The major London-based software provider GAN got a head start into the new year by signing a long-term deal with the Fan Duel Group. It will allow the gambling solutions company to offer their online casino, as well as account services for the online sports betting segment in two new US marketplaces, Pennsylvania and West Virginia.
With 61% of The Fan Duel Group owned by the massive Paddy Power Betfair platform, this is quite a significant achievement. As for GAN, which has been maintaining the partnership with FDG by powering their New Jersey online sports betting platforms, it is a step towards progress.
A population of about 9 million residents in this state, along with the 13 million from Pennsylvania and nearly 2 million from West Virginia would ultimately result in a welcomed expansion for the software provider.
What Does the Deal Say?
According to primary assessments, GAN will practically undergo an increase in revenue, along with a positive growth of their professional services and patent licensing fees. In return, they are expected to supply a platform that will enable “rapid deployment” of their online casino and sports betting solutions.
The platform will allow land-based casino players who are members of the on-site loyalty program to link their existing membership cards with their online accounts. This way they will be able to accumulate loyalty points for their online gambling activities.
GAN Expands US Influence
GAN’s patented technology for the US market is expected to increase its value as an asset to the industry, and to create opportunities for more profitable contract deals. The partnering Fan Duel Group is, in fact, the one to provide an entrance to such and other new territories.
The Impact of the Partnership
This deal means that GAN’s influence on the US Internet casino and sports betting territory is consistently soaring. After all, it marks their second client in Pennsylvania, after the Parx Casino had just released an on-site and Internet sportsbook. The platform managed to pass all testing periods, affirming their essential value.
Expansion of the platform to other markets and operators will bring greater population coverage, and at the same time, audience satisfaction.
As for the long-term part of the deal, interested players will be pleased to know that the existing partnership has been renewed for a five-year period, from 2019 to 2024. Throughout its duration, GAN’s one-of-a-kind technology provides land-based and online loyalty program integration, under the FDG’s licensing umbrella.
As CEO of GAN, Dermot Smurfit supported the deal:
The contract extension combined with US Patent licensing represents a significant milestone in GAN’s US evolution.
This reinforces our view that in the heavily regulated US online gambling market, effective and compliant “platforms” are a premium component of the supply chain rather than a commodity. GAN is therefore very well placed to capitalize on the growth in US online gambling markets in terms of new operator clients, new States and underlying growth momentum.