GAN Has Acquired Ainsworth in Pursuit of US Expansion

GAN, leading gaming, and sports betting provider, has acquired Ainsworth Game Technology Limited, gaining exclusive rights over its portfolio, in pursuit of expansion in the US.

GAN Has Exclusive Rights of Ainsworth’s 70 Unique Games

GAN Limited, a leading gaming and sports betting provider, has announced that it has reached an agreement with Ainsworth Game Technology Limited (ASX: AGI), an Australian gaming supplier, gaining exclusive rights to all of the latter’s 70 unique online games.

As part of its expansion plans, GAN intends to begin with the online content licensing fees for Ainsworth’s existing New Jersey operations and move on to Michigan and Pennsylvania this year. Ainsworth launched its slots in New Jersey with Rush Street Interactive, bringing its rich portfolio to the state on RSI’s PlaySugarHouse.com.

This deal is part of GAN’s acquisition strategy, increasing its rate on iGaming B2B gross operator revenue. The company also enhances its share in revenues from B2C Operators who are not from its client base.

Ainsworth, an industry leader with land-based casino games retailed across the US, will gain GAN as a long-term partner with an impressive distribution network in the country. Ainsworth will focus primarily on increasing its online portfolio and upgrade its library with an additional 110 games. The company will provide its online casino gaming portfolio only to GAN and Super RGS in the US.

Gan CCO Jeff Berman said that this agreement is an important milestone for the company moving forward to build a leading portfolio in the US and become exclusive providers of premier content in the country. Ainsworth has built a global reputation for providing outstanding online and land-based content of casino games.

Ainsworth, General Manager – Online, Jason Lim said that the deal is proof of their industry-leading collection of slot games and the importance of exclusive gaming content. He stated that players are thrilled by the unique experience of Ainsworth’s immersive games such as Pan Chang, Kanga Cash, and QuickSpin. Lim said that the company is happy to team up with GAN and solidify its positions in the gaming industry.

GAN Has Announced Its First Quarter 2021 Revenue Report

GAN has announced its Q1 2021 report, recording a 263% top-line growth year-over-year. According to the company’s CEO, Dermot Smurfit, this is the result of both organic growth and the Coolbet acquisition.

GAN has reported total revenues of $27.8 million, with $14.3 million, from Coolbet’s acquisition to its B2C segment. It has reported a $5.8 million growth of its B2B segment, a 263% growth compared to Q12020. GAN closed its acquisition of Coolbet at the beginning of the year, intending to further develop its sports betting technology for the US. The company’s B2B segment includes Real money Internet Gaming (RMiG) and Simulated gaming (SIM).

GAN recorded a revenue increase by 76% from its B2B segment with 13.5 million, led by RMiG’s 68% increase ($10.5 million) and SIM’s 114% increase ($3.0 million). The company recorded a segment gross profit increase of 220%, with $19.1 million versus $6.0 million in Q12020. GAN’s net loss of $4.5 million was primarily due to amortization related to Coolbet’s acquisitions ($2.9 million) and increased share-based compensation ($1.2 million).

Adjusted EBITDA’s decrease of $1.7 million versus $2.5 million was due to more regulatory requirements and expansion costs.

GAN’s decrease in cash for Q1 of $52.2 million, compared to $152.7 million on December 31, 2020, is due to the payment for Coolbet’s acquisition ($92.4 million) in January 2021.