London-listed gaming supplier GAN has been selected by an undisclosed US casino operator to power a new online gaming offering for Europe and other internationally regulated markets.
The online casino and mobile app is expected to launch in the first half of 2017 and will offer players real-money gaming via GAN's platform, which currently powers BetfairCasino.com in the regulated New Jersey iGaming market.
“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,” said GAN CEO Dermot Smurfit.
“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.”
The launch will be supported by a multi-year marketing commitment of US$10m per year over the term of the seven-year contract, wholly funded by GAN’s partner, and includes a $1.4m up-front cash payment for intellectual property assets and development services.
This will be paid on completion of due diligence and regulatory approvals, which are expected in the final quarter of this year. GAN will also benefit from a portion of the net income generated by the online casino.
The US operator, an existing client of GAN, is described as a “major multi-property casino operator in a regional US gaming market with approximately US$1bn in annual land-based gaming revenues.”
The online casino will operate on GAN’s existing infrastructure and will be compliant with the technical and legal requirements of the UK Gambling Commission.
It will be the first of its kind to offer non-US resident players access to the casino’s rewards program, redeemable on-property in the US, and will also offer players a live dealer casino experience which is expected to be broadcast from the casino’s flagship property.
“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,” continued Smurfit.
“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.”