Ontario Lottery and Gaming Corporation (OLG) is getting a new omnichannel sportsbook provider.

Kambi announced on Monday that it is taking over the contract currently held by France’s La Française des Jeux (FDJ). FDJ identified Kambi as its preferred assignee and Kambi expects the multi-channel migration to be completed in the second half of 2025.

The Swedish-founded, Malta-based B2B provider will take over from FDJ for the final seven years of a contract which runs until 2032.

Per the terms of the agreement, Kambi must make “a material initial investment” in order to assume its status as the contract holder.

It’s not quite a done deal. In Kambi’s quarterly earnings update this week, CEO Werner Becher said that “there remains some work to do to get this over the line.”

However, he added that he has “no reason to doubt” that the deal will be completed.

Kambi will add OLG to list of sportsbook partners

OLG offers retail and online sports betting through its PROLINE brand. Previously the monopolist on regulated sports betting before the province welcomed commercial operators into the mix, the lottery’s platform is estimated to hold around 20% of Ontario’s regulated online casino and sports betting market.

“OLG has a fantastic reputation in the Canadian province of Ontario where, until recently, it held the monopoly for sports betting,” added Becher in the earnings update. “OLG has a large existing retail business with an exciting growth opportunity in its online business where OLG has faced increased competition since re-regulation in 2022.

“I believe with a sportsbook of Kambi’s quality, combined with OLG’s local market knowledge and reputation, OLG can grow its online market share.”

Kambi already provides sportsbook solutions to commercial operators including Bally’s Corporation, MGM Resorts International subsidiary LeoVegas and Rush Street Interactive. In Ontario, it also powers retail sports betting for numerous Great Canadian Entertainment casinos, as well as Mohegan’s Fallsview Casino and Casino Niagara.

FDJ badly hit by French tax changes

FDJ stated earlier this month that its 2025 outlook has been “significantly” curtailed by France’s 2025 Social Security Financing Act, which is increasing levies on betting and gaming in the European nation from July 1.

The company estimates that the hike will automatically reduce its revenue and recurring EBITDA by nearly $67 million CAD in FY 2025, equating to a full-year impact of nearly $134 million.

While a reason for FDJ relinquishing its sportsbook contract with OLG was not given, Kambi added in its release that FDJ is stepping aside “in line with its strategic refocus on international activities on B2C operations in the lottery, sports betting and online gaming market.”

A FDJ spokesperson told Canadian Gaming Business that yielding the OLG contract was a planned move that is “not related in any ways to our recent announcements.”