Online gambling technology company GAN is set to delist from the Euronext Growth market in Dublin this coming week after recent shareholder approval, the Sunday Times reports.
Founded in 2002, GAN develops and supplies Internet gaming and betting software, services, and content to B2B clients operating across Europe and the United States. The company says has seen a more than a 100% growth in revenue since the liberalization of sports betting in the US and the legalization of the practice in New Jersey and multiple other states.
GAN will quit trading its shares on the Dublin market from 7am local time on Wednesday. The company floated on Euronext Growth in November 2013.
Commenting on their decision to delist from the Irish market, company CEO Dermoot Smurfit said that there “was no trading going on. Zero.” The executive added that floating on that market “was a waste of time and energy and administrative overhead.” Mr. Smurfit owns 10.4% of company shares.
GAN shareholders approved the proposed delisting at the iGaming supplier’s annual meeting that took place in London last week.
Strategic Review
News about GAN ceasing trading in Dublin arrive a few months after the company announced that it has launched a strategic review of its options that could result in a sale of the business or its listing in the US.
GAN has tapped Union Gaming as its financial adviser to assist with the review. The company said back in March when news about its review first emerged that it was not in discussions with any third parties interested to buy it, but was keeping its eyes open for opportunities that might arise.
Mr. Smurfit pointed out that the B2B gaming technology supplier is continuing the review of its options. The executive went on to say that he himself was “persuaded by the option of getting GAN equity listed in the US, where there is a much higher ceiling in valuations for enterprise software companies.”
GAN and US Sports Betting
GAN went live in New Jersey’s online betting market in September 2018 or three months after the state legalized the practice within its borders. Mr. Smurfit said during the company’s annual general meeting last week that GAN has been “firmly focused on taking advantage of the incremental US Internet sports betting opportunity” and that since the start of regulated betting operations, their clients’ revenues have increased substantially.
The executive added that 2018 was a pivotal year for the tech provider and that he believes “2019 will be another year of tremendous operational and financial progress” that will, too, be driven by the nascent US sports betting industry, which is poised to grow significantly with the legalization of wagering in Montana, Indiana, Iowa, Tennessee, and Illinois since the beginning of the year.
GAN has partnered Parx Casino in Pennsylvania for the launch of Internet gambling and has extended its relationship with daily fantasy sports turned sports betting operator FanDuel to have its platform deployed in selected US states.
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