Market Overview

GAN to Deliver Sports Betting for Parx Casino via Its Award-Winning Platform

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Multiyear partnership extension includes delivery of Sports betting
in both Retail and Online channels for Pennsylvania's largest casino, a
material increase in revenue opportunity

GAN plc ("GAN" or the "Company"), an award-winning developer and
supplier of enterprise-level B2B Internet gaming software, services and
online gaming content in the United States, today announces that GAN and
Greenwood Gaming & Entertainment, Inc. trading as ‘Parx Casino' ("Parx
Casino") have executed a material contract to offer Sports betting in
both the retail and online channels in the Commonwealth of Pennsylvania.
Parx Casino's nominated third party sports betting application software
provider will now be integrated by GAN with launch expected in H2 2018.

On July 16, 2018 GAN announced that Parx Casino had filed a petition
with the Pennsylvania Gaming Control Board ("PGCB") confirming Parx
Casino's intention to launch Internet gaming online in the State of
Pennsylvania and identifying GAN as their enterprise software Platform
provider.

Highlights

  • GAN will participate in the incremental Sports betting revenues
    generated both in the Retail channel (i.e. on-property within the
    casino) and in the Online channel.
  • Multi-year contract extension secured, proving the strategic merit of
    developing Simulated Gaming with US casino operators in advance of
    real money intra-State regulation.
  • Pennsylvanian regulated Retail Sports
    betting is forecast to generate in excess of $100m1 in
    gross win in the first 12months and Internet
    Sports
    betting is forecast to generate a further $189m2
    in the same period, in addition to the Pennsylvanian regulated Internet
    Gaming
    market forecast to generate $200m3 in gross
    gaming revenue online during the first twelve months of operation.
  • Parx owns and operates the #1 land-based casino property in
    Pennsylvania located a short distance from Philadelphia,
    Pennsylvania's largest City. In the most recent fiscal year ended June
    30, 2018 Parx Casino generated $570m from slot machines and table
    games on-property representing a 18% share of the Pennsylvania's
    $3.2bn gaming market.
  • GAN's US-patented technology will enable Parx Casino patrons enrolled
    in the on-property loyalty program, to sign up online and instantly
    link their reward cards to their online account permitting those
    guests to trade in their reward points earned from on-property gaming
    for cash online and/or to earn rewards points from Internet gaming
    and/or sports betting, to be subsequently redeemed on-property.

Management Commentary

Jeff Berman, Chief Commercial Officer of GAN commented:

"Following the execution of this extension and amendment, GAN now
offers clients a Platform equipped with multiple options for integrated
Sports betting to be launched seamlessly alongside GAN's market-leading
Internet casino product. We welcome the opportunity to deliver Sports
betting in the retail channel, as well as online, through GAN's unique
Platform containing patented technology."

John Dixon, CTO of Greenwood Gaming & Entertainment, Inc commented:

"GAN has ably demonstrated it abilities with both its overall
Platform and its integration capability for existing major clients. By
leveraging GAN's Platform, Parx Casino will have the opportunity to
launch retail and online Regulated Sports betting together with online
Gaming in Pennsylvania later this year, subject to the regulatory
approval of the PGCB."

Notes

1 US Industry analyst Chris Grove of Eilers & Krejcik Gaming, LLC July
28, 2018

2 Regulus Partners, an International gambling advisory group June 18,
2018

3 Eilers & Krejcik Gaming, LLC | ‘Pennsylvania Gambling Expansion –
Overview and Analysis' November 8, 2017

Frequently Asked Questions (FAQ's)

  • For investors and Industry analysts: The core of a "Platform" from
    both a technical and regulatory standpoint is the Player Account
    Management System i.e. where highly sensitive customer and player
    activity data is stored and processed. Other elements of Platform can
    include a sportsbook transaction engine, gaming content integrations,
    payment services, marketing services, trading services and other
    ancillary activities. However, the core functionality to describe B2B
    systems and services as a 'Platform' is the Player Account Management
    System. This is also the layer of B2B activity which tends to require
    regulatory approval as a 'Platform' since it is the focal point of
    data and player security. Therefore, without the Player Account
    Management System, a service provider might be offering very valuable
    B2B functionality but not in the strictest sense a 'Platform' (source:
    Regulus Partners
    ).
  • Pennsylvania's population of 12.8m is +42% larger than New Jersey's
    population of 8.9m.
  • There are currently twelve (12) land-based casino properties in
    Pennsylvania which together generated $3.2bn in land-based gross
    gaming revenue in fiscal year 2017/18 ending June 30, 2018.
  • Internet casino gaming in the neighbouring State of New Jersey is a
    fast-growing market which generated $221m in Gross Gaming Revenue in
    CY2017 (+30% Year on Year) and is anticipated to grow +20% Year on
    Year to ~$266m in CY2018E.
  • Patent 8,821,296 was issued to GAN plc in September 2014 and governs
    the automated authentication, card linkage and intra-system messaging
    between the on-property Casino Management System and GAN's Internet
    gaming system. Already proven for Simulated Gaming, the launch of the
    real money Internet casino gaming for Parx Casino is anticipated to
    generate new on-property visitation by Internet-first players as well
    as increase visitation rates among patrons who first engage
    on-property with Parx Casino then subsequently play online from home,
    accumulating reward points from online play.
  • GAN has licensed its US Patent fourteen (14) times to major US casino
    operators and Parx Casino is the third land-based casino operator to
    license the Patent for real money Online Gaming following the
    licensing & services agreements between GAN and Greenwood Gaming &
    Entertainment, Inc. announced November 2014; MDDC (The Borgata)
    announced December 2016; and Ocean Resort Casino announced July 2018.
  • The Federal ban on sports betting enshrined within Professional and
    Amateur Sports Protection Act 1992 ("PASPA") was repealed by the
    Supreme Court of the United States on May 14, 2018 permitting
    individual US States to pass their own sports betting laws.
  • Pennsylvania passed legislation bill HB 271 on October 26, 2017
    (signed into law on October 30, 2017) enabling land-based casinos in
    the State of Pennsylvania to launch real money Internet gaming and
    (subject to the repeal of PASPA) Internet sports betting.

GAN | Overview

GAN is a leading B2B supplier of Internet gaming enterprise
software-as-a-service solutions to the US land-based casino Industry.
GAN is listed on the ESM Market of the Irish Stock Exchange and the AIM
Market of the London Stock Exchange under the ticker: GAN

The Company has developed an Internet gaming enterprise software system,
GameSTACK™, which it licenses principally to land-based US casino
operators as a turnkey technology solution for both regulated real-money
and/or virtual Simulated Gaming. GAN has fourteen (14) casino operators
as clients of Simulated Gaming coast-to-coast across the US and
Internationally; two (2) clients of real money Regulated Gaming in New
Jersey; one (1) client of real money Regulated Gaming in Pennsylvania
and ten (10) clients of real money Regulated Gaming in Europe.

The Internet Gaming System, developed in London under a UK Gambling
Commission license, is certified to the highest technical standards
currently required by gaming regulators. In January 2018 GAN announced a
strategic partnership with SBTECH, a leading European B2B sports betting
technology provider. In April 2017 GAN was granted a Casino Service
Industry Enterprise license by the New Jersey Division of Gaming
Enforcement being GAN's first privileged gaming license in the United
States. In May 2018, the US Supreme Court repealed PASPA and GAN
confirmed the H2 launch of sports betting for US clients integrated into
GAN's enterprise software platform.

For more information please visit www.GAN.com

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