GAN expands into Europe with billion-dollar US casino
Seven-year deal agreed with unnamed operator, with launch date expected in H1 2017
GAN has been selected by an as of yet unnamed billion-dollar US casino operator to launch a real-money online casino in Europe for the first time in H1 2017, the company announced this morning.
Under a seven-year deal, GAN will power the new online casino for one of its existing US clients and will be backed by a minimum user acquisition marketing budget of $10m per annum.
The unnamed operator is described as a “major multi-property casino operator” in a regional US gaming market with around $1bn annual land-based gaming revenues.
GAN will receive a $1.4m cash payment for intellectual property assets and development services subject to due diligence and regulatory approvals, expected to be completed in Q4.
The casino will also be integrated into the operator’s on-property rewards programme, providing non-US players access to the scheme.
Dermot Smurfit, CEO of GAN, said he anticipates its casino product to perform “equally well” in Europe as it does in New Jersey’s regulated market.
“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,” said Smurfit.
“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 is expected to name the US casino operator when it announces its H1 2016 results later this month.