Market Overview

This Small-Cap Stock Just Ripped 20% Higher On New Online Gambling Deal

This Small-Cap Stock Just Ripped 20% Higher On New Online Gambling Deal

Gan Ltd (NASDAQ: GAN) skyrocketed 20% Thursday morning amid news the company brought on Codrish Gaming Group as a new client.

The two organizations have teamed up for the creation of a new "PlayLive!" branded internet gambling business in Pennsylvania.

What To Know About Gan

Gan's core business centers around a subscription revenue model. Its software allows it to take a piece of the action on every bet or gamble for the gaming companies that it works for. Its most notable client is FanDuel, an international competitor to DraftKings (NASDAQ: DKNG).

Just Wednesday, Benzinga reported on the stock's breakout prospects.

"Offline casino and sportsbook platforms seeking to migrate their brands to online and mobile gaming offerings will find themselves in need of specialized technology, marketing and ops to navigate complex state-specific compliance standards," Chris Camillo, founder of TickerTags and host of Dumb Money LIVE, told Benzinga, "not to mention combating player fraud while competing for new player activation against fierce and deep-pocketed competition."

Want More Trading Ideas?

The new deal for Gan will help further its technological reach in establishing usable gambling software. As online betting becomes more legal and popular, the company's trend towards powering these sorts of platforms may only go upward.

To receive more great trading ideas from the best minds in the market, check out the Benzinga Options Boot Camp taking place Friday, May 29 at 9:10 a.m. EST (and preceded by Benzinga's PreMarket Prep at 8 a.m. EST).


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