The lottery-led group is paying €50 million for a perpetual licence to Kambi’s source code so it can run its own sportsbook platform. It is also taking full ownership of e-instant games supplier IWG for about $120 million.
Allwyn has agreed to license the source code of Kambi’s sportsbook technology so it can build and run its own betting platform in-house, ending its reliance on an outside sportsbook provider. Both companies announced the deal on 10 November 2026. On the same day, Allwyn said it would buy the remaining 30% of Instant Win Gaming (IWG) that it does not already own.
The two deals continue what Allwyn calls its strategy “to own and manage key technology and content capabilities”. For Kambi, it is a new kind of agreement: the company describes it as the first transaction of its type.
What was agreed
Under the agreements, Kambi grants Allwyn “a perpetual, global license to its sportsbook source code”, according to Kambi’s announcement. Kambi will provide development and deployment services during a transition period. It will also build and train a team that will transfer to Allwyn once the source code has been implemented, giving the operator “full operational control and development capabilities”.
The two companies have also signed a long-term trading services agreement. Kambi will continue to supply Allwyn with its AI-powered trading and risk management services, which Kambi says will also strengthen its own global network and liquidity pool.
Allwyn says the consideration is €50 million over the three years to 2029. It expects to capitalise the cost, with about half falling in 2027. Separately, Allwyn plans to build its own central sportsbook functions, including trading, pricing and risk management, which it expects to add a “low-tens-of-€millions amount” to annual central costs from 2027. It expects the deal to deliver “attractive financial benefits over time”, once savings in segment costs and revenue opportunities are counted, particularly cross-selling with its online casino business. It has not given a specific forecast.
The view from each side
Allwyn says its sports betting gross gaming revenue was more than €800 million in 2025. It says bringing the technology in-house will give it ownership of “a core strategic capability”, economies of scale from a common platform, and more freedom to tailor products to local markets.
“Our agreement with Kambi, leveraging its proven, scalable technology and deployment expertise to bring our sportsbook platform in-house, represents an important step in that strategy,” said Kresimir Spajic, chief executive of Allwyn Digital. He said it would give the group “greater freedom to evolve our offering, tailor products to individual brands and markets, and build a scalable foundation to accelerate future growth”.
For Kambi, the deal turns more than 15 years of platform development into a one-off licence and service fees. The supplier, listed on Nasdaq First North in Stockholm, says the agreements are expected to contribute about €45-50 million to its operating profit over 2027-2031. Around 40% of that is expected in 2027 and 20% in 2028, including an upfront payment in early 2027 and milestone payments after that. Building the team that will move to Allwyn will add to Kambi’s operating expenses during the 2027-2029 implementation period. Kambi says it intends to return the majority of the net proceeds to shareholders.
“This agreement shows the quality and strategic value of the sportsbook technology Kambi has built over more than 15 years,” said Werner Becher, Kambi’s chief executive. He said it brings Kambi “significant long-term commercial value”.
Full ownership of IWG
The second deal concerns content. Allwyn will acquire the 30% minority stake in IWG, a developer of digital e-instant and instant-win games for lotteries in the US, Europe and elsewhere. The purchase follows the exercise of a put option by IWG’s minority shareholders. The price is about $120 million (€107 million), based on a pre-agreed valuation formula and subject to customary closing and working-capital adjustments.
Allwyn says IWG’s adjusted EBITDA grew 30% in 2025, measured in US dollars, and that IWG’s founders will stay in their executive roles. Completion is expected in the first quarter of 2027. According to iGaming Business, Allwyn first bought its 70% majority stake in IWG in 2024.
Why it matters
Kambi’s core business is supplying operators with its Turnkey Sportsbook and Odds Feed+ products, according to its own company description. Licensing the source code outright is a different model, somewhere between renting a supplier’s platform and building one from scratch. Allwyn gets a working platform with a track record across more than 100 jurisdictions, according to both companies, and can then change it as it chooses.
The deal is also one of several moves this month in which large groups have reshaped their supply chains. Playtech’s trading update on the same day showed how much a supplier’s results depend on a small number of large operator partners. Bally’s Intralot is buying evoke, the owner of William Hill and 888, partly to combine its technology with evoke’s brands.
Who is affected
Allwyn’s betting customers should not notice any change for some time. The platform has to be built and deployed first, and Kambi will continue to provide trading services under the separate agreement. Allwyn holds long-term national lottery licences in Austria, Cyprus, the Czech Republic, Greece and the UK, according to Kambi, and runs sports betting and iGaming businesses in several markets. Neither company has said in what order brands or markets will move to the new platform.
For Kambi, the agreements bring income over several years but reduce its future platform role with one large customer. Allwyn becomes the owner of a platform built on Kambi’s code rather than a turnkey client.
What happens next
Allwyn expects to start incurring the bulk of the €50 million in 2027, which is also the year its new central trading teams start adding to costs. Kambi expects its upfront payment in early 2027. The IWG purchase is due to complete in the first quarter of 2027. No date has been given for the first brand to go live on the new platform.
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