Kambi Group has a new home. And it’s right in the heart of sports betting country.
The Stockholm-listed sportsbook provider has set its sights on opening a Philadelphia office sometime in the second quarter of 2019. The provider for four of six PA sports betting operations and three of the top four online sports betting services in nearby New Jersey, Kambi will have its first US-based office in the near future.
“The opening of a US office has long been part of our plans and we have taken the time to carefully weigh up a number of different options to ensure we settled on the right location,” Kambi Chief Commercial Officer Max Meltzer said in a statement.
“In Philadelphia we have found a city that ticks all the boxes — great proximity to customers, a people passionate about sports and high performing local universities. The team we are building will tap into that local talent and ensure we can provide an even greater level of service to our customers.”
Philly checks all the boxes
As noted, Kambi certainly has roots laid in the Northeast, specifically in two states that could challenge Nevada as sports betting king.
At the heart of it all: the Philadelphia sports betting market.
According to Kambi, the group selected Philly for four key reasons:
- The proximity to current and prospective customers
- The East Coast contains most states where regulated sports betting currently exists
- The city’s passion for sports
- Local talent, specifically in terms of educational institutions in the area. “We believe we can benefit from those graduating reasonably locally,” Kambi said.
Kambi said it is in the process of hiring “a number of roles,” including in customer support, technical support and trading/odds compiling.
Initially, the group said, the office will begin with approximately 30 employees before steadily growing depending on business requirements.
Kambi sets up shop amid booming business
Kambi has taken the sports betting world by storm since the US Supreme Court repealed PASPA in 2018.
The group, for example, reported Q4 revenue growth of 14 percent. It entered the NJ sports betting landscape at the ground floor, powering DraftKings Sportsbook since its launch in August 2018.
During that time, DraftKings has totaled $37.3 million in revenue, accounting for nearly 54 percent of overall sports betting revenue by online sports betting products. Kambi also powers two other popular online sportsbooks in New Jersey: SugarHouse NJ and 888 Sport.
In December, Kambi brought its business to Pennsylvania as SugarHouse Sportsbook and Rivers Sportsbook opened in Philadelphia and Pittsburgh, respectively. Another two Kambi-powered operations opened in January as Parx Sportsbook and South Philadelphia Turf Club entered the market.
These properties have combined for $37.7 million in accepted wagers, which is about 76 percent of the overall handle. They also produced $3.9 million in revenue, which is about 81.2 percent of overall revenue since the industry launched in November.
With growing business in New Jersey and with Pennsylvania continuing to expand both with retail sportsbooks and PA online gambling sites, Kambi now sits in the heart of it all.