Kambi Shares Rise 17.4 Percent After First Source Code License to Allwyn
Kambi announced its first source code licensing deal with Allwyn, parent of PrizePicks, sending shares up 17.4% to 168.80 Swedish kronor. The agreement adds €45-50 million to operating profit from 2027-2031 while Allwyn pays €50 million through 2029 to internalize its platform after a $1.53 billion PrizePicks stake purchase. This shifts Kambi from pure services to IP monetization.
SCCG Take — The deal establishes a licensing precedent that balances operator control with supplier returns. Other B2B providers may now price similar source code transfers as operators consolidate U.S. and European tech stacks.
Kambi shares closed 17.4% higher at 168.80 Swedish kronor on nearly seven times average daily volume after the company announced its first source code licensing agreement. The deal grants Allwyn a perpetual license to Kambi's sportsbook technology and includes AI-powered trading and risk management services. Kambi will build and train a team that transfers to Allwyn.
Kambi Monetizes Its Sportsbook Source Code
This agreement shows the quality and strategic value of the sportsbook technology Kambi has built over more than 15 years, CEO Werner Becher said in a press release. Kambi expects the arrangement to contribute €45 million ($50.2 million) to €50 million ($55.8 million) to operating profit between 2027 and 2031. Roughly 40% is recognized next year through an upfront payment and 20% in 2028 through milestone payments.
The transaction raises operating expenses from 2027 to 2029. Kambi plans to return most net proceeds to shareholders. This marks a departure from the company's traditional model of supplying full sportsbook services to operators.
Allwyn Internalizes Technology After PrizePicks Acquisition
Allwyn generated more than €800 million ($892.9 million) in sports betting revenue in 2025. The company expects to pay €50 million ($55.8 million) for the agreements through 2029, with roughly half incurred in 2027. Internalizing the platform will support tailored products for individual markets and lower costs by operating multiple brands on one system.
The move follows Allwyn's $1.53 billion acquisition of a 62.3% stake in PrizePicks in January. As reported by Legal Sports Report, the transaction expands Allwyn's U.S. footprint through the daily fantasy sports operator that has since entered prediction markets. The license gives Allwyn greater control over platform development after the team transfer.
The arrangement sets a concrete mechanism for technology consolidation without requiring Allwyn to build a platform from scratch. What changes is the split between vendor services and owned IP: operators gain customization at the price of upfront and milestone payments, while providers like Kambi realize discrete value from accumulated code. The open question is how many other suppliers will follow this licensing path when operators with lottery-scale balance sheets seek ownership.
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