Online gaming software and content solutions provider GAN plc has added to its existing partnership with the FanDuel Group via the securing of a ‘material’ long-term deal that will see it provide the platform for deployment of FanDuel’s internet casino and account services for internet sports betting in Pennsylvania and West Virginia. This new, five-year, arrangement complements the already established services provided by GAN since 2013 to FanDuel in New Jersey.
GAN said in a press statement that this expanded contract represents a material increase in the value of the partnership across revenue share, professional services and patent licensing fees.
As part of the contract expansion FanDuel has agreed to license GAN’s US Patent. The firm’s patented technology allows land-based casino patrons enrolled in on-property loyalty programs to link existing loyalty cards to Internet gambling accounts and receive loyalty points in exchange for online gambling.
Linking of patrons’ loyalty cards, GAN claimed, is proven to greatly enhance online engagement by US casino patrons as well as substantially increasing lifetime value realized online through increased monetization and retention. It stated: “Management believes that the recognition of GAN’s US Patent significantly underpins GAN’s intangible asset value and could potentially lead to further client partnerships and US Patent licensing revenue opportunities.”
Dermot Smurfit, CEO of GAN commented: “The contract extension combined with US Patent licensing represents a significant milestone in GAN’s US evolution and 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.”
