Mohegan Gaming walks away from Kambi sports betting deal after digital launch
Casino operator rejigs amended five-year revenue deal with sports betting supplier and is seeking an agreement with “alternative parties”
Mohegan Gaming & Entertainment (MGE) will ease off on its existing sports betting supply agreement with Kambi following the launch of its new digital gaming business.
To facilitate the rollback, MGE and Kambi have agreed a new version of their initial sports betting supply contract that changes the dynamic of their operating relationship.
This new agreement maintains current the financial terms set out in the initial deal between Kambi and MGE, signed in 2019, allowing Kambi to receive its full revenue forecasted for the duration of the initial agreement term.
However, the amendment allows MGE to collaborate with “alternative parties” to launch on-property and online sports betting in its native Connecticut.
Crucially, this frees up the MGE business to select a new alternative sports betting partner.
Kambi CEO and co-founder Kristian Nylén suggested the supplier was expecting to continue its existing relationship with the tribal gaming business.
“While we had been looking forward to supporting MGE become a sports betting leader in the Connecticut market, the amicable discussions between both parties have found a positive conclusion with MGE respecting Kambi’s financial interests for the duration of the original agreement,” Nylén said.
At present, Kambi and MGE are engaged in bilateral discussions with regards to exclusive sports betting alliances in additional territories where MGE has already secured market access.
Reports of interested alternative parties have linked DraftKings, FanDuel and BetMGM with a potential deal, although none has been formally confirmed as Mohegan’s new partner.
The agreement comes just 24 hours after MGE announced the launch of its own dedicated online gambling and sports betting business, Mohegan Digital.
The tribal gaming heavyweight, operating out of flagship casino the Mohegan Sun in Connecticut, has said it wants to provide “cutting-edge” online gaming to the firm’s existing customer base as well as expanding and scaling the business globally.
As a priority, Mohegan Digital will be primarily focused on the creation of an igaming offering for the Connecticut property following the legalization of sports betting and online gaming, which is set to become law on July 1.
MGE VP of interactive gaming Aviram Alroy, who has been with the business since 2014, was confirmed as VP of product, with Rich Roberts becoming Mohegan Digital CEO.
Speaking about the new arrangement with Kambi, Alroy said: “As we have seen first-hand in Pennsylvania, Kambi provides great product and is therefore one we look forward to potentially collaborating with in new market opportunities.”