International online casino supplier GAN is going to increase its footprint in the US.
Already involved in New Jersey online casinos, GAN announced this week it would be powering the online gambling arm of the planned Ocean Resort Casino, formerly the Revel in Atlantic City.
The UK-based company offers turnkey software solutions for both social and real-money online gambling. Its 2017 year-end report reveals some big ambitions on this side of the Atlantic.
GAN generates revenue by licensing patented software solutions to land-based casinos. It’s a business model that is in high demand in Europe, and the US is developing a need, too. Four states have legalized online gambling, and a host of others are considering it.
CEO Dermot Smurfit indicated that GAN generated positive EBIDTA for the whole of 2017. It’s profitable, in other words, after a long period of investment and development.
The company also expressed optimism for 2018 given the growing appetite for its products. It’s already made a couple of forward-thinking partnerships in the US.
Late last year, GAN quietly signed a multi-year agreement with AC Ocean Walk LLC, a then-unknown name in the gaming industry. A couple months later, the reasons for the partnership became evident.
AC Ocean Walk purchased the AC resort formerly known as Revel and TEN AC for $200 million. The property is slated to reopen this summer as the Ocean Resort Casino, and online gambling will be a part of the plans. GAN will power its iGaming presence.
With GAN, the Ocean Resort gains immediate access to a platform that is already licensed and vetted in New Jersey. That should give it a way to make an impact in a market that is showing consistent growth. AC Ocean Walk has already applied for its casino license, and an online gambling license will likely follow right behind it.
More from GAN: “This new Internet gaming destination is currently expected to launch in H1 2018 and will contribute materially to GAN’s revenue and earnings in H2 2018.”
The Ocean Resort is the newest client in GAN’s growing portfolio. The company has more than a dozen active partnerships in social and real-money markets, both in the US and abroad.
It has already established a presence in New Jersey, where it powers the software behind the Betfair Casino. The aforementioned TEN also used GAN’s social gaming platform, even though the property never actually opened. The previous owner, Glenn Straub, never obtained a gaming license, so the new owners are already off to a more promising start in that regard.
GAN is set up in Pennsylvania, too. It drives Parx Casino’s social casino, which will likely expand into a real-money platform in 2018. The state just legalized online gambling late in 2017, and there’s little doubt Parx will launch a product. GAN’s good standing elsewhere bodes well for its licensing in PA and beyond.
Borgata, Station Casinos, WinStar World Casino, Turning Stone and a handful of other properties also use its services.
In an effort to be an all-in-one platform, GAN has partnered with sports betting company SBTECH.
SBTECH is a European company, too, but it hadn’t yet established a foothold in the US. GAN opened the door into that market, with SBTECH set to provide its sports-betting technology to its new partner.
The implications in New Jersey are the most immediate. The state is currently trying to legalize sports betting within its borders, with the US Supreme Court set to decide the issue in the first half of 2018. If granted permission, casino operators will be climbing over each other to launch the first US online sportsbooks outside of Nevada.
GAN, at the front line of the new industry, is poised to reap big benefits from expansion.
Both Betfair Casino and Ocean Resort’s products would almost certainly be modified to include sports betting in that case. Betfair is already an established sports betting brand in Europe, so that seems a given. And Ocean’s new owner has expressed an early appetite for sports betting.