Renowned internet gambling company GAN has raised £7.5 million to support its ambitions to venture into the United States sports betting industry. The company confirmed the new development in a recent press release in which they also mentioned the issuance of 15 million new capital shares. In addition to this, the press release also elaborated how the online gambling company would use the £7.5 million to “substantially increase [its] software engineering and operational resources to better serve existing major US clients…” The amount will also help the company finally clear a debt in the form of a £2 million convertible note from 2017.
New and Enticing Market
With a number of states having already legalized sports betting or in the process of advancing legislation for the same following the Supreme Court ruling that repealed PASPA in May, the sports betting industry in the United States is beginning to bloom and this attracting a lot of attention. GAN just happens to be one of the large international gambling companies that are eyeing a piece of the American sports betting market.
“This strategic capital raising exercise, completed today, positions GAN to consolidate its US market position and capture substantial incremental revenue opportunities available resulting from both Internet gaming and sports betting regulation in New Jersey, Pennsylvania, and other US States expected to regulate Internet gambling in the near future,” GAN chief executive officer, Dermott Smurfit said.
Smurfit also mentioned that several GAN clients had already asked the company to “review, procure and support the delivery of a sports betting solution.”
Even though online gambling legislation in the US has begun to become sluggish owing to the fact that the legislative house sessions have closed till January 2019, the legislation that was being discussed before generated enough heat to catch the eye of a lot of players in the gaming industry. GAN, which is primarily a casino supplier, begun to maneuver its way towards the US sports betting market even before the US Supreme Court made their landmark ruling.
GAN teamed up with fellow B2B giant, SBTech earlier this year to establish a bookmaking platform under an agreement that gave GAN the capacity to offer sports betting services to all of SBTech’s existing casinos.
Even before that particular partnership, GAN was already proving to be a formidable force as it managed to maneuver its way around gambling expansion in the US over the past years. Most notably, in 2014, GAN struck a long-term deal with Pennsylvania’s Parx Casino – the first product of this partnership was a social online casino. The deal predated the state’s online gambling expansion but now that it is legal, if the old deal holds, the gambling company will launch “all forms of real-money internet gaming” for Parx in the next few months. this includes both sports betting and online poker.