Monday 12th of September 2016
GAN selected to launch real money Regulated Gaming in Europe
By Aim Listing
GAN plc, an award-winning developer and supplier of enterprise-level B2B Internet gaming software, services and online gaming content in the United States, announces it has extended an existing partnership with a major US casino operator (the “Client”) to launch an International overseas real money Internet casino gaming website and mobile App (the “Overseas Internet Casino”). The new website and App are expected to launch in H1 2017 and will target Europe and other International regulated gaming markets outside the US under a seven year contract with the Client.
- GAN’s first US Casino client to extend partnership into overseas’ regulated Internet gaming markets
- GAN selected following an extensive due diligence process based on its deep and proven capability in providing a custom-designed real money gaming experience integrated into an on-property loyalty program and casino management system
- GAN to receive an up-front $1.4m cash payment for intellectual property assets and development services following completion of customary due diligence and regulatory approvals – expected in Q4 2016
- Launch of the Overseas Internet Casino will be supported by a minimum user acquisition marketing budget wholly funded by the Client: $10m per annum over the term of the seven year contract
- GAN to participate materially in the net income generated by a unique Internet casino offering principally targeting a growing European Internet gaming market which is forecast to reach a value of $16.5bn in 20171
- The Overseas Internet Casino is expected to launch online in H1 2017 and will be integrated into the Client’s on-property rewards program - the first International real money Internet casino offering non-US resident players access to a major US casino’s exciting rewards program.
Dermot Smurfit, CEO of GAN commented: “GAN’s unique casino product is performing strongly in New Jersey’s regulated market and is anticipated to perform equally well in Europe’s fast-growing markets. Enabled by the US casino operator’s brand, US casino property facilities, balance sheet and marketing investment, we anticipate our B2B turnkey services delivered to this US casino operator to contribute material revenue and earnings commencing H1 2017. GAN will also receive a substantial cash payment for divesting legacy B2C intellectual property assets, receivable before year’s end 2016, which completes the strategic B2C Internet gaming divestment process first announced in September 2015. This divestment will position GAN as a B2B-only provider of enterprise grade Internet gaming technology solutions principally serving America’s major casino operators. This contract is a material long term revenue opportunity for GAN and an exciting opportunity for the Client to expand their land-based US gaming operations into the online channel, overseas.”
GAN will provide further detail on the prospects for the Overseas Internet Casino and on the disposal of the B2C assets at the time of the announcement of 2016 first half results on September 30, 2016.
Further details about GAN PLC click here