Gan Share Discussion Threads

[cumnor] 04/8/2018 23:11

Irish Independent re Paddy Power Boyd deal.
hxxps://independent.ie/business/world/paddy-power-continues-us-drive-with-deal-37183352.html



For a tiny company off the radar but with tentacles in several pies-the nuts and bolts of some of these these deals-the tiny incremental value from each could quickly catapult GAN into a different league as sports betting revenues exponentially grow-they will for a start-across the US.

[noujay] 04/8/2018 10:59

I'd like their market cap for this one though!

[shaker44] 04/8/2018 10:18

certainly seem more dynamic than 888 team

[noujay] 04/8/2018 09:04

It's been a very muted week if only in volume terms but the more the newsflow continues in terms of the sector in the US the more it seems that this small firm is very neatly positioned.

[rivaldo] 03/8/2018 23:43

Cheers cottoner. That should bring in fresh interest on Monday.

Amazing that it took almost the whole day before the market started to "cotton" on to this morning's news.

[cumnor] 03/8/2018 22:16

Nice, Cottoner. Thanks.

[cottoner] 03/8/2018 22:14

Very nice mention in the Daily Mail's Market Report



Gambling group Paddy Power Betfair was trading head and shoulders above its troubled rival William Hill, as it announced a move into the increasingly de-regulated US sports betting and online casino markets.

Paddy Power’s fantasy sports league division Fanduel shook on an agreement with US firm Boyd Gaming. Fanduel would gain access to a huge established network of gamblers across the pond, while Boyd would gain sports betting technology.

Investors were in the money as shares climbed 0.7 per cent, or 60p, to 8140p. But the deal also had more far-reaching implications.

AIM-listed online gaming technology company GAN announced earlier this year it was working with Fanduel, and yesterday’s announcement means it too has access to all of Boyd’s business.

The implications for GAN were noticed by a few in the market, as shares rose 3.7 per cent, or 2.5p, to 70p.

[trentendboy] 03/8/2018 18:07

Very good analysis

[noujay] 03/8/2018 17:51

Interesting end of week analysis as ever from Regulus. GAN mentioned hence the share:It has been a very busy week of deal-making, launches and planning in the US, as well as the Q2 reporting season. The biggest deal from a financial perspective was GVC-MGM, though 'access partner' Boyd rapidly demonstrated it was not a one-partner kind of business. Stars has extended its NJ partnership with Resorts to cover sportsbetting. DraftKing's has 'soft launched' the first mobile sports product in NJ. PPB has given a 4% equity share in FanDuel to Boyd for an access agreement not dissimilar to MGM's. Scientific Games won Caesars for NJ and Mississippi, where William Hill will also soon launch, along with a NJ mobile product and a partnership in WV. MGM has also done a deal with the NBA on rights. But what does this frenetic activity tell us about how the market is shaping up?Access is key – sort ofSo far all the major online gambling states in the US have required landbased (or lottery) incumbency for access, and this is likely to be a reasonable working assumption for the majority of forthcoming states. That is why we did not think much to the MGM-GVC deal (heavily Vegas-led) without Boyd and speculated that Boyd might not be fully locked in. It now seems that was more prescient that we realised, with Boyd doing a deal with PPB within days - and one which involves equity – arguably therefore a tighter relationship than with MGM-GVC. Two online providers consequently have access to pretty much the same 15 states, but whereas PPB (powered by GAN and IGT in the US) has existing online customers in them as well as Boyd access (FanDuel, TVG), GVC only has the former – and not (as perhaps some hoped earlier in the week), uniquely. However, Boyd's choice of multiple partners demonstrates another broad rule of thumb: where a state allows skins, then access is largely commoditised. We would therefore question the real strategic value of 'access deals' (beyond convenience) that are not both broadly based and deeply embedded (GVC-MGM is the latter, but not the former, in our view). Access to sports data is critical to betting, especially in-play. With 'integrity fees' less certain, MGM's deal with the NBA for official non-exclusive data access and brand partnership takes on an interesting light. The value is likely to be totemic (reportedly three years for US$25m) as it is almost impossible to base a figure on anything fundamental (especially given MGM's relative lack of exposure to sportsbetting), but it is at least commercial rather than legislative. What MGM really gets for this is unclear (beyond sponsorship and brand promotion), as is the extent to which data (rather than picture) rights can be locked down in jurisdictions which are relatively unfriendly to IP claims. US gambling companies that work closely with sports will undoubtedly gain a number of (often hard to value) advantages, as they do elsewhere in the world – what might soon be tested (commercially and legally) is what happens to those companies which choose to swerve that particular cost but offer a compelling product anyway... Technology is key as wellSo far, technology solutions have been cobbled together in order to achieve 'first' milestones and the user experience remains rather dated (and/or limited). This should start to change with mobile launches in NJ. It also really needs to change with retail development elsewhere than Nevada. While we fully accept that Nevada landbased sportsbooks are somewhat underwhelming from a user experience perspective, we have not yet seen innovations in either the operator or supply chain level that will significantly move the dial from the c. 1% GGR that Nevada achieves (ex mobile and OTB). Being first is great, as is validating that there is pent up demand (although that was obvious), but the US needs to invent an entirely new retail betting experience if the market is going to deliver anything like the promise hoped of it (excluding the few states that allow relatively unfettered online).We will be blogging on this key theme later in August. Is there any first mover advantage?We hear a lot about first mover advantage and there is a clear hope that many of these deals will have significant long-term repercussions for their protagonists. First mover advantage definitely applies in the very early days of any market development from a purely market share point of view (fairly obviously). It might also apply (more lastingly) in a licensing environment that severely restricts new entrants. But first usually means cobbled together, learning on the job, and managing a meandering organic development that builds technical debt often faster than it builds sustainable value. This also applies to technology / JV partners – it is impossible to see who his holding the best cards when we still aren't sure exactly what game is about to be played. We therefore see flexibility (throughout organisations and technology) as more important than 'locking in' early scale or vaguely parallel experiences/skill-sets at this stage. In practically every market, it is the best product that wins out, meaning the ability to understand the customer and effectively deploy R&D will be the key driver of success (within regulatory constraints), in our view. Therefore, we believe that despite a flurry of activity, the US sports betting market is still wide open to invite winners and losers in every participating state – even Nevada... PS – lawmakers in the state of Massachusetts demonstrated how seriously they take the state's betting sector this week by accidentally making racing and betting at its three racecourses and simulcast centres illegal, after forgetting the final procedural vote on a licence renewal before their summer recess. Stories such as these are worth remembering when the industry gets caught up in a sense of its own destiny... (state congress and the governor fixed the problem in informal session later in the week – just in time for this weekend's race meeting)

[mip55] 03/8/2018 09:06

Two casinos owned by MGM Resorts booked their first sports bets in Mississippi on August 1. Additional casinos owned by other properties are expected to offer sports betting before the college and pro football seasons begin, too.

[noujay] 03/8/2018 08:43

I think Hills need the new partners as at the moment they look lost

[noujay] 03/8/2018 08:40

Does PPBF qualify?!

[trentendboy] 03/8/2018 08:30

Hills are not hanging about.Race is on GAN need big boy partners to avoid being run over

[noujay] 03/8/2018 08:28

Certainly expect next announcement to be on Mississippi.Fanduel deal must also have some benefit - if our tech is integrated to theirs

[rimau1] 03/8/2018 07:58

Mississippi next? WMH announce partnerships today with 11 casinos for sports betting

[cottoner] 03/8/2018 07:44

Today's PPB RNS wrt FanDuel and Boyd Gaming must be a further positive for GAN.

Rivaldo , you beat me this time. :-)

[rivaldo] 03/8/2018 07:43

News today - Fanduel in new partnership with Boyd Gaming re US sports betting and casinos:



"Paddy Power Betfair plc (the "Group")

Agreement with Boyd Gaming

The Group today announces that its subsidiary, FanDuel Group, has entered into an agreement with Boyd Gaming to co-operate in the U.S. sport betting and online casino markets. Under the terms of the agreement, subject to favourable legislation and regulatory approvals, FanDuel will gain market access for its sports book and online gaming products in several states and will provide Boyd Gaming with technology and related services to operate Boyd Gaming-branded mobile and online sports betting and gaming services, in those states.

This agreement will cover all states where Boyd Gaming currently holds gaming licenses, excluding Nevada, and any states in which it acquires a gaming license or market access in the future, including under Boyd Gaming's recently announced market-access agreement with MGM Resorts International.

This agreement, along with FanDuel's existing market access deals in New Jersey, New York and West Virginia, means it will potentially have access to 15 states nationwide.

As part of the transaction, Boyd Gaming will also take a 4% equity stake in FanDuel Group and have an option to purchase a further 1% stake."

[noujay] 02/8/2018 22:11

There definitely is a bit of shuffling going on one way or another and I don't take it as negative no reason to.Looking forward to more newsflow as Mississippi etc go live and also interims and the broader information that should provide

[trentendboy] 02/8/2018 19:53

Why all the shuffling.I wonder.I suspect of this is only necessary because he suspects the future is rosy and wants tax affairs in order to benefit the family the mostVery tempting again at this price

[noujay] 02/8/2018 11:36

It's a different one it seems - registered in Ireland

[alan@bj] 02/8/2018 11:32

I don't understand the Aurum Nominees connection. Companies House records show that enterprise as having been formed in March 2015 and dissolved in September 2016. It makes no difference to us as small shareholders but if anyone has an explanation I'd be interested.

[noujay] 02/8/2018 11:14

Shuffling by Dermot Desmond by the looks of it. An RNS which tells us nothing essentially!