GAN to launch real money regulated gaming in Europe
Source - SMW
GAN has extended an existing partnership with a major US casino operator to launch an international overseas real money internet casino gaming website and mobile App.
The new website and App are expected to launch in the first half of 2017 and will target Europe and other international regulated gaming markets outside the US under a seven year contract with the client.
- GAN's first US casino client to extend partnership into overseas regulated internet gaming markets
- GAN selected following an extensive due diligence process based on its deep and proven capability in providing a custom-designed real money gaming experience integrated into an on-property loyalty program and casino management system
- GAN to receive an up-front $1.4m cash payment for intellectual property assets and development services following completion of customary due diligence and regulatory approvals expected in Q4 2016
- Launch of the Overseas Internet Casino will be supported by a minimum user acquisition marketing budget wholly funded by the Client: $10m per annum over the term of the seven year contract
- GAN to participate materially in the net income generated by a unique Internet casino offering principally targeting a growing European Internet gaming market which is forecast to reach a value of $16.5bn in 2017
- The Overseas Internet Casino is expected to launch online in H1 2017 and will be integrated into the Clients on-property rewards programme - the first International real money Internet casino offering non-US resident players access to a major US casinos exciting rewards programme.
Chief executive Dermot Smurfit said: "GAN's unique casino product is performing strongly in New Jerseys regulated market and is anticipated to perform equally well in Europes fast-growing markets.
"Enabled by the US casino operators 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.
"GAN will also receive a substantial cash payment for divesting legacy B2C intellectual property assets, receivable before years 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 Americas 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."
(LON:GAN) Gameaccount Network Plc Ord 1p share price was +0.5p at 42.5p