GAN Announces Major US Expansion with the FanDuel Group
London & Dublin | January 10, 2019: GAN plc ("GAN" or the "Company"), an award-winning developer and supplier of enterprise-level B2B Internet gaming software, services and online gaming content in the United States, today announced the signing of a material long-term deal with the FanDuel Group ("FDG") to be FDG's Platform for rapid deployment of Internet casino, and account services for Internet sports betting in Pennsylvania (pop. 13M) and West Virginia (pop. 1.8M), in addition to the existing services provided since 2013 by GAN to FDG in the State of New Jersey (pop. 9M).
This expanded contract represents a material increase in the value of the partnership to GAN across revenue share, professional services and patent licensing fees.
As part of the contract expansion FDG has agreed to license GAN's US Patent. GAN's patented technology allows land-based casino patrons enrolled in on-property loyalty programs to link existing loyalty cards to Internet gambling accounts and receive loyalty points in exchange for online gambling. Linking of patrons' loyalty cards is proven to greatly enhance online engagement by US casino patrons as well as substantially increasing lifetime value realized online through increased monetization and retention. Management believes that the recognition of GAN's US Patent significantly underpins GAN's intangible asset value and could potentially lead to further client partnerships and US Patent licensing revenue opportunities
· Second client in the State of Pennsylvania (FanDuel Group) in addition to Parx Casino
· Two additional US States (PA, WV) represent a combined population of approximately 14.8M
· Licensure of strategic US Patent for linking US casino patrons' loyalty cards to their online gambling accounts, greatly enhancing GAN's IP licensing & enforcement program
· Initial rapid deployment of FanDuel into both West Virginia and Pennsylvania
· Five-year contract term extension commencing in 2019 and ending in 2024
Dermot Smurfit, CEO of GAN commented:
"The contract extension combined with US Patent licensing represents a significant milestone in GAN's US evolution and reinforces our view that in the heavily regulated US online gambling market, effective and compliant 'platforms' are a premium component of the supply chain rather than a commodity. GAN is therefore very well placed to capitalize on the growth in US online gambling markets in terms of new operator clients, new States and underlying growth momentum."