Software and services supplier GAN has signed a long-term deal with FanDuel to roll out internet casino and account services for online spots betting in Pennsylvania and West Virginia, adding to existing services provided since 2013 in New Jersey.
The expended contract represents a material increase in the value of the partnership to GAN across revenue share, professional services and patent licensing fees.
As part of the expansion, FanDuel has licensed GAN's US patent. The patented technology allows land-based casino patrons enrolled in on-property loyalty programmes to link existing loyalty cards to internet gambling accounts and receive loyalty points in exchange for online gambling.
Linking of patrons' loyalty cards is proven to greatly enhance online engagement by US casino patrons, as well as substantially increasing lifetime value realised online through increased monetisation and retention.
The belief is that the recognition of the US patent significantly underpins GAN's intangible asset value and could potentially lead to further client partnerships and US patent licensing revenue opportunities.
Dermot Smurfit, CEO of GAN, said: "The contract extension combined with US patent licensing represents a significant milestone in GAN's US evolution and reinforces our view that in the heavily regulated US online gambling market, effective and compliant 'platforms' are a premium component of the supply chain rather than a commodity.
“GAN is therefore very well placed to capitalise on the growth in US online gambling markets in terms of new operator clients, new states and underlying growth momentum."