GAN extends relationship with Parx Casino

Gambling software supplier GAN announced on Monday that it had extended its relationship with Greenwood Gaming & Entertainment, which trades as Parx Casino.

The AIM-traded firm said Parx intended to offer internet sports betting and casino gaming in the US state of New Jersey, subject to approval by the relevant state regulatory authority, as well as in the state of Pennsylvania as it had previously announced on 30 July last year, with a commercial launch expected by year-end.

It said that on 6 March, the Pennsylvania Gaming Control Board (PGCB) conditionally approved GAN as an Interactive Gaming Manufacturer, which it described as a “key step”, which reflected its “reputation and long-held commitment” to transparency, compliance and probity.

The license was GAN's second gaming license in the United States, following the receipt of a full Casino Service Industry Enterprise license in New Jersey in April 2017.

GAN said the Pennsylvania licensing fee now payable was $10,000, and was “significantly lower” than its previous expectations for $1m in direct licensure costs for delivering interactive gaming services to clients in the state.

GAN also noted the award of a conditional license by the PGCB to Betfair Interactive US for a Sports Wagering Operator License.

“Betfair and its parent company FanDuel Group is a client of GAN for Internet gambling services in the state of Pennsylvania, as previously announced on 10 January 2019,” the GAN board said in its statement.

The board said that, following discussions with its clientele, it expected the internet gambling market in Pennsylvania to begin in summer.

Based on trading conditions in the year-to-date and lower Pennsylvanian licensing costs, it said it remained confident in the full-year guidance it provided on 25 January.

“The company expects mid-to-high double-digit percentage year on year revenue growth in the 2019 financial year, and full-year positive EBITDA, based on the current fixed cost base,” the board said in its statement.

“The board does not anticipate any additional capital requirement on the current business plan and the company is therefore fully-funded.”