Allwyn to bring sportsbook tech in-house, take full ownership of IWG
Allwyn has agreed to acquire a perpetual licence to Kambi’s sportsbook source code for €50 million (~$56 million), as the multinational gaming group moves to take greater control of the technology behind its betting operations.
The deal, which is expected to be paid over three years, will enable Allwyn to develop a common sportsbook platform that would benefit from economies of scale.
Kambi will support the platform’s development and deployment during a transition period, before a dedicated team from the supplier is expected to join Allwyn.
Operating-cost savings over time
The €50m consideration is expected to be capitalised, with about half forecast to be incurred in 2027. Allwyn also plans to recruit or develop central teams covering functions such as trading, odds-setting and betting risk management. These teams are expected to add a low tens of millions of euros to annual central costs from 2027.
The company expects the move to generate operating-cost savings over time and potentially increase revenue, but has not forecast the exact financial impact.
Kresimir Spajic, chief executive of Allwyn Digital, said the agreement would give the company “greater freedom to evolve our offering, tailor products to individual brands and markets, and build a scalable foundation to accelerate future growth.”
Kambi chief executive Werner Becher said the deal reflected the strategic value of the company’s technology and would create “significant long-term commercial value” for the supplier.
Kambi says its technology is used by partners in more than 100 jurisdictions. The licence agreement is the first of its kind for the company, which will continue to provide services during a transitional period while Allwyn builds its own capabilities.
Allwyn to take full ownership of IWG
Allwyn also announced it is acquiring the remaining 30% of Instant Win Gaming (IWG), a digital instant-game supplier, for about $120m.
The price is based on a pre-agreed valuation formula and remains subject to closing and working-capital adjustments. Completion is expected in the first quarter of 2027.
IWG develops online instant-win games for lotteries and serves customers in the US, Europe and other international markets. The company reported 30% growth in adjusted EBITDA in 2025, measured in US dollars. Its founders are expected to remain in executive roles following the acquisition.
Allwyn took a majority 70% stake in IWG back in 2024, claiming at the time the purchase would enable the operator to “create and leverage high-quality content throughout the group.”
Allwyn has said full ownership would simplify its corporate structure and give it control of a leading digital content capability.
In-house tech a priority
Allwyn said it generated more than €800m in sports betting GGR in 2025. It expects a unified platform to help it tailor products to local markets, use technology across its operations and pursue cross-selling opportunities, particularly with its online casino business.
Earlier this year, Allwyn’s talks to acquire Novibet fell through. Allwyn withdrew from the acquisition following feedback from the Hellenic Competition Commission (HCC), with iGB understanding that a number of remedies which had been considered would have failed to maintain the value of the deal.
But bringing sportsbook tech in-house has remained a priority for the company. During the FY25 earnings call, CFO Kenneth Morton told analysts that “sports betting is the one bit that we don’t currently have in-house, which we do think is strategically important.
“We currently have on the lottery side pretty much everything that we think is important for the user experience and important for our long-term success in-house already, although not necessarily rolled out across the whole portfolio.”
Sign of what’s to come?
The news represents a significant move by a large European operator group to exercise greater control over its technology stack, and could be an indicator of the direction other operators will go as AI promises to decrease the cost and increase the speed of tech development in iGaming.
Operators are pursuing goals of greater technological flexibility in an effort to adapt to market changes quicker and stand out at a time of intense competition, especially with a growing focus on retaining players rather than acquiring new ones.
Allwyn said in a press release that licensing the source code directly would give it “greater scope to differentiate its sportsbook platform through products and features tailored to local markets and evolving player preferences.”