Paddy Power's FanDuel to use Gan software for US betting site
Dermot Smurfit Jr's Gan has announced that it is preparing to launch internet sports betting in New Jersey for FanDuel - a subsidiary of Paddy Power Betfair.
The agreement with Gan will allow FanDuel to integrate its sports betting solution with the Gan platform, which is already certified for iGaming in New Jersey.
FanDuel expects to launch a website and mobile app offering internet sports betting that leverages Gan's software later this year.
Under the terms of the agreement, Gan will receive a single-digit percentage share of the internet sports betting revenues that flow through the platform.
This is in addition to the fees it is being paid by Paddy Power Betfair to integrate the system over the past few months.
"The integration by Gan of our sports betting system is a reflection of Gan's flexible technology platform, 'can-do' attitude and their overall commitment," said FanDuel CEO Matt King.
The agreement comes on the back of a US Supreme Court ruling which earlier this year struck down a federal law that has severely restricted sports betting there since 1992. The decision permits individual US States to pass their own sports betting laws.
New Jersey passed legislation in June enabling land-based casinos and racetrack operators in the state, together with existing internet gaming operators in New Jersey, to launch sports betting in shops and online.
Earlier this month, Paddy Power Betfair completed the combination of its US business with FanDuel, creating the largest online sports destination in the US. Under the terms of the agreement, Paddy Power Betfair will own 61pc of FanDuel, with existing FanDuel investors owning the remaining 39pc.
Paddy Power Betfair's expansion in the US comes at a time of increasing regulation in the UK gambling market. In May this year the Department of Sport in the UK announced proposals to reduce maximum stakes on fixed odds betting terminals from £100 to £2.