and look forward to the publication of further details concerning the licensing framework in due course,” said Kristian Nylén.
The Sporting Menus
The sporting menus in the immediate future look as full as any time in the last few years, minus the juggernaut NFL. In the US, MLB, the NBA and NHL continue to draw interest and internationally, the impending Euro 2020 and Olympic Games will certainly provide some intrigue. It is expected that Kambi and the sportsbooks that employ their technology will benefit directly.
“… our teams are busy preparing for what will be a special summer of sports, with major events such as the delayed Euro 2020, Copa America and Olympic Games, as well as the return of annual summer tournaments including Wimbledon and The Open. In addition, this year should see a full MLB season played out, with a high volume of games to be played throughout the summer months. As always, our partners will have a first class offering across all sports and competitions, and as sports fans we have a lot to look forward to.
Technology providers are the cornerstone of an industry that is exploding across the globe at the moment, particularly in an ever-growing US market that isn’t yet legal for 50% of their population. Kambi figures to be a part of the legal sports betting growth of not only the US market but around the world going forward.