As the sports merchandise provider Fanatics gets closer to launching its own sportsbook, the competition for its system business was heated. Most expected Kambi, the market share leader in the U.S., to be the winner, but Fanatics instead threw their business to Amelco, a London-based software company to provide its platform and player account management system.
Fanatics CEO Matt King mentioned the deal in a hearing before the Massachusetts Gaming Commission, where Fanatics is hoping to launch in 2023.
“It is a proven code base and operating platform in the U.S., as well as internationally, so we feel very good that we were able to build our business on the back of a world class and proven sports wagering technology,” King said.
The decision was surprising since Amelco’s U.S. business isn’t nearly as robust as Kambi’s. Listed as Amelco’s clients are Fubo Sports book, which is out of business; PlayUp, an Australian company with lots of legal problems; FoxBet, which hasn’t had much success; and Hard Rock which is operating in only four states.
Kambi, which is not without its own problems—its deal with Penn National’s Barstool was cancelled earlier this year—took a big hit with share prices dropping almost 13 percent the day of the hearing, wiping out nearly 11 percent of the company’s equity.
