Churchill Downs switches to Kambi and GAN to power online products
SBTech dropped as BetAmerica’s sports betting provider 27 months after partnership was first announced
Churchill Downs Incorporated (CDI) has entered into multi-year agreements with Kambi and GAN to provide the backbone behind its sports betting and online gaming offerings.
As part of the arrangement, GAN will supply BetAmerica with player account management and the casino platform, while Kambi will handle sports trading and risk management.
The partnerships mean DraftKings-owned SBTech will be supplanted a little more than two years after SBTech agreed a supply deal with the horseracing and gaming giant.
BetAmerica sportsbooks are currently available in New Jersey, Pennsylvania, Indiana and Mississippi.
Bill Carstanjen, CEO of CDI, said: “We believe the transition to Kambi and GAN as our new technology providers will enable our team to execute the rollout of BetAmerica sportsbooks and igaming product offering more efficiently as states move to legalize and implement regulations permitting sports betting and igaming in the coming years.”
Kambi said the deal is expected to have a small positive impact on 2020 revenue, although it has the potential to become “a material source of revenue over the course of the contract”.
BetAmerica’s online sports betting product has struggled to gain any meaningful headway thus far in New Jersey and Pennsylvania, with Eilers & Krejcik Gaming pegging its estimated market share in New Jersey at less than 1%.
News of BetAmerica departing SBTech comes six months after Golden Nugget announced it would switch to Scientific Games to provide its sports betting technology once its deal with SBTech expired.
Shares in Kambi, which powers sports betting for US operators DraftKings, Rush Street Interactive and Penn National Gaming, nudged up 2% in early trading on the back of the deal with CDI.