Casino supplier GAN has used a stock issuance to raise £7.5 million in capital, much of which will be used to increase its presence in the U.S. and its emerging sports betting market.
The funds were raised through the issuance of 15 million new capital shares.
The company said the funds will “substantially increase its software engineering and operational resources to better serve existing major US clients.”
The capital will also help erase a £2 million convertible note from last year, making GAN debt free, according to legalsportsreport.com.
GAN shareholders gave approval to the plan in June.
“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,” said GAN CEO Dermot Smurfit in a press release.
Smurfit also said several of the company’s clients had already asked GAN to “review, procure and support the delivery of a sports betting solution.”
GAN has primarily been a supplier of casino games, but began moving towards offering sports betting products as the U.S. Supreme Court considered a challenge to a former ban on sports betting. The court eventually struck down the Professional and Amateur Sports Protection Act and New Jersey—which brought the legal challenge to PASPA—and Delaware have since legalized sports betting in their states. Several other U.S. states are expected to follow suit.
Early this year, GAN partnered with SBTech which already has an established bookmaking platform. The agreement gives GAN the capacity to provide sports betting services to its existing casino clients.
GAN also has deals involving social casino sites with Parx Casino in Pennsylvania, Instar (Oklahoma), Borgata (New Jersey), Red Rock (Nevada), and Empire City (New York), according to the report.
The company will also provide the platform for online casino offerings for the newly opened Ocean Resort casino in Atlantic City. It is also teamed with Paddy Power Betfair and is partnered in offering Betfair’s New Jersey-based online casino site.
