Kambi Group found a prime sports betting industry position in Ontario by becoming the Ontario Lottery and Gaming Corporation (OLG)'s official sportsbook partner. The deal is through an arrangement with Française des Jeux (FDJ Group), where Kambi assumed the OLG-FDJ contract.
The agreement takes effect following a final review and approval, with the transition to be completed in the second half of this year. The deal is a significant milestone for Kambi, securing its presence in the highly competitive Ontario market and strengthening its position in North America after recently securing a Nevada gaming license on Jan. 30.
OLG, the Ontario government-owned corporation, governs gambling and lottery activity in the province. Proline is its iGaming and mobile sportsbook business, available online and across approximately 10,000 retail outlets. OLG doesn't remit dividends to shareholders like commercial operators do, instead reinvesting all revenues into the province and financing public programs and projects.
The Ontario iGaming market saw a lot of growth after it launched in April 2022 and now has 50 operators. Among them are BetMGM, DraftKings, and FanDuel, as well as others.
“The prospect of partnering with an organization of the size and stature of OLG is an exciting one for Kambi and we are working diligently to complete the novation process with FDJ and launch later this year. Ontario has a competitive online market, but I believe a combination of OLG and Kambi will see PROLINE rightly compete with market leaders while continuing to raise the bar of its retail product,” said Werner Becher, Kambi Group's Chief Executive Officer.
OLG sees success amid competition
OLG's online gaming performance has been remarkable. Sports betting and online casino gross revenue stood at $630 million in the 2023-24 fiscal year, up from the $561 million it registered the previous fiscal year. In contrast, the private iGaming market, excluding OLG, handled an estimated $64 billion in wagers and generated $2.4 billion in gaming revenue.
Kambi's acquisition of the OLG sportsbook contract should improve OLG's market position. The company has a record of providing top-tier sportsbook technology, and when combined with OLG's brand name using Proline, could solidify and grow its customer base within Ontario.
The OLG deal is not Kambi's latest victory. The operator just extended its multi-year sportsbook partnership with BetCity, a Netherlands-based online sports betting and gaming operator Entain owns.
The terms of Kambi's deal with OLG reflect a persistent pattern where Canadian state-owned and crown corporations seek private technology providers for business partnerships to enrich their sports betting offerings. This is in line with OLG's strategy to modernize its gaming platforms and remain competitive against private market participants.
