Kambi revenues up 28%
The Q1 financial numbers were again strong. Kambi revenue increased 28% year-on-year and operator turnover grew by 46%. The majority of turnover growth came from customers operating outside of the US, underlining what was a strong performance from our existing roster of global customers.
We signed two new customers in Q1 – one based in the US and one in Europe. We outlined the signing of Rhinoceros Operations, which operates the Germany-facing mybet brand, in our Q4 report. I’m glad to say mybet has already launched on the Kambi Sportsbook platform. Towards the end of Q1, we signed Mohegan Gaming & Entertainment (MGE), the owner of Mohegan Sun, not just one of the largest entertainment resorts in the state of Connecticut, but one consistently rated among the finest in the US.
MGE is a fantastic signing for us. As well as its size and stature, MGE is Kambi’s first Native American customer and, we hope, the first of many. There are approximately 500 Native American casinos in the US, generating around 40% of the country’s casino gaming revenue, and for Kambi to be trusted to supply one of the largest Native American casinos is testament to the reputation and trust we have built since entering the US.
In addition to growing our existing customers, expansion in the nascent US market continues to be one of Kambi’s main strategic priorities. As expected, the regulation of sports betting state-by-state has been a slow process but one which may pick up in the coming months as states push for legislation ahead of the start of the next NFL season in September. Of more importance is that states regulate the right way. As we have seen in New Jersey, where mobile betting represents 80% of the market, online regulation is key if states are to channel players away from the illegal market into a safe and regulated environment.
Finally, I’m pleased to say our early success in the US hasn’t gone unnoticed. Earlier this month, Kambi topped two major categories at the EGR North America Awards in Atlantic City, winning both the Sportsbook Platform Provider and Sports Betting Supplier prizes against strong fields. It’s pleasing to see the fantastic progress we have made in the US receive recognition from the judges. The awards are a reflection of the hard work put in by everyone at Kambi, as well as the visionary operators using our Sportsbook.” CEO Kristian Nylén.