Kambi Sees Huge Growth Potential In US Sports Betting Market

• Kambi is outperforming its peers in the US market, with double the potential growth.
• Legal sports betting expansion will allow Kambi to experience 40-50 percent EBITDA margins.
• SeekingAlpha suggests that investing in Kambi is a good bet.

Atlantic City, N.J. – With the popular pastime legalized, many Americans are excited to bet on sports. Many more are similarly excited to bet on sports betting.

To the latter point, there is an often-overlooked aspect of the burgeoning sports wagering industry in the US. Often, it is possible to invest in the platforms driving wagering adoption.

All state governments have long recognized buying and selling stocks as an overt form of gambling. Every state with gambling prohibitions has specific carveouts for playing the stock market.

Several publicly traded businesses are competing for contracts to handle US sportsbook services. As each new state legalizes betting, there is opportunity for the investor to get in on the ground floor.

One such company getting lots of press lately is Malta-based Kambi Group Plc. Many analysts see the brand as a strong investment opportunity.

Kambi Is The Early Market Leader

SeekingAlpha is a statistically oriented news service that focuses on stock market analysis. The service sees Kambi as a clear leader in its field. Kambi provides the platforms for many US sportsbooks, primarily in New Jersey and Pennsylvania.

Kambi is further primed to offer sportsbook services at Connecticut’s Mohegan Sun. The Mohegan Sun is one of the largest casino destinations in the world.

The company has also signed deals with other top US bookmaker brands like DraftKings, Greenwood Gaming, and Rush Street Gaming. The latter of these offers an entry point for Kambi to set up shop in New York and Illinois in the near future.

While Kambi has achieved reasonable global growth over the years, analysts expect the most future growth in the US market.

SeekingAlpha expects Kambi to experience a compound annual growth rate (CAGR) of 30 percent. This projection is in comparison to a 15-20 percent CAGR for its peers, brands like Playtech, IGT, and Scientific Games.

SeekingAlpha suggests Kambi will experience 40-50 percent EBITDA margins by 2022. This is up from its current EBITDA margin rate of roughly 29 percent. EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.”

Kambi is traded on the Nasdaq Stockholm under the ticker name KAMBI SS. With a market capitalization of $580 million, the company is still relatively small.

This makes investing in Kambi a viable opportunity for those worried that they might have already missed the legal sports betting boat.

News tags: Kambi