Kambi Group plc ("Kambi"), the home of premium sports betting solutions, has signed a novation agreement providing for FDJ Group ("FDJ") to assign and Kambi to assume FDJ's contract with Ontario Lottery and Gaming Corporation ("OLG"), enabling Kambi to replace FDJ as OLG's long-term sports betting partner, with OLG's consent pending certain conditions.
FDJ, in line with its strategic refocus on international activities on B2C operations in the lottery, sports betting and online gaming market, has identified Kambi as its preferred assignee under FDJ's contract with OLG. The three parties have since agreed to a contract novation process which, subject to conditions, is expected to lead to Kambi assuming the contractual responsibilities currently held by FDJ, which are due to run until 2032.
To complete the assignment/assumption of the contract, Kambi must make a material initial investment which, as a non-recurring item affecting comparability, will not form part of Kambi's full-year 2025 operating expenditure guidance.
OLG is the Ontario government agency that conducts and manages gaming facilities and charitable gaming, the sale of province-wide lottery games, and online sports betting and gaming. OLG offers sports betting through its PROLINE brand online and at approximately 10,000 retailers, with 100% of proceeds reinvested into the province.
OLG was the sole legal provider of online sports betting and gaming in Ontario until regulation of the market in April 2022, which paved the way for approximately 50 operators to enter the province. Kambi believes the combination of OLG's local market position, the PROLINE brand, and Kambi's high quality sportsbook will enable OLG to further develop its market position.
The parties aim to have the novation agreement conditions satisfied as soon as possible, with Kambi's expectation that the multi-channel migration will be completed in H2 2025.
Werner Becher, Kambi Group Chief Executive Officer, said: "The prospect of partnering with an organisation of the size and stature of OLG is an exciting one for Kambi and we are working diligently to complete the novation process with FDJ and launch later this year. Ontario has a competitive online market, but I believe a combination of OLG and Kambi will see PROLINE rightly compete with market leaders while continuing to raise the bar of its retail product."
For further information, please contact:
Mattias Frithiof
SVP Investor Relations & Sustainability
Mattias.Frithiof@kambi.com
Mobile: +46 73-599 45 77
Chris Stutzman
Investor Relations Analyst
Chris.Stutzman@kambi.com
Office: +1 302 603 5137
About Kambi
Kambi Group is the home of premium sports betting services for licensed B2C gaming operators. Kambi's portfolio of market-leading products include Turnkey Sportsbook, Odds Feed+, Managed Trading, Bet Builder, Esports, Front End and Sportsbook Platform. Kambi Group also operates esports data and odds supplier Abios, front end technology experts Shape Games and cutting-edge AI trading division Tzeract. Kambi Group's partners include ATG, Bally's Corporation, Corredor Empresarial, Kindred Group, LeoVegas, LiveScore, Rush Street Interactive and Svenska Spel. Kambi Group employs more than 1,000 staff across offices in Malta (headquarters), Australia, Denmark, Philippines, Romania, Sweden, the UK and the United States.
Kambi utilises a best of breed security approach and is ISO 27001 and eCOGRA certified. Kambi Group plc is listed on Nasdaq First North Growth Market under the symbol "KAMBI".
The Company's Certified Advisor is Redeye AB.
