Game Account Network Plc is cleaning its balance sheets, and gaining more funds. GAN has boosted earnings for the year, which will help their expansion into the US sports betting sector. The details of GAN’s recent financial boost was provided in a disclosure to the London Stock Exchange. They announced the raising of $10.05 million using ordinary shares. The reason behind the streamlining of accounts is regarding the US sports law.
The sports betting law change in the US means companies can start to offer sports book, perhaps even online. The Federal government stopped companies from offering sportsbook options outside of Nevada. However, the recent US Supreme Court ruling is stopping the law from banning operators from offering sports wagers. It is now back in the hands of the individual states to decide if they will allow companies to offer sportsbook or continue to keep it out of citizens hands.
GAN wants to be one of the first sportsbooks available online if their money raising is any indication. By raising money for the entry into the US, GAN created a subscription of shares, and they will provide 85.05 million ordinary shares for people to purchase.
Dermot Smurfit, CEO of the company, stated the capital would help consolidate the US position and help gain revenue that will help in the Internet gaming and sportsbook industry. The hope is to gain access to New Jersey and Pennsylvania for sports betting.
New Jersey and Sports Betting
New Jersey is the state that pushed the hardest to get sports betting legalized from the federal standpoint. They have wanted to offer sports betting like Nevada for several years, and finally, they can go through with their bill of approval for the state to allow and regulate the industry.
The regulations they will put in place is why Game Account Network will begin with New Jersey and then see what happens in other states. GAN stated they are looking to expand their software engineering resources to provide better services to their US clients like WinStar.com. The UK listed company is also looking at repaying a $2.68 million loan to get to a debt-free situation.
Many of the other gambling operators are also trying to get a position in the US sports betting industry, which makes it competitive and important to act quickly. Some places are hoping that daily fantasy sports will also be able to expand.