Allwyn to bring sportsbook technology in-house in €50m deal with Kambi

Allwyn has agreed a €50 million deal with sportsbook technology provider Kambi Group to bring its betting platform capabilities in-house, while also planning to acquire full ownership of digital games supplier Instant Win Gaming (IWG) in a move aimed at strengthening its control over key technology and content operations. The multinational gaming entertainment company said the two transactions formed part of its strategy to take ownership of capabilities that support product innovation, operational flexibility and long-term growth. Allwyn, which also operates in Cyprus, has a significant sports betting presence across several markets, generating more than €800 million in gross gaming revenue (GGR) from sports betting activities. The agreement with Kambi will give Allwyn access to the provider’s sportsbook source code through a global perpetual licence, allowing it to develop and operate its own platform rather than relying on an external technology provider. The arrangement is the first transaction of this type for Kambi, whose sportsbook technology is used by partners in more than 100 jurisdictions worldwide. Allwyn said bringing the technology in-house would give it greater control over the development of its betting products, allowing it to respond more quickly to local market requirements and changing customer preferences. It also expects a unified platform to generate economies of scale across its existing sports betting operations and create opportunities to increase cross-selling, particularly by combining sports betting with its substantial iGaming activities. Under the agreement, Kambi will provide development and deployment services during a transitional period, drawing on its experience of implementing sportsbook solutions across both digital and retail channels in multiple markets. A dedicated Kambi team will subsequently transfer to Allwyn to support the platform’s continued development. The company said the in-house platform would provide a scalable foundation for future expansion, both across its existing sports betting markets and potentially into new jurisdictions. The agreements with Kambi involve consideration of €50 million over the three years to 2029, which Allwyn expects to capitalise, with approximately half of the amount anticipated to be incurred in 2027. Alongside the technology transfer, Allwyn plans to strengthen its central sportsbook operations by developing additional capabilities in trading, pricing and risk management. These investments are expected to increase central costs by a low tens of millions of euros annually from 2027. However, Allwyn expects the additional expenditure to be partly offset by savings in segmental costs in subsequent years, while the expansion of its sports betting activities and potential revenue synergies with other product areas, particularly iGaming, are expected to generate financial benefits over time. Separately, Allwyn plans to acquire the remaining 30 per cent stake in IWG, giving it full ownership of the digital games developer and supplier. IWG specialises in e-instant games, which are digital versions of instant-win lottery games, and has a broad portfolio covering multiple categories. The company has established relationships with lottery operators in the United States, Europe and other international markets. IWG recorded 30 per cent year-on-year growth in adjusted EBITDA in 2025, according to Allwyn. The acquisition will follow the exercise of a put option held by IWG’s minority shareholders and carries an estimated consideration of $120 million (€107 million). The final amount will remain subject to customary closing and working capital adjustments, with completion expected in the first quarter of 2027. Allwyn said the transaction would also simplify its corporate structure and represent another step in its strategy of pursuing growth through acquisitions. IWG’s founders will remain in their executive positions following completion, maintaining continuity of leadership alongside the existing management team. “We are delighted to announce further progress in our strategy to own and manage key technology and content capabilities that enhance product innovation, differentiation and time to market, and support our ability to deliver a best-in-class customer proposition,” said Kresimir Spajic, chief executive officer of Allwyn Digital. “Our agreement with Kambi, leveraging its proven, scalable technology and deployment expertise to bring our sportsbook platform in-house, represents an important step in that strategy, giving us greater freedom to evolve our offering, tailor products to individual brands and markets, and build a scalable foundation to accelerate future growth,” Spajic added. “This agreement shows the quality and strategic value of the sportsbook technology Kambi has built over more than 15 years,” said Werner Becher, chief executive officer of Kambi. “A global market leader like Allwyn choosing our technology to unify its sportsbook operations reflects the strength of our product, our expertise and our track record of delivering at scale in regulated markets,” he stated. “It also brings Kambi significant long-term commercial value and shows how we can create additional value from the capabilities we have built, through strong, long-term partnerships,” Becher concluded.