Another is joining the pack! Gambling technology provider GAN is planning to beef up its presence in the US. More precisely, in the sports betting market, where things are about to change very soon. Especially considering the recent repeal of the federal ban on online sports betting. The UK-listed tech company raised over $10m to boost its US market position.
Tech provider to invest in software
In short, GAN raised the stack through an over-subscribed subscription of 15 million ordinary shares. Later on, the tech provider announced the move in a disclosure to the London Stock Exchange. As a matter of fact, GAN’s issued share capital will rise to 85 million shares. Most of the money will serve to increase software engineering resources. GAN wants to provide better services to its existing US clients. The rest, around $2m, will serve to pay off a loan.
This underlines the importance of having no debts. If you want to team up with major US online casinos. Raising the capital serves a simple purpose. “To consolidate US market position. And to capture large incremental revenue opportunities,” said GAN CEO Dermot Smurfit. In essence, he is pointing at the new landscape of the US sports betting market. As that sector is expecting massive changes, if not a revolution.
In the wake of new times
By all means, about 2 weeks ago, the prospects of legal online sports betting in the US exploded. This was down to the US Supreme Court’s decision to repeal the PASPA legal act. In fact, The Professional and Amateur Sports Protection Act of 1992 is now out of the way. That means the ban on online sports betting is gone. And, that changes a lot! In fact, this changes the whole game. And you can bet the industry took notice.
Apart from GAN, others follow suit and try to wade into new territories. Namely, British gambling operator Paddy Power Betfair is about to get a majority in FanDuel. Similarly, rival betting giant William Hill made a move. It claims it already invested millions in preparations for US sports betting. Indeed, the changes in online gaming and betting rules in NJ, PA, and other states are promising. They seem to bring new opportunities for all, but more importantly, to the sport loving online punter!