Business World

Saturday 23 March 2019

Smurfit Jr's Gan sees shares rise as it wins new US casino market deal

Traders work on the floor of the New York Stock Exchange (NYSE). Photo: Reuters
Traders work on the floor of the New York Stock Exchange (NYSE). Photo: Reuters
Ellie Donnelly

Ellie Donnelly

Shares in Gan were trading up over 7pc in London yesterday on news that the group has made further progress in the US market.

Dermot Smurfit Jr's gaming software company has extended its relationship with Parx Casino to include the State of New Jersey.

This is Gan's third significant customer in the New Jersey market, where the online sports betting and casino markets continue to grow ahead of expectations, according to analysts at Davy Stockbrokers.

Parx's launch date in the state is yet to be announced.

The extension of the relationship follows the announcement last year that Gan would provide similar services to Parx in Pennsylvania, where it operates the largest land-based casino.

Elsewhere, Gan was also conditionally approved as an Interactive Gaming Manufacturer in Pennsylvania earlier this month. This licence is Gan's second gaming licence in the US following the receipt of a full Casino Service Industry Enterprise licence in New Jersey in April 2017.

The cost of licensing was significantly lower than the company's previous expectations. It will pay a fee of $10,000 (€8,900), a fraction of the anticipated $1m (€890,000) licensing cost. "Gan continues to strengthen its position in the fast-emerging US internet sports betting and casino markets," Michael Mitchell, analyst at Davy, said. "These developments combined with "current strong trading conditions" underpin its 2019 guidance," he added.

Earlier this year the group announced it had entered a "material" long-term deal with the FanDuel Group. FanDuel is PaddyPower Betfair's enlarged US business.

In a trading update in January Gan said its outlook remains "highly positive" due to continued and rapid growth in real money internet gambling delivered for clients in both the US and European markets.

Irish Independent

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