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GAN Addressable Market Doubles as Pennsylvania Becomes Fourth State to Regulate Internet Gaming in the U.S.

October 27, 2017

LONDON & DUBLIN--(BUSINESS WIRE)-- GAN plc (“GAN” or the “Company”) a leading B2B supplier of Internet gaming enterprise software-as-a-service solutions to the US land-based casino Industry, welcomes yesterday’s final approval by the Pennsylvanian House of Representatives of HB 271 a bill that includes provisions for the legalisation of full real money Internet casino gaming in the state. The bill will now be presented to the Governor of Pennsylvania in the next few days to be signed into law.

With a population of 12.8 million, the State of Pennsylvania doubles the number of Americans who will be permitted to play Internet casino games. The Pennsylvanian regulated Internet gaming market is now expected to commence in H1 2018 and GAN is positioned for strong revenue growth from that market commencing in 2018.

Management Commentary

Dermot Smurfit, CEO of GAN commented:

“Yesterday we witnessed the House and the Senate in Pennsylvania passing real money Internet gaming legislation. Pennsylvania is now America’s fourth State to regulate Internet gaming and may jumpstart the regulatory cycle for Internet gaming in the US. GAN is the only fully licensed B2B-only platform vendor in neighbouring New Jersey and one of the very few B2B-only technology vendors with the requisite technical expertise and ‘day one’ New Jersey experience to credibly serve Pennsylvania’s land-based casinos.”

Highlights

  • GAN anticipates serving diverse land-based casino operators in Pennsylvania with real money Internet gaming technology and supporting services in 2018 and has already deployed the Company’s GameSTACK™ real money Internet gaming system on-property with existing client Parx Casino in preparation for iGaming regulation in Pennsylvania.
  • With a population of 12.8m the State of Pennsylvania doubles the number of Americans who will be permitted to play Internet casino games in CY2018.
  • In the neighbouring State of New Jersey (pop. 9m) the Internet gaming market commenced in November 2013 and generated $197m in gross Internet gaming revenues in calendar year 2016 representing 8.2% of the $2.4bn in land-based gross gaming revenues generated by New Jersey’s eight (8) casino properties operational in full or in part throughout 2016.
  • Regulation of Internet gaming in Pennsylvania signals the possible continuance of the regulatory cycle approving Internet gaming in incremental US States. Michigan and New York are also considering regulation of one or more forms of Internet gaming. GAN has existing US casino operator clients of Simulated Gaming with casino properties located in Michigan and New York.

FAQ’s about US regulation & GAN’s real money online Regulated Gaming

  • Internet gaming was effectively out-lawed in the United States during October 2006 by the Unlawful Internet Gaming Enforcement Act by prohibiting financial institutions from processing Internet gaming payments.
  • In 2013 three (3) US States passed laws to regulate Internet gaming within their borders: Nevada (pop. 2.8m), Delaware (<1m) and New Jersey (8.9m) comprising a total of 12.6m people representing less than 4% of the US population (324m).
  • Pennsylvania has a population of 12.8m, which more than doubles the number of Americans, who will be legally permitted to wager real money on Internet casino games following the commencement of Regulated Gaming in the State of Pennsylvania, anticipated in the first half of 2018.
  • Real money online Regulated Gaming for GAN comprises wholly-regulated and US-compliant Internet gaming where end user players resident in wholly-legal jurisdictions deposit & wager real money while playing casino games online.
  • GAN received its first full US gaming licence in April 2017 awarded by the State of New Jersey.

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 thirteen (13) casino operators as clients of Simulated Gaming coast-to-coast across the US; two (2) clients of real money Regulated Gaming in New Jersey; 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 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.

For more information please visit www.GAN.com.

GAN
Dermot Smurfit, +44 (0) 20 7292 6262
Chief Executive Officer
[email protected]
or
US Investors: The Equity Group
Adam Prior, 212-371-8660
[email protected]
or
UK & Ireland Investors: Walbrook PR
Paul Cornelius, +44 20 7933 8780
[email protected]
or
Davy (Nominated Adviser, ESM Adviser and Joint Broker)
John Frain / Barry Murphy, +353 1 679 6363
or
Liberum (Joint Broker)
Neil Patel / Cameron Duncan, +44 (0) 20 3100 2000

Source: GAN plc