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Kambi Group plc Q1 Report 2022

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Financial summary

  • Revenue amounted to €36.9 (Q1 2021: 43.2) million for the first quarter of 2022, a decrease of 15%
  • Operating profit (EBIT) for the first quarter of 2022 was €7.3 (18.7) million, at a margin of 19.9% (43.2%)
  • Profit after tax amounted to €5.4 (15.1) million for the first quarter of 2022
  • Earnings per share for the first quarter of 2022 were €0.178 (0.487)
  • Cash flow from operating and investing activities (excluding working capital movements and acquisitions) amounted to €5.5 (16.5) million for the first quarter of 2022
  • The 2022 AGM will be held on 17 May 2022. The Board proposes that no dividend is paid out.

Key highlights

  • Strong financial performance against tough 2021 comparatives and Netherlands headwinds, with operator turnover up 25% when adjusting for the migration of DraftKings
  • Extended long-term partnership with Kindred Group until 2026 and announced full control over strategic future with ability to repay convertible bond held by Kindred
  • Strengthened North American partner network with the signings of online operators NorthStar Gaming and MaximBet
  • Showcased product excellence during the Super Bowl and March Madness while also providing complete platform stability unmatched by various high-profile US sportsbooks
  • Obtained regulatory approval in Ontario, Canada, and subsequently launched with partners on day one of the market opening in Q2

“The first quarter of the year proved to be another busy period at Kambi as we delivered new partner signings, contract extensions, continued market expansion and multiple product and technology advancements. 

Operator turnover was up 25% when adjusting for the migration of DraftKings which proves the underlying financial performance of the business remains strong. This growth comes despite being up against tough Q1 2021 comparatives and the temporary impact of regulatory headwinds in the Netherlands, which we expect to ease soon. Turnover was driven by a busy US sporting calendar, including the Super Bowl and March Madness, the US college basketball championship, and I was proud to see Kambi provide its partners with a market-leading offering and platform stability unmatched by some of the most high-profile B2C sportsbooks.

In terms of contract extensions, in February we signed a new agreement with Kindred to continue our very successful partnership which will develop over time to best support the evolving strategies of both companies over the longer term. This agreement is very much reflective of what we see in the wider industry, with some top-tier operators adopting a hybrid approach to technology by blending first-class third-party services with proprietary elements. The industry is now broadly divided into two operator types – those that outsource their sportsbook entirely and those that outsource to varying degrees. As we continue to develop a more open and modularised sportsbook, we believe we’ll become even more attractive to the former group, while also significantly widening our addressable market by making select products and services available to the latter for the first time.

I am particularly pleased with the momentum Kambi continues to build across North America. During the quarter, Kambi completed a total of 11 partner launches in the US and signed two new partnerships with North America-facing operators NorthStar Gaming and MaximBet, the latter moving away from its predominantly in-house technology strategy. With regulation across North America moving at pace, and states such as California, Texas, and Ohio yet to go live, I have never been more confident in our position to capitalise on the opportunities this vast market presents. 

In Canada, our excellence in compliance and regulation enabled us to become one of the first sportsbook providers to obtain regulatory approval from the Ontario regulator, ensuring our partners were up and running on day one of single-event sports betting going live in the province earlier this month. Ontario promises to be one of the largest sports betting markets in North America and we look forward to the prospect of additional Canadian partner signings as well as other provinces establishing their regulatory frameworks.

We remain steadfast in our commitment to strengthening our position as the world’s leading sportsbook and continuing to provide exciting sports betting experiences for players. To deliver this requires a strong core platform with the crucial flexibility to facilitate localised offerings to satisfy the varying regional demands. This capability, which we demonstrate across the 40-plus regulated markets we operate in today, will be pivotal to our global success as the expansion of sports betting regulation continues the world over, in turn creating ever more exciting business opportunities. 

In short, the future looks bright for Kambi with high interest in the sportsbook and services we offer today, as well as those we are developing for tomorrow. As discussed in the previous report, the ability to repay the convertible bond held by Kindred provides us with complete freedom to make strategic decisions that will deliver value for all stakeholders. With Kambi reaching the milestone of 40 partners during the quarter, the scale of the Kambi network has never been greater nor more diverse, and I believe we have only scratched the surface of what’s possible.”

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IBJR hails App Store approval as a milestone in the fight against illegal betting in Brazil

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The Brazilian Institute for Responsible Gaming (IBJR) considers Apple’s decision to allow the distribution of regulated sports betting and online gaming applications on its Brazilian App Store a key milestone for the consolidation of a transparent and integrity-driven sector.

This measure strengthens regulation by making it easier for users to clearly identify operators that are duly authorized to operate in compliance with national rules.

Following Google’s decision, made less than a year ago, to authorize the distribution of sports betting apps on the Play Store in Brazil, this initiative acts as a powerful cybersecurity filter and helps protect consumers from the risks of the illegal market.

Since only operators licensed by the SPA are allowed to offer services to iOS users, the process of channeling traffic into the regulated environment is further strengthened.

However, for the measure to be fully effective, continuous enforcement is required, as several illegal apps can still be found on major platforms.

Data from Instituto Locomotiva, in partnership with LCA Consultoria, indicate that the illegal environment—much of it controlled by organized crime—moves around R$40 billion per year in Brazil and generates an estimated annual loss of R$10.8 billion in tax revenue.

In this context, actions that help distinguish legal operators from unauthorized ones are essential.

The presence of applications on both the Play Store and Apple Store reinforces the commitment to Responsible Gaming, as they integrate functionalities required by legislation and audited by the platforms.

These include strict age verification to prevent access by minors under 18, clear risk warnings related to gambling, and self-exclusion tools.

The post IBJR hails App Store approval as a milestone in the fight against illegal betting in Brazil appeared first on Americas iGaming & Sports Betting News.

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Black Label

Pragmatic Play signs Latam Agreement with Black Label

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 Pragmatic Play, a leading content provider to the iGaming industry, has strengthened its reach in the regulated Latin American market through a multi-product deal with platform provider Black Label. 

The partnership will see Pragmatic Play’s premium portfolio, including Slots, Live Casino, and Virtual Sports, integrated into the Black Label platform, enabling regulated operators across LatAm to seamlessly access the supplier’s content. 

Pragmatic Play titles, including multi-award-winning slots such as Gates of Olympus and Sugar Rush, as well as popular crash games like High Flyer and Spaceman, are now available to Black Label’s partners in the region.

 Black Label, a 360‑degree online gaming experience, serves as an end‑to‑end integration platform for launching or scaling online casinos.

Built with a deep understanding of Latin American players and offered in Spanish, it provides locally aligned solutions for one of the fastest‑growing regulated markets in the industry. 

Victor Arias, VP of Latin America at ARRISE, a global iGaming software and services leader and a key partner to Pragmatic Play, said

“Latin America remains one of the most dynamic and fast-growing regions in the industry, and partnering with Black Label allows Pragmatic Play to further boost its reach across the market.  

“Combining Pragmatic Play’s award‑winning content with Black Label’s locally aligned platform to support operators and players across the region is another positive step, and one that further cements Pragmatic Play’s status in Latin America.”

 Roberto González, general manager at Black Label, added: “Pragmatic Play is a globally respected supplier, and integrating its multiproduct portfolio is a major milestone for Black Label. 

“Our platform is built specifically for the needs of Latin American operators, and adding Pragmatic Play’s high‑performing content further strengthens the value we deliver to our partners.       

The post Pragmatic Play signs Latam Agreement with Black Label appeared first on Americas iGaming & Sports Betting News.

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Advanced Compliance Technology

Advanced Compliance Technology partners with the Soccer Federation of Rio Grande do Norte

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ACT has been selected to collaborate in building integrity programs of Brazil’s football leagues through its independent, real-time Sports Integrity monitoring technology and specialized education programs  to strengthen Brazilian Sports Integrity.

Advanced Compliance Technology (ACT), a leader in compliance, sports integrity and risk solutions for the global regulated betting and gaming industry, has entered a partnership with the Soccer Federation of North Rio Grande, a regional member of the national Brazilian Soccer Confederation (CBF).

The agreement signifies an important step forward in Brazilian football’s vision for the future as it adapts to the needs of the country’s new sports betting regulations, with an equal focus on safeguarding the integrity of competitions and protecting the athletes.

Under the agreement, ACT will conduct a comprehensive analysis of the current status of the leagues’ needs operating within Brazil’s emerging regulated market.

ACT will also deliver educational programs tailored to the Brazilian sports markets, drawing on its expert sports leadership team, who share decades of experience and who have identified some of the largest match-fixing incidents in the United States.

The ACT team will combine their knowledge of sports betting, insider trading, and specialized analytics to address the growing need for sports integrity monitoring across Brazilian leagues. This will include the application of advanced technology through ACT’s proprietary online monitoring platform, the only real-time technology of its kind that is independent from betting operators and trading services.

Susan Bala, Co-Founder and Director at Advanced Compliance Technology, and former Delegate for the U.S. Commerce Department in Central and South America said: 

“We are entering a new chapter in global sports with the introduction of legalised sports betting in Brazil. The country has an incredible and proud history in soccer, producing many of the game’s greatest athletes.

ACT is very pleased to collaborate with the leadership of the Soccer Federation of Rio Grande do Norte league in their mission to build a strong future through education and application of the most advanced technology solutions to safeguard the sport.”

Felipe Silva, Acting President of the Soccer Federation of Rio Grande do Norte, and José Silva, Vice President of the Brazilian Soccer Confederation, said: 

“We are extremely pleased to be working with ACT on this initiative. We recognise the importance of educating our athletes and protecting the sport we love. It is our mission through this work to contribute to the future success of Brazilian football.

About Advanced Compliance Technology (ACT)

Advanced Compliance Technology is a leading provider of regulatory technology solutions for compliance and integrity monitoring in the global betting and gaming sector.

ACT’s all-in-one platform delivers the most advanced technology tools to help leagues, operators and regulators meet their complex compliance requirements with an independent expert service and real-time performance.

The company’s technology combines advanced geolocation intelligence, identity verification, advanced anti-fraud mechanisms, sports integrity and behavioural analytics to prevent circumvention, strengthen market integrity and support player protection.

The post Advanced Compliance Technology partners with the Soccer Federation of Rio Grande do Norte appeared first on Americas iGaming & Sports Betting News.

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