Kambi Expects €45–50 Million in Operating Profit From Allwyn Agreement
Key Facts
Kambi and Allwyn have signed agreements granting the lottery operator a perpetual global licence to the code for a sports betting platform, along with related services and trading services, according to a Kambi statement dated November 10. Kambi expects the agreements to add about €45–50 million to its operating profit during 2027–2031. The company said about 40% of that amount will be recognised in 2027 and 20% in 2028. The structure reflects a gradual shift from licensing the technology to operating it in-house at Allwyn, while Kambi continues to provide trading and risk management services. The consideration Allwyn announced it would pay is €50 million over three years through 2029, a figure that differs in nature from Kambi’s estimate of expected operating profit.
Kambi’s estimate includes an expected upfront payment in early 2027, followed by payments tied to the completion of delivery milestones in subsequent years. Allwyn said it expects the €50 million consideration to be capitalised, with about half to be incurred in 2027. Financial commitments therefore begin before the transfer of technical and operational capabilities to Allwyn is complete. The difference in timing between the payments and profit recognition shows that the two figures describe different accounting aspects of the agreement.
Kambi will provide its proprietary AI-powered trading and risk management capabilities, and said the agreement will strengthen its global network and liquidity pool. In parallel, the company will build and train a team before transferring it to Allwyn following implementation of the source code. Kambi said the team transfer will give Allwyn operational and development control of the platform. Allwyn plans to build further central capabilities in trading, pricing and risk management, and expects the move to increase its central costs by low tens of millions of euros a year from 2027. The plan thus combines Kambi’s continued provision of specialist services with Allwyn’s development of in-house expertise to manage the technology and operations.
Allwyn says gross sports betting revenue from gaming activities exceeds €800 million across multiple geographies. The company holds long-term national lottery licences in Austria, Cyprus, the Czech Republic, Greece and the United Kingdom, placing the consolidation of betting technology within its existing operations across multiple markets. Allwyn’s statement said the in-house platform would serve its existing betting operations, with the potential to expand into new markets. Kambi also said it supports partners in more than 100 jurisdictions worldwide. It added that its technology has served tier-one operators for more than 15 years and supports multi-brand operations and regulatory regimes.
The agreement follows Kambi’s third-quarter 2026 results, with quarterly revenue of €46.0 million, up 23% year on year, and operating profit of €5.1 million, compared with €1.6 million in the corresponding quarter of 2025. On November 4, the company updated its 2026 guidance for adjusted EBITA (acq) to about €26 million, compared with a previous range of €23 million to €27 million. Kambi said it intends to return the majority of the agreements’ net proceeds to shareholders, while retaining financial flexibility to develop products and technology. It also warned that implementing the agreement will increase its operating expenses during the implementation period from 2027 to 2029. The company is scheduled to discuss the announcement on a call for analysts, investors and media on November 10 at 15:30 Central European Time.