LONDON–(BUSINESS WIRE)–GAN plc (“GAN” or the “Company”), an award-winning developer and supplier of enterprise-level B2B Internet gambling software, services and online gaming content in the United States, welcomes today’s passage into Michigan law HB 4311, a bill that includes provisions for the legalization of full real money Internet casino gaming in the State of Michigan as well as Internet sports betting. The bill has now been signed into law by the Governor of Michigan, and the market is expected to commence in 2020. Consistent with the regimes implemented in New Jersey, Pennsylvania, Delaware and West Virginia, Michigan has elected to enable all forms of Internet gaming as well as Internet sports betting, thereby maximizing the commercial opportunity for all Industry stakeholders as well as ensuring new State tax revenues from Internet gambling will be material at 8.4% on sports betting revenues and up to 28% on Internet gaming revenues.
With a population of 10.0 million (3.1% of the US population), the State of Michigan materially increases the number of Americans who will be permitted to gamble online. In total, 21.3% of Americans now live in States with legislation enabling Internet gambling. With Michigan’s regulated Internet gambling market expected to commence in 2020, GAN is strongly positioned to serve Michigan casino operators in that State.
There are 26 casinos in Michigan comprising three commercial casinos in Detroit and a further 23 Native American casinos throughout the State. The Internet gambling market is forecast to generate $377 million in Gross Operator Revenue in the first 12 months of operations, increasing to $836 million in the fourth operating year (source: Regulus Partners, an International gambling consultancy).
Management Commentary
Dermot Smurfit, CEO of GAN commented:
“Including Michigan’s population, 70 million Americans now enjoy laws enabling Internet gambling in their State. One year ago, Michigan passed legislation to regulate Internet gambling only for the former Governor to refuse to sign that bill into law. Yesterday, Governor Gretchen Whitmer signed HB 4311, and Michigan is now America’s 13th State to regulate Internet gambling and, more importantly, the seventh State to regulate in 2019 alone. This reinforces our belief that the regulatory cycle for Internet gambling in the US will continue at a rapid pace into 2020 and beyond. This also signals States’ increased appetite for enabling Internet casino gaming, as opposed to just Internet sports betting, in order to logically maximize the incremental State tax opportunity. GAN is the only fully licensed B2B-only platform vendor operating in New Jersey, Pennsylvania and Indiana with the requisite technical expertise and ‘day one’ experience in multiple US Internet gambling markets to credibly serve one or more of Michigan’s 26 land-based casinos.”
About GAN Plc
GAN is a leading business-to-business (“B2B”) supplier of internet gambling software-as-a-service solutions (“SaaS”) to the US land-based casino industry. The Company has developed a proprietary internet gambling enterprise software system, GameSTACK™, which it licenses principally to land-based US casino operators as a turnkey technology solution for regulated real-money internet gambling, encompassing internet gaming, internet sports gaming and virtual Simulated Gaming.
GAN is listed on the London Stock Exchange (LSE: GAN).
For more information please visit www.GAN.com.
Contacts
For further information:
GAN
Jack Wielebinski
Head of Investor Relations
+1 214 799 4660
jwielebinski@GAN.com
US Investors: The Equity Group
Adam Prior
aprior@equityny.com
+1 212 371 8660
UK & Ireland Investors: Newgate Communications
Adam Lloyd
Giles Croot
GAN@Newgatecomms.com
+44 (0) 20 3757 6880
Davy (Nominated Adviser and Joint Broker)
John Frain / Barry Murphy
+353 1 679 6363
Liberum (Joint Broker)
Neil Patel / Cameron Duncan
+44 (0) 20 3100 2000