IRVINE, Calif.--(BUSINESS WIRE)--GAN Limited (the “Company” or “GAN”) (NASDAQ: GAN), a leading full-service internet gaming software-as-a-service provider to the real money internet gaming and online sports betting industries, today announced that it delivered an all-time record 14.6 million settled online bets the day of Super Bowl LV, up 186% vs. last year’s event. Additionally, the Company reached an agreement with current customer Greenwood Gaming & Entertainment, Inc., trading as ‘Parx Casino’ (“Parx Casino” or “the Client”), to license GAN’s patented iBridge integration framework for 10 years.
Reflecting the strength and value of GAN’s intellectual property (“IP”), the agreement calls for Parx Casino to pay a total licensing fee of $3 million and implies a patent license of roughly $75 per reward card, validating a ‘per unit’ value of the patent. GAN has also agreed to amend its existing contract with Parx Casino, and will release the Client from exclusivity moving forward.
Dermot Smurfit, Chief Executive Officer of GAN commented:
“GAN delivered uninterrupted performance for all our U.S. clients during Super Bowl LV, just as we did last year and the year before that. Yesterday, we experienced record all-time transaction volumes before, during and after the Super Bowl and look forward to leveraging the experience, technical data and knowhow to prepare for next year’s technical onslaught which we expect will see Super Bowl betting on GAN’s Platform taking place across perhaps more than a dozen States simultaneously. We’ve started the year with strong business and financial momentum and this patent licensing deal further validates our industry leading IP and sets a new bar for its value per reward card. Since we deployed our patented functionality in the U.S. for online gaming, those online customers who have linked their retail gaming loyalty cards to their counterpart online gambling accounts have generated in excess of 160% more Gross Gaming Revenue (online casino) and 140% more Gross Sports Win (from online sports betting) as compared to those customers who have not linked a loyalty card to their online gambling account. These results demonstrate not only the direct value of our technology and IP, but also the ‘stickiness’ of GAN’s platform to our customers.”
United States Reward Card Opportunity
There are a reported 80 million unique American adults who regularly frequent casinos for retail gaming and who together possess 150 million individual Reward cards offered by more than 1,000 retail casino gaming properties located in 48 States. Certain major U.S. casino operator groups have tens of millions of card-carrying retail gaming patrons within their casino patron databases. These patron databases are frequently cited as a competitive advantage supporting the same retail casino operators’ launch of internet sports betting and/or casino gaming.
Dermot Smurfit concluded:
“This is the second time GAN has licensed its patented iBridge Framework on a standalone basis and we believe the opportunity to leverage our intellectual property here in the U.S. remains large. We continue to be engaged in numerous conversations with both large and small casino-operators to partner with GAN in order to seamlessly connect their loyal reward-card carrying customers to their various online offerings. As a result, we believe we are on track to license our iBridge patent to additional U.S. casino operator groups in 2021 and throughout the patent’s remaining 13-year duration, which should help us drive long-term value for our shareholders.”
About GAN Limited
GAN is a leading business-to-business supplier of internet gambling software-as-a-service solutions predominantly to the U.S. land-based casino industry. Coolbet, a division of GAN, is a market-leading operator of proprietary online sports betting technology with market leadership positions in selected European and Latin American markets. GAN has developed a proprietary internet gambling enterprise software system, GameSTACK™, which it licenses to land-based casino operators as a turnkey technology solution for regulated real money internet gambling, encompassing internet gaming, internet sports gaming and virtual Simulated Gaming.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding future Super Bowl betting on GAN’s platform, GAN’s ongoing service relationship with Parx Casino and related profitability, GAN’s opportunity to leverage its intellectual property in the U.S., and GAN’s expectations regarding licensing its patent to additional U.S. casino operator groups in the future, as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update or revise any forward-looking statements for any reason, except as required by law.