Kambi looks to seize Italian opportunity
Chief executive Kristian Nylen says wider scope of bets and promise of new tax regime has created attractive environment for the supplier
Kambi will step up its efforts in the Italian market following new opportunities created by the recent deregulation of online sports betting, according to its chief executive Kristian Nylen.
Speaking to analysts after the sportsbook supplier reported a 29% increase in Q1 revenues yesterday, Nylen said recent regulatory changes, coupled with a likely move to a more favourable tax regime, had made the market increasingly attractive.
“Improved conditions creates new opportunities, [and] there are two main developments that have made us put more focus on the Italian market,” Nylen said.
“The Italian regulator has eased restrictions on what operators are allowed to offer and this has a significant impact, especially on live betting,” he said.
“Secondly, there is a proposal to change the gaming tax to be based on gross gaming revenues rather than turnover and this will have a positive impact on both operators and suppliers,” he added.
Nylen hinted that former parent company Unibet could be the first to launch an Italy-facing sportsbook on its regulated site but refused to be drawn on whether current Italy-facing customers such as 888, 32Red and Paf would follow suit.
“I don’t want to comment on what our operators’ decisions are but the first step for us was to produce a high quality service for them to integrate to and we hope they are eager to do something soon,” Nylen said.
The firm also hopes to tie-up deals with local Italian brands, some of which have struggled to compete with more technically advanced foreign competitors, and has hired an Italian-speaking sales representative to further that cause.
“We believe the need for a more sophisticated solution will be demanded by the Italian market,” Nylen said.
Within its results, the firm reported its improved live betting product to have played a significant role in its Q1 growth. Overall margin for the quarter was 7.1%, however, the supplier said in-play was higher than its longer-term 7.5% average.