Groupe Francaise de Jeux (FDJ) has assigned Kambi Group Plc to assume its role as lead technology partner of the Ontario Lottery and Gaming Corporation’s (OLG) sportsbook contract.
The assignment of Kambi Group requires the pending consent of OLG as FDJ has ‘prematurely retired its contract’ to offset upcoming changes impacting its business and services.
As detailed: “The three parties have since agreed to a contract novation process which, subject to conditions, is expected to lead to Kambi assuming the contractual responsibilities currently held by FDJ, which are due to run until 2032.”
2025 sees FDJ undertake a group-wide reorganisation in light of M&A developments acquiring Kindred Group Plc and tax increases imposed on the French market.
Last August, FDJ announced that it had sold its B2B technology unit of Sporting Solutions to Betsson AB. The deal was authorised to advance the integration of Kindred Group technologies for FDJ, and replace Sporting Solutions trading and risk management services.
Meanwhile in France, FDJ has activated a long-term action-plan to mitigate a €90m tax exposure due to forthcoming tax increases on gambling activities announced in Budget 2025.
Focusing on costs controls, FDJ has been forced to revise its existing commercial relationships, including its sportsbook technology contract supplying the OLG’s PROLINE brand online for approximately 10,000 retailers.
OLG is the Ontario government department responsible for operating and overseeing gaming facilities, charitable gaming, the sale of province-wide lottery games, and online sports betting and gaming.
Deal-terms noted that “To complete the assignment/assumption of the contract, Kambi must make a material initial investment which, as a non-recurring item affecting comparability, will not form part of Kambi’s full-year 2025 operating expenditure guidance.”
Kambi’s takeover of FDJ’s contract is expected to be completed in H2 2025. Kambi has had an established presence in Canada, since the launch of the Ontario market in 2022, serving as the principal sportsbook technology supplier of the Mohegan Gaming & Entertainment (MGE) and Great Canadian Entertainment leisure groups.
Werner Becher, Kambi Group Chief Executive Officer, said: “The prospect of partnering with an organisation of the size and stature of OLG is an exciting one for Kambi and we are working diligently to complete the novation process with FDJ and launch later this year.
“Ontario has a competitive online market, but I believe a combination of OLG and Kambi will see PROLINE rightly compete with market leaders while continuing to raise the bar of its retail product.”