Allwyn Licenses Kambi's Sportsbook Source Code and Buys Out IWG for About $120m

Kambi has licensed its sportsbook source code for the first time, by Allwyn's account, to an operator with more than €800 million of annual sports betting revenue. For a supplier guiding to about €26 million of adjusted profit this year, it is a windfall, and a template other large operators will notice.

• Allwyn said on 10 November that it has taken a perpetual, global licence to Kambi Group's sportsbook source code, which it describes as the first transaction of this type for Kambi
• Allwyn puts the consideration at €50 million over the three years to 2029, and will add central trading, pricing and risk capabilities whose cost it estimates in the low tens of millions of euros a year
• Kambi expects the agreements, including a long-term trading services contract, to add about €45 million to €50 million to operating profit over 2027 to 2031, against 2026 guidance of around €26 million in adjusted EBITA
• Allwyn will separately buy the 30% of Instant Win Gaming it does not own for about $120 million, roughly €107 million, after the minority shareholders exercised a put option
• Neither company names the Allwyn brands that will move to the new platform or the systems they run on today

Allwyn Takes Kambi's Sportsbook Code In House on a Perpetual Licence

Allwyn, the lottery-led group listed on Euronext Athens, published its announcement of the two transactions on 10 November. It says the Kambi agreements will bring digital and retail sportsbook technology in-house on one platform across its sports betting operations, which generated more than €800 million of gross gaming revenue in 2025.

According to Allwyn, Kambi will provide development and deployment services during a transitional period, after which a dedicated Kambi team will transfer to Allwyn. Kambi's release, published at 12:15 CET under the EU Market Abuse Regulation, says building and training that team will add to its operating expenses over the 2027 to 2029 implementation period.

The releases describe trading differently. Kambi says it has signed a long-term agreement to supply its AI-powered trading and risk management. Allwyn says it will build central capabilities "including trading, pricing and risk management", adding what it calls a low tens of millions of euros a year to central costs from 2027, and expects segment savings and cross-selling with iGaming to deliver "attractive financial benefits over time". Neither explains how the two trading functions will divide the work.

Allwyn expects to capitalise the €50 million, about half of it in 2027. Kambi expects around 40% of its €45 million to €50 million to be recognised in 2027 and 20% in 2028, from an upfront payment in early 2027 and later milestone payments, and says most of the net proceeds will be returned to shareholders.

Neither release names a brand. Allwyn's betting assets include Stoiximan, which operates Kaizen Gaming's business in Greece and Cyprus and became wholly owned through OPAP in July 2025 for €191.6 million, according to CDC Gaming. Kambi's release says it will help Allwyn move its sports betting brands onto a single sportsbook platform, but neither release mentions a turnkey contract being replaced.

The IWG Buyout Follows a Put Option

In February 2024 Allwyn agreed to take 70% of Instant Win Gaming (IWG), the e-Instant supplier to lotteries co-founded by Rhydian Fisher and Simon Bucknall. Allwyn says the minority shareholders have now exercised a put option, priced on a pre-determined valuation at about $120 million before closing adjustments. It does not name the sellers, says the founders will stay in their roles, and expects completion in the first quarter of 2027. It says IWG's adjusted EBITDA grew 30% in 2025, without giving the figure.

For Kambi, One Deal Is Worth Most of a Year's Profit

On Kambi's figures, about €18 million to €20 million of operating profit lands in 2027, against 2026 guidance of around €26 million of adjusted EBITA, a different measure, after Brazil's ban and LeoVegas's departure clouded the outlook. The money is front-loaded and finite, so the deal lifts 2027 more than the long-term run rate. Returning most of it signals that Kambi treats it as a windfall.

Licensing the Code Turns a Churn Risk Into a Fee

Losing large customers has been Kambi's recurring problem, and LeoVegas leaving it in Sweden and the UK is the latest case. A source code licence lets Kambi charge an operator that wants its own platform, and the trading contract keeps a recurring link. The cost is that a large sportsbook built on Kambi code will develop outside its control, and every partner that, like QuinnBet, still runs turnkey now knows the code is available.

Allwyn Is Buying Control After Buying Growth

Allwyn's growth this year has come largely from acquisitions: PrizePicks supplied most of its second-quarter increase. Owning its sportsbook code and all of IWG cuts third-party margins. The €50 million is modest beside €800 million of betting revenue, but the new central costs recur, and Allwyn has not said when the savings arrive.

Kambi has found a way to be paid when an operator builds its own sportsbook. Allwyn now has to show that running its own sportsbook costs less than renting one.