Ainsworth Game Technology has amended its content distribution deal with GAN, which will lose its exclusive licensing rights to distribute Ainsworth’s online slots in the United States next year.

Under the previously agreement which commenced in July 2021, GAN had received exclusive licensing rights to Ainsworth’s online slots in the US for a period of 5 years.

This agreement has now been replaced with an amended and restated integration and content distribution agreement, which will see GAN’s exclusivity end on 31 March 2024.

GAN will then operate on a non-exclusive basis and serve as a key strategic partner in the distribution of Ainsworth’s games.

This results in the previously received non-refundable US$5.0 million exclusivity payment being accelerated to reflect the revised exclusivity period, resulting in an uplift to Ainsworth’s financial results in FY 2023 and the first quarter of FY 2024.

The new agreement will eliminate the annual guaranteed license fees following the end of the revised exclusivity period in March 2024, while Ainsworth will also receive additional compensation of 1.25 million ordinary shares in GAN.

From 1 April 2024, Ainsworth will retain real-money gaming revenue from direct integrations with operators in addition to revenue from aggregation platforms, including GAN.

Current direct integrations within the US are averaging revenue of approximately US$1.5 million per annum, which is expected to progressively increase as new direct integrations are completed across North America.

While Ainsworth has previously supplied over 100 games to GAN through its Remote Gaming Servers (RGS) in Michigan, Pennsylvania, and New Jersey, the amended agreement will provide greater flexibility for Ainsworth to service its US customers, as well as offer an opportunity for better alignment in Ainsworth’s future digital and land-based strategies.

Shares in GAN Ltd (NASDAQ:GAN) closed 4.65 per cent higher at $1.35 per share in New York Monday, having dropped nearly 13 per cent in trading Friday, while shares in Ainsworth Game Technology Ltd (ASX:AGI) closed at AUD$1.03 in Sydney earlier Tuesday.