Stockholm-listed sportsbook provider Kambi Group is to power daily fantasy sports giant DraftKings' real-money betting offering.
The supplier has signed a multi-year agreement with DraftKings which will see it provide technology and related services to the operator.
Kambi will initially power the roll-out of a DraftKings sportsbook in New Jersey, after the state launched legal wagering last week. The deal includes provisions to expand the partnership into other states, depending on the passage of commercially-viable regulation.
"I am delighted Kambi has been selected to partner DraftKings as it enters the sports betting market," Kambi chief executive officer Kristian Nylén said.
"The Kambi technology is unique in that it empowers operators to innovate and create differentiated sports betting experiences, providing the flexibility which will be crucial in the developing US market," he explained.
Kambi said that it expects the partnership to provide a "significant" source of income in the long-term. However, the company admitted that it would be hard to gauge its impact on 2018 revenue due to uncertainty as to which states would legalise betting during the year.
The DraftKings partnership is Kambi's second major deal to be finalised following the Supreme Court ruling in May overturning the federal ban on sports betting regulation in the US. That month the supplier agreed to provide its sportsbook technology to Rush Street Interactive, a subsidiary of Chicago-based casino operator Rush Street Gaming.
DraftKings, meanwhile, is edging closer to entering the US sports betting market. Having first announced its plans for the vertical in February, it has now filed its application for a New Jersey licence and selected Resorts Casino Hotel as its licensing partner in the state.
The operator has also hired former Amelco executive Sean Hurley as head of sportsbook, and GVC Holdings' Karl Gambin as head of New Jersey operations.
Shares in Kambi Group plc (STO:KAMBI) set a new 52-week high of SEK167.00 per share during trading Wednesday in Stockholm, having gained 11.93 per cent following the annoucement.