LONDON & DUBLIN--(BUSINESS WIRE)--GAN plc (“GAN” or the “Company”), an award-winning developer and supplier of enterprise-level B2B Internet gaming software, services and online gaming content in the United States, today announces that GAN and Greenwood Gaming & Entertainment, Inc. trading as ‘Parx Casino’ (“Parx Casino”) have executed a material contract to offer Sports betting in both the retail and online channels in the Commonwealth of Pennsylvania. Parx Casino’s nominated third party sports betting application software provider will now be integrated by GAN with launch expected in H2 2018.
On July 16, 2018 GAN announced that Parx Casino had filed a petition with the Pennsylvania Gaming Control Board (“PGCB”) confirming Parx Casino’s intention to launch Internet gaming online in the State of Pennsylvania and identifying GAN as their enterprise software Platform provider.
Highlights
- GAN will participate in the incremental Sports betting revenues generated both in the Retail channel (i.e. on-property within the casino) and in the Online channel.
- Multi-year contract extension secured, proving the strategic merit of developing Simulated Gaming with US casino operators in advance of real money intra-State regulation.
- Pennsylvanian regulated Retail Sports betting is forecast to generate in excess of $100m1 in gross win in the first 12months and Internet Sports betting is forecast to generate a further $189m2 in the same period, in addition to the Pennsylvanian regulated Internet Gaming market forecast to generate $200m3 in gross gaming revenue online during the first twelve months of operation.
- Parx owns and operates the #1 land-based casino property in Pennsylvania located a short distance from Philadelphia, Pennsylvania’s largest City. In the most recent fiscal year ended June 30, 2018 Parx Casino generated $570m from slot machines and table games on-property representing a 18% share of the Pennsylvania’s $3.2bn gaming market.
- GAN’s US-patented technology will enable Parx Casino patrons enrolled in the on-property loyalty program, to sign up online and instantly link their reward cards to their online account permitting those guests to trade in their reward points earned from on-property gaming for cash online and/or to earn rewards points from Internet gaming and/or sports betting, to be subsequently redeemed on-property.
Management Commentary
Jeff Berman, Chief Commercial Officer of GAN commented:
“Following the execution of this extension and amendment, GAN now offers clients a Platform equipped with multiple options for integrated Sports betting to be launched seamlessly alongside GAN’s market-leading Internet casino product. We welcome the opportunity to deliver Sports betting in the retail channel, as well as online, through GAN’s unique Platform containing patented technology.”
John Dixon, CTO of Greenwood Gaming & Entertainment, Inc commented:
“GAN has ably demonstrated it abilities with both its overall Platform and its integration capability for existing major clients. By leveraging GAN’s Platform, Parx Casino will have the opportunity to launch retail and online Regulated Sports betting together with online Gaming in Pennsylvania later this year, subject to the regulatory approval of the PGCB.”
Notes
1 US Industry analyst Chris Grove of Eilers & Krejcik Gaming, LLC July 28, 2018
2 Regulus Partners, an International gambling advisory group June 18, 2018
3 Eilers & Krejcik Gaming, LLC | ‘Pennsylvania Gambling Expansion – Overview and Analysis’ November 8, 2017
Frequently Asked Questions (FAQ’s)
- For investors and Industry analysts: The core of a “Platform” from both a technical and regulatory standpoint is the Player Account Management System i.e. where highly sensitive customer and player activity data is stored and processed. Other elements of Platform can include a sportsbook transaction engine, gaming content integrations, payment services, marketing services, trading services and other ancillary activities. However, the core functionality to describe B2B systems and services as a 'Platform' is the Player Account Management System. This is also the layer of B2B activity which tends to require regulatory approval as a 'Platform' since it is the focal point of data and player security. Therefore, without the Player Account Management System, a service provider might be offering very valuable B2B functionality but not in the strictest sense a 'Platform' (source: Regulus Partners).
- Pennsylvania’s population of 12.8m is +42% larger than New Jersey’s population of 8.9m.
- There are currently twelve (12) land-based casino properties in Pennsylvania which together generated $3.2bn in land-based gross gaming revenue in fiscal year 2017/18 ending June 30, 2018.
- Internet casino gaming in the neighbouring State of New Jersey is a fast-growing market which generated $221m in Gross Gaming Revenue in CY2017 (+30% Year on Year) and is anticipated to grow +20% Year on Year to ~$266m in CY2018E.
- Patent 8,821,296 was issued to GAN plc in September 2014 and governs the automated authentication, card linkage and intra-system messaging between the on-property Casino Management System and GAN’s Internet gaming system. Already proven for Simulated Gaming, the launch of the real money Internet casino gaming for Parx Casino is anticipated to generate new on-property visitation by Internet-first players as well as increase visitation rates among patrons who first engage on-property with Parx Casino then subsequently play online from home, accumulating reward points from online play.
- GAN has licensed its US Patent fourteen (14) times to major US casino operators and Parx Casino is the third land-based casino operator to license the Patent for real money Online Gaming following the licensing & services agreements between GAN and Greenwood Gaming & Entertainment, Inc. announced November 2014; MDDC (The Borgata) announced December 2016; and Ocean Resort Casino announced July 2018.
- The Federal ban on sports betting enshrined within Professional and Amateur Sports Protection Act 1992 (“PASPA”) was repealed by the Supreme Court of the United States on May 14, 2018 permitting individual US States to pass their own sports betting laws.
- Pennsylvania passed legislation bill HB 271 on October 26, 2017 (signed into law on October 30, 2017) enabling land-based casinos in the State of Pennsylvania to launch real money Internet gaming and (subject to the repeal of PASPA) Internet sports betting.
GAN | Overview
GAN is a leading B2B supplier of Internet gaming enterprise software-as-a-service solutions to the US land-based casino Industry. GAN is listed on the ESM Market of the Irish Stock Exchange and the AIM Market of the London Stock Exchange under the ticker: GAN
The Company has developed an Internet gaming enterprise software system, GameSTACK™, which it licenses principally to land-based US casino operators as a turnkey technology solution for both regulated real-money and/or virtual Simulated Gaming. GAN has fourteen (14) casino operators as clients of Simulated Gaming coast-to-coast across the US and Internationally; two (2) clients of real money Regulated Gaming in New Jersey; one (1) client of real money Regulated Gaming in Pennsylvania and ten (10) clients of real money Regulated Gaming in Europe.
The Internet Gaming System, developed in London under a UK Gambling Commission license, is certified to the highest technical standards currently required by gaming regulators. In January 2018 GAN announced a strategic partnership with SBTECH, a leading European B2B sports betting technology provider. In April 2017 GAN was granted a Casino Service Industry Enterprise license by the New Jersey Division of Gaming Enforcement being GAN’s first privileged gaming license in the United States. In May 2018, the US Supreme Court repealed PASPA and GAN confirmed the H2 launch of sports betting for US clients integrated into GAN’s enterprise software platform.
For more information please visit www.GAN.com
