GAN, a gaming software firm that is headed by Dermot Smurfit Jr., has raised $7½ Million as it continues with its expansion in the United State market.
The money has been collected on the back of the United State’s Supreme Court ruling which reversed a federal law that restricted sports betting since 1992.
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The US Supreme Court Ruling
As reported last week, the US Supreme Court struck down a 26 years federal law that effectively outlawed all commercial sports wagering in most states, opening the doors to legalizing the predicted $150 billion in unlawful betters on amateur and professional sports that Americans generate every year.
The ruling seems certain to lead to profound changes to the country’s relationship with sports betting. Gamblers will no longer be driven into the black market to utilize offshore betting operations or even illicit bookies.
Placing a wager will be done on phones, tablets, and other mobile gadgets, endorsed and fueled by the sports officials and lawmakers who opposed it for almost 3 decades.
The ruling is expected to results in the liberalization of the United States wagering laws.
Increase in Engineering Resources
In a statement, GAN stated that it intends to use the money, which was raised via a share issue to “considerably” expand its “engineering resources” to offer better service to its established US punters, launch new services and get new customers in the US.
The funds will also be used to settle a $2 Million loan note that was issued in April 2017 “for strengthening the firm’s balance sheet.” The company will now be free of debts and capitalized to the level the directors believe “is reasonably needed to serve major multi-state and multi-property casino groups in the United States of America.”
The chief executive of GAN, Dermot Smurfit, said that, “This strategic capital raising exercise 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.”
GAN is expected to continue to get more customers in the US as the market opens up in the future.
Enlarged Shares of GAN
The highly over-subscribed share issue of 15 million new ordinary shares of $0.01 each had an issue of 50p per/share. The subscription shares represent about 17.6 percent of the expanded issues share capital of the company. Once the subscription is completed, the companies enlarged issued share capital will stand at 85,051,924 ordinary shares.
Other Companies Expanding
Last week on Tuesday, Paddy Power Betfair market valuation increase by over $400 million after it confirmed that it was negotiating with America’s FanDuel to merge its US business in order to take advantage of the new betting laws.
The Dublin-based betting company stated that a merger with FanDuel would “form a combined business that would target the prospective United State’s sports wagering market”. The firm expects to get more reward by engaging in business partnerships with like-minded firms.
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