B2B online casino supplier GAN — which operates in the New Jersey market — announced on Monday that it entered into a strategic relationship with SBTECH to offer real money sports betting via its platform. SBTECH is a leading European B2B provider of sports wagering technology.
Both that and the GAN/SBTECH deal are positioning the companies in the event that New Jersey wins its US Supreme Court case. A victory for New Jersey could mean the federal sports betting ban (PASPA) is struck down, and a variety of states could move forward with legal sports betting as soon as this spring.
What we know about GAN and SBTECH
The GAN/SBTECH deal is aimed directly at the potential in the US for sports betting, with SBTECH expected to provide wagering via both online and retail channels.
Here’s GAN CEO Dermot Smurfit on the partnership:
“GAN has been asked by several Clients to review, procure and support the delivery of a sports betting solution both online and in the on-property retail channel in the event PASPA is overturned. We have conducted a lengthy diligence process in Europe to identify a preferred sports betting partner based on their technical capability, US licensing suitability, ability to integrate seamlessly with GAN’s enterprise software platform and the sophistication of their managed sports services. We are delighted to announce this strategic relationship with SBTECH.”
And here’s SBTECH CEO Richard Carter:
This partnership is logical for SBTECH and permits SBTECH to rapidly introduce its sports betting technology and services to a wide range of US casinos with a view to being the first to settle a US sports bet online and on-property in States such as New Jersey and Pennsylvania, in close collaboration with GAN.”
So what does this mean in the US in the short term?
There are two very immediate impacts for the potential US market.
GAN also powered the social casino for the unopened TEN Atlantic City (the former Revel). However, it’s not yet clear if that deal will extend to the property’s new owners, which are reopening it as Ocean Resort Casino. The owner already said he intended to put a sportsbook at the resort.
It also has ramifications for Pennsylvania, which legalized both online casinos and online sports betting in the fall of last year. PA’s Parx Casino has an existing relationship with GAN for a social casino, a deal that at last check extended to online gambling in PA, as well.
What does this mean in the US in the long term?
Those are just two quick entry points into the US market for the GAN/SBTECH product. That early mover status should position them to be providers in other states.
On top of that, in April of last year, the NJ Department of Gaming Enforcement granted GAN a “Casino Service Industry Enterprise” license. That designation should also help pave the way for GAN in jurisdictions that legalize online casinos, sportsbooks, or both.
GAN already has relationships with a number of other casinos for social casino gaming. Those include deals in states that could move forward on sports betting in the near future, like Maryland (Maryland Live! Casino) and New York (Empire City Casino).