Bally’s hits sportsbook reset button with Kambi and White Hat Gaming deals

Bally’s Corporation has signed multi-year agreements with Kambi Group and White Hat Gaming for B2B sportsbook and player account management technology, respectively.

Bally’s said the agreements, which are exclusive in nature, are to support the relaunch of the Bally Bet sportsbook across seven US states and at four retail gaming locations by the end of 2023.

In respect of Kambi, the agreement covers products, content, and trading on both retail and online sportsbook technology and igaming.

Additionally, Bally’s maintains the option, pending the satisfaction of “certain material performance metrics”, to acquire a licence to a limited part of Kambi’s online and retail technology source code.

In the event that Bally’s chooses to exercise the option and pay an agreed sum, the two parties would enter into a separate long-term outsourcing agreement in relation to Kambi’s range of modularised services.

Bally’s agreement with White Hat Gaming includes the provision of PAM software, inclusive of cashier, payments, and managed services technology, as well as modular technology added to the PAM service.

In a statement confirming the deals, Bally’s highlighted the change from a fixed-cost structure, under its previous B2C arrangements, to a variable cost structure, a change which the firm suggested could generate “significant cost savings” while reducing its overall risk.

“These benefits, coupled with enhancing Bally’s online and retail sportsbooks to drive further customer engagement with the Bally brand, will better position the company to deliver near- and long-term results to investors,” Bally’s stated.

The agreements with Kambi and White Hat Gaming seemingly signal the end of Bally’s own efforts to develop in-house sportsbook technology, something which began with the acquisition of the Bet.Works brand for $125m in November 2020.

Bally’s flagship sportsbook brand, Bally Bet, has been undergoing significant technological upheaval since that time as part of the operator’s aim to launch Bally Bet 2.0, an improved version of the sportsbook, however delays in realising those ambitions have seen the firm fall behind in the US market.

This, combined with rising net losses and an impairment charge of $390.7m relating to its North America Interactive segment, primarily Bet.Works and the now shuttered Monkey Knife Fight brand, saw the departure of Bally’s CEO Lee Fenton.

In February, Bally’s new CEO Robeson Reeves took aim at the Bet.Works brand over its platform failings, revealing Bally’s had been evaluating potential alternatives for a five-month period, with Reeves suggesting there were “more economical and nimble solutions” out there.

Releasing a statement following the agreements, Reeves said he was “very excited” to have signed the deals, citing the potential benefits to the business in the longer term.

“Kambi provides an award-winning sportsbook that delivers unrivaled sports betting entertainment,” the new CEO said.

“By incorporating that with White Hat’s PAM platform solution, as well as our geographic reach, customer base, and marketing prowess, Bally’s will be optimally positioned to achieve significant scale and capture substantial market share in the global gaming market.

“This, in turn, will support our vision of becoming the premier, full-service, vertically integrated casinos and resorts, online sports betting and igaming company,” Reeves added.