Churchill Downs has a provisional agreement in place to move its BetAmerica online gambling brand onto a GAN platform and a Kambi sportsbook.
GAN noted in its Q1 earnings call this month it has secured an “agreement in principle” for a “Tier 1” client to move onto its GameStack platform. Online Poker Report understands that client to be Churchill Downs, though the deal is not yet signed and may still be subject to change.
GAN would provide the wider player account management (PAM) platform, and Kambi the sportsbook technology within that.
Both companies declined to comment.
Churchill Downs previously used the SBTech platform and sportsbook for its BetAmerica brand. However the brand has made relatively limited headway to date in New Jersey and Pennsylvania.
It also suffered a multi-week outage in April.
SBTech is furthermore owned by DraftKings now, meaning any growth from BetAmerica would also benefit a rival operator.
Churchill Downs and DraftKings also declined to comment.
At its Q1 earnings call, GAN said the incoming Tier 1 client could generate $300-400 million in annual revenue within three years.
“We’ve been working on this deal for an extended period of time,” said CEO Dermot Smurfit during the presentation. “We’re already burning calories and procuring the necessary infrastructure and getting ready to deploy, but we look forward to updating you and everybody else at the right time.”
Churchill Downs’ footprint matches that description, prompting speculation from investors.
– Retail and online operation
– New client
– Est GGR $300-400m in 3y
– Illinois, Tennessee, Michigan, New Jersey, Pennsylvania and Indiana
– Displacing an existing provider that has been active in US
Churchill Downs/BetAmerica (?) really dissatisfied with SBTech pic.twitter.com/pTdN5SVXoS
— dividendblower (@dividendblower) June 17, 2020
GAN’s GameStack platform is already live in the US as the PAM system underpinning FanDuel Sportsbook in some markets. Multiple services can be integrated into the software, including those from Kambi and IGT.