GAN welcomes new Desmond investment
GAN, the company behind Simulated Gaming, said it is to pursue new customers in the US casino industry following further investment from Irish tycoon Dermot Desmond.
In a statement, the iGaming software and services supplier, formerly GameAccount Network, said it has raised £1.3 million (€1.5 billion / $1.7 million) through the sale of more than three million new shares to Desmond’s IIU Nominees, a long-term investor. The placing represents almost 5% of the enlarged issued share capital of GAN.
The company, whose existing clients include the Borgata in Atlantic City, said it plans to use the net proceeds of the placing to accelerate product development and new customer delivery.
GAN said it expects continued strong demand for both real money gaming and its social product Simulated Gaming in the US, focusing in particular on Pennsylvania, which is tipped to legalise online gaming later this year.
Desmond is a major shareholder in Ladbrokes, and was the owner of BETDAQ before it was sold to Ladbrokes for around €30 million in 2013.
Dermot Smurfit, chief executive of GAN, said: “Additional capital allows us to accelerate the development of our technical capability to deliver the product requirements of our growing list of corporate clients and bring new clients online.
“The positive and unexpected surge in US corporate demand for GAN’s unique services requires increased delivery capability.
“We’re happy to respond to this real business need on behalf of all shareholders and welcome Mr Desmond’s investment.
“Mr Desmond is an astute investor with a long track record participating in the internet gambling market and we believe this investment validates our strategy and technology which will deliver significant incremental value for shareholders over time.”
In an interview with the Irish Times newspaper, Smurfit said GAN is in “advanced talks” with a major US land casino operator to launch a real-money online gambling site in Europe and Asia.
“We can provide access to countries where there are regulated markets covering 29 per cent of the world’s population,” Smurfit told the newspaper.
“This is a big strategic move for us; the market hasn’t yet seen a major US land casino enter online in Europe.”
Earlier this month, GAN announced its 13th client win as it agreed a partnership to supply its Simulated Gaming product to an as-yet-unnamed fourth major casino operator.
Related article: GAN secures 13th US client for Simulated Gaming