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FanDuel is taking up more ownership of its sports betting tech stack by moving off the GAN player account management platform.
According to a GAN statement yesterday, the company will stop receiving sports gaming revenues from FanDuel Sportsbook at the end of August. That’s because the operator is moving to its “proprietary digital wallet for its sports gaming business,” GAN said.
For FanDuel, the move onto proprietary technology has been well flagged. Its parent company Flutter owns much of its own tech for its various global betting brands.
As FanDuel president Kip Levin told Legal Sports Report recently: “We are actively evolving our platform to pull all products under the same roof, with one wallet, one account. That work has been going on for quite a while.”
The move to a singular account for players has not been without hiccups, however. Thousands of FanDuel players were locked out of their accounts over the weekend as the NJ and PA migrations hit a snag.
For GAN, the news was not well received by the market. Shares in the business fell by around 12% in after-hours trading.
The FanDuel sports betting deal was worth $3 million to GAN in 2019, or 10% of revenues. And the Aug. 31 end was only set two weeks ago, CEO Dermot Smurfit said.
However, Smurfit was quick to point out that GAN would continue to power FanDuel’s online casino business in the US.
“Moving forward, we expect that the revenue and earnings contribution for the FanDuel client relationship will continue to substantially grow with the expansion of real money internet casino gaming into West Virginia and Michigan before years end,” Smurfit said.
The company reiterated its full-year 2020 revenue guidance of $37 million to $39 million, which should be helped by the aforementioned launches of WV and Michigan online casino.
Overall company revenues for Q2 increased 99% year-on-year to $8.3 million.
In related news, Smufit said GAN was evaluating several opportunities to acquire its own sports betting engine.
At present it offers clients a third-party sportsbook, from Kambi or IGT for example, plugged into its player account management platform.
“In the event we make any such acquisition, it will be made available to US clients as just one option to choose from, alongside existing integrated sports content,” Smurfit said.
The CEO said that option would increase GAN’s share of any operator revenue.