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Penn Entertainment will delay the migration of its retail sportsbook to in-house tech after extending its current contract with Kambi.

The agreement, which was set to expire July 2024, will see Kambi continue to supply Penn’s retail casinos with its suite of sportsbook products.

These include kiosks, point-of-sale terminals, odds boards and Bring Your Own Device technology.

At present, Kambi powers Penn’s land-based sports betting offering across 30 properties in 13 states.

This contrasts with its mobile sportsbook ESPN Bet, which is supported through in-house technology.

Penn said it intends to migrate its retail offering to this proprietary technology over the term of the Kambi contract.

While this was initially scheduled for 2024, the deal extension will see Penn granted an additional year to action the migration on the retail side. The business’ mobile migration completed in 2023.

As such, the amended agreement includes a clause granting Kambi its share of revenue until the contract expires, even if a casino switches to the in-house tech.

“We are pleased to agree to this extension to our retail sportsbook agreement with Penn Entertainment through which we have secured an important additional revenue stream for Kambi until the end of 2025,” said Kambi co-founder and CEO Kristian Nylén.

“As the industry’s leading sportsbook provider, both online and in retail, we are committed to providing our partners with cutting-edge technology and a premium service which Penn’s vast retail estate will continue to benefit from throughout the duration of the extended contract.”

Penn Q4 spooks market

Penn saw its share price plummet 18% over the last week, as the company’s Q4 report saw both EBITDA and revenue miss internal targets.

This was caused by a higher-than-expected number of ESPN Bet First Time Depositors (FTDs) taking advantage of promotional offers.

The company also saw a faltering market for the newly launched offering. While initial reports had suggested a 10% total US market share, this fell to 7% by the end of Q4.

However, the company’s planned launch in New York, the largest single market in the US, could go someway to addressing market concerns.

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