International internet gambling software developer and content supplier GAN is making some aggressive moves in the US online and sports gambling markets, following last week’s US Supreme Court decision to lift the federal ban on sports betting.
GAN issued a press release Monday saying it has raised approximately $10 million (£7,500,000) through the sale of Subscription Shares and will use the cash to expand its reach in the United States.
GAN CEO Dermot Smurfit said the capital will help the company take advantage of opportunities in states where online gambling and sports betting is either legal and regulated, or about to be:
“This strategic capital raising exercise positions GAN to consolidate its US market position and capture substantial incremental revenue opportunities available resulting from both Internet gaming and sports betting regulation in New Jersey, Pennsylvania and other US States expected to regulate Internet gambling in the near future.”
GAN eyes emerging US sports betting markets
The company will use the money to increase software engineering resources with an eye on better serving existing US clients and attracting new ones. Particularly those in sports gambling, anticipating a number of state sports betting markets will soon open up in the wake of last week’s Supreme Court decision.
Plus, it plans to pay back approximately $2.68 million (£2,001,483) in unsecured loan notes. That leaves the company debt free and capitalized to levels it believes are required to serve major US casino groups.
GAN has two regulated real money online gambling clients in New Jersey. This includes the Betfair online casino site, which operates under the Golden Nugget New Jersey online gambling license. Plus, it has an online casino site currently in development with Ocean Resort Casino. Ocean Resort Casino is the former Revel Atlantic City boardwalk casino and hotel property scheduled to open June 28.
It also provides social casino software for Parx Casino and Racing in Pennsylvania. In addition to holding an agreement with the casino to launch real-money online gambling together when the PA market opens up. PA lawmakers passed online gambling legislation in October 2017. The regulatory and licensing process is ongoing. The state’s first online gambling sites are likely to launch in the fourth quarter of 2018.
The GAN-SBTech sports betting solutions deal
In January 2018, GAN inked a deal with sports betting solutions and online betting software supplier SBTech to serve the US land-based casino industry together.
The plan is for SBTech to supply real money sports betting services to GAN’s US casino clients. Plus, SBTech’s sports betting solution is being integrated with GAN’s GameSTACK enterprise online gambling software platform.
GAN also has 14 casino operator clients using its social casino software in the US and internationally. Plus, it provides the software platform for The Chickasaw Nation of Oklahoma WinStar European online gambling site.
GAN also boasts another ten real-money regulated online gambling clients in Europe. Its US casino clients represent more than 70 land-based casino properties across the country.