Kambi Group locked down a retail sportsbook extension with Penn Entertainment yesterday. The deal keeps Kambi’s technology running at 30 Penn casinos across 13 states. Penn Entertainment operates some of America’s biggest regional casino brands.
The original contract was set to end December 31, 2025. Both companies agreed to push that deadline to July 31, 2027 instead.
Werner Becher runs Kambi as CEO. He called Penn Entertainment a “leading operator” in the US market. The extension confirms Kambi’s status as Penn’s go-to retail betting provider.
Why Penn Needed This Extension Now
Penn Entertainment is building its own sports betting technology. But that system isn’t ready yet. The Kambi extension buys Penn nearly two more years to finish the transition.
This deal provides what Penn calls “additional flexibility” during the migration period. Operators can’t just flip a switch when changing betting platforms. The technical work takes time and careful planning.
Penn also just ended its online partnership with ESPN Bet on November 6. Jay Snowden, Penn’s President and CEO, said both sides “made significant progress” but agreed to stop working together. That split leaves Penn focused on casino games online while keeping Kambi for retail betting.
The timing matters. Penn needs stable retail operations while it sorts out its digital strategy.
What Technology Kambi Provides
The extended agreement covers Kambi’s full retail betting stack. That includes trading capabilities that set odds and manage risk. Betting kiosks let customers place wagers without staff help.
Penn properties also get “bring your own device” technology. Players can bet using their phones while physically at the casino. Over-the-counter solutions handle traditional ticket-writing at sportsbook windows.
All 30 Penn locations keep these systems through mid-2027. The setup serves bettors in 13 states where Penn holds casino licenses.
Kambi handles the backend trading work too. Their team sets lines and adjusts odds based on betting patterns.
How This Fits Penn’s Bigger Plans
Penn Entertainment is pulling back from certain digital markets. Snowden said the company will “realign our digital focus on our growing iCasino business.” That means online slots and table games get priority over sports betting apps.
But Penn still wants its “omnichannel advantage” as a retail casino leader. Physical sportsbooks remain important revenue sources. The Kambi deal protects that income stream.
Penn’s proprietary technology should eventually replace Kambi across all channels. The 2027 deadline gives Penn’s tech team a realistic window to finish development and testing.
Meanwhile, ESPN quickly replaced Penn with DraftKings as its new sportsbook partner. That happened right after the Penn-ESPN split was announced.
Kambi separately extended its deal with Paf, a Finland-based operator, just two days before the Penn announcement.
