GAN, a major B2B technology provider of gaming solutions, decided to put its interim CEO, Seamus McGill, at the helm of the company, this time permanently. As the company’s new CEO, McGill will be tasked with overseeing the looming merger with Sega Sammy.

McGill was named interim CEO in September 2023, succeeding Dermot Smurfit who stepped down from the position. Prior to this appointment, McGill served as chairman of GAN’s board of directors.

GAN’s new CEO boasts robust experience in the tech and gaming sectors and is a suitable appointment to the company’s C-suite. He boasts some 25 years of experience within technology and gambling, having served a variety of influential companies across several countries and continents.

The appointee’s impressive track record includes tenures at Aristocrat, Cyberview Technology, JOINGO, Mikohn Gaming and WMS Gaming.

McGill joined GAN’s board back in April 2014, meaning that he now has a solid decade-long experience with the company’s business. His reliable expertise is sure to provide the company with an edge when it comes to its future endeavors.

In addition to serving as CEO, McGill will continue to be a part of the company’s board of directors.

McGill Thanked the Board for Its Confidence

GAN’s current chair, David Goldberg, welcomed McGill as permanent CEO, saying that his expertise and leadership abilities made him the “most qualified candidate” to be the firm’s new leader.

Seamus has been with the Company since 2014 and has a deep understanding of GAN’s products, customers, and strategy. On behalf of the entire board of directors, I’d like to congratulate Seamus on his appointment and we look forward to his success.

David Goldberg, chair, GAN

McGill commented on his new position, saying that he is honored to be named GAN’s CEO. McGill extended thanks to Goldberg and the rest of the board for their confidence.

Going forward, our focus remains unchanged. We remain committed to a timely closing of our transaction with Sega Sammy to maximize value for all of our stakeholders.

Seamus McGill, CEO, GAN

Speaking of the Sega Sammy merger, the transaction was just approved by GAN’s shareholders, despite an ongoing legal challenge from several disgruntled plaintiffs.

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Zappia, who is a shareholder, is filing the lawsuit on behalf of multiple other investors, bringing a class-action lawsuit against the company. In his complaint, Zappia speaks about being “misled” by the company, including on specific matters that have established a “conflict of interest” and have been perceived as “material omissions.”

Case to Be Viewed ahead of Shareholder Meeting

The trigger is the forthcoming acquisition of GAN’s B2B and B2C divisions for $107.6 million by Sega Sammy, which was pitched last year and will now be decided on during a shareholder meeting on February 13, 2024.

According to Zappia, one of the issues with the negotiations has been a reduction in the tabled offer, which began at $2.51 per share but was finally settled for $1.97, citing the changing nature of business within GAN, and the fact that WynnBet, a North American sports betting operator, had left certain key markets.

Zappia’s case also requests access to several documents that can flesh out further details about the exact negotiations that led to the announcement of the proposed deal on November 7, 2023. Previous discussions had taken place on September 30, 2022, the lawsuit’s text alleges.

Zappia further raises an issue with both the Financing Special Committee and the Merger Special Committee, without enough clarity provided into both to know how the final prices were negotiated and hence the suggested material omissions. The complaint similarly alleges conflicts of interests of board members with the proposed transactions.

GAN Denies Wrongdoing of Any Sort

GAN for its part has already refuted the claims that its current or former members of the Board of Directors have been complicit with underhand practices that have done damage to the business for personal gain. All proceedings surrounding the suggested merger were conducted in line with due process, a SEC filing for GAN says, which details the case.

The Zappia v. Gan ltd. has been filed with the United States District Court for the Southern District of New York in January, as confirmed by the same SEC filing provided by the company. Other defendants named in the case are Seamus McGill, Michael Smurfit, David Goldberg, Susan Bracey, and Eric Green, as per the same filing.

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Notably, Seamus McGill has confirmed that he will be stepping down as chairman of the board and he will be succeeded by David Goldberg in the important position as the holiday season is now set in.

GAN Executes Quick Staff Change at the Top During Holiday Season

McGill’s decision to step down comes after GAN, a B2B technology provider for the iGaming industry, has confirmed that it has entered a definitive agreement to merge with Sega Sammy Creation, owned by Sega Sammy Holdings. McGill will continue to serve as an interim CEO following the departure of Dermot Smurfit.

Besides McGill, the company has also confirmed that Michael Smurfit will step down from the Board of Directors with effect from December 31, 2023. Michael Smurfit added, commenting on his withdrawal as well as the pending merger with Sega Sammy Creation:

With the strategic review concluded, I feel that now is the appropriate time for me to step down from the board of directors. I am fully supportive of the transaction with Sega Sammy Creation and look forward to a timely closing.

Michael Smurfit

Furthermore, GAN has also appointed David D. Ross to the Board of Directors, replacing its ranks. He will be chairman of GAN’s audit committee, and his appointment has been welcomed by Goldenberg, who said that Ross brought more than 35 years of experience in various positions and he has served as both executive and director across the gaming and hospitality sector, giving him a very good background to now be part of GAN.

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The leading international business-to-customer sports betting operator and North American business-to-business provider of real money internet gaming solutions, GAN, announced it achieved a major milestone in Nevada. The company revealed Friday that it secured regulatory approval from the Nevada Gaming Commission, the state governmental agency in charge of regulating gambling activities together with the Nevada Gaming Control Board.

The latest achievement represents a milestone moment for GAN as it enables the company to start a field trial for its GAN Sports betting platform. As a result, the company can conduct trials of its betting platform for customers in Nevada.

Still, to launch its innovative technology in the state, the company requires an additional certification. According to a statement released by GAN, its sports betting platform GAN Sports is prepared with the necessary infrastructure required for its deployment into the regulated gambling market in Nevada. This infrastructure encompasses retail sports betting, as well as mobile applications, the company revealed.

The latest announcement comes after GAN secured a conditional Nevada license earlier this month. The aforementioned license enabled the company to replace the sports betting platform for Red Rock Resorts’ sportsbooks located in Southern Nevada.

The Company Looks Forward to Launching GAN Sports

Seamus McGill, GAN’s chairman and interim CEO, shared his excitement about the latest regulatory approval from the Nevada Gaming Commission. He said that the company is thrilled about this achievement. Moreover, McGill pointed out that GAN anticipates introducing GAN Sports, its innovative sports product, to customers in Nevada soon.

The company’s chairman and interim CEO added: “The Las Vegas Locals market is one of the largest and most recognizable gaming markets in the world, and we are incredibly excited to be entering it.” Finally, McGill explained that Nevada marks the third US state where GAN Sports will launch and predicted that the solution would bring unrivaled experiences to the market.

“We are very pleased and humbled to have received regulatory approval from the State of Nevada to hold a gaming license. We are excited that we will be launching our leading-edge GAN Sports product in Nevada in the next few months.“

Seamus McGill, chairman and interim CEO of GAN

Late last month, McGill was appointed to the role of interim CEO. At the time, GAN confirmed that it accepted the resignation of its then-CEO, Dermot Smurfit. With Smurfit stepping down from his role, McGill filled in the interim CEO position. It is likely that GAN has already initiated a search for a permanent CEO to fill the role.

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The leading North American business-to-business (B2B) technology provider of gaming solutions and international sports betting operator, GAN, announced changes to its senior-level management team. On Wednesday, the company confirmed that its Board of Directors accepted the resignation of Dermot Smurfit from his role as director of the company and its subsidiaries and chief executive officer (CEO).

GAN said that it is currently in the process of evaluating a consulting arrangement for Smurfit who is at present one of its substantial stockholders. In addition to the resignation, the company confirmed the appointment of an interim CEO.

Although the announcement came today, GAN said that Seamus McGill, the current chairman of the Board, will fill in the role of interim CEO as of September 26, 2023. It is yet to be confirmed if the company has already initiated a search for a permanent CEO. Still, McGill represents a strategic appointment for the interim role, considering his solid experience within the technology and gaming industries.

The latest change to GAN’s C-suite comes after early last month, the company released its financial results for the second quarter of the year. Overall, Q2 revenue hit $33.8 million, representing a slight dip when compared to the $35 million result from the corresponding period in 2022. At the time, Smurfit explained that GAN remains optimistic for the upcoming Q3 and Q4.

Interim CEO Brings Solid Experience

Focusing once again on the latest announcement, McGill joined GAN’s Board back in April 2014. In his new role as interim CEO, he brings 25 years of experience within the technology and gaming vertical. McGill’s professional career started with Mikohn Gaming Corporation. Before he moved to the United States, he worked for 3 years in Singapore and 7 years in Japan, allowing him to accumulate skills and experience from those vital markets.

Prior to becoming a part of the Board at GAN, McGill served as the president of the mobile software company, JOINGO. Additionally, his professional tenure includes a chief operating officer role with Aristocrat Technologies for five years. Throughout his extensive career, McGill was also a part of Cyberview Technology as well as WMS Gaming Inc, where he held different senior-level roles.

“On behalf of the entire Board and GAN team, I want to extend our appreciation to Dermot for his commitment to the Company since joining twenty years ago. Under Mr. Smurfit’s leadership, GAN experienced many great accomplishments and reached numerous milestones as a Company.“

Seamus McGill, interim CEO of GAN

Commenting on the topic, McGill thanked Smurfit for his exceptional guidance and dedication to the company over the last two decades. He acknowledged that thanks to the guidance of Smurfit, GAN was able to hit multiple milestones and significantly expand its position. Finally, McGill said that he is honored to assume the responsibilities related to his new role with the company.

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Following its suboptimal performance in Q1, the company posted Q2 revenue of $33.8 million, marking a slight year-on-year decrease from last year’s $35 million.

The company’s B2B revenue plummeted from $14.2 million to $9.9 million because of a decrease in contractual revenue rates. Luckily, the decline in the B2B vertical was offset by an increase in B2C revenue, which increased from $20.8 million in Q2 2022 to $23.9 million in Q2 2023.

The company’s unaudited adjusted EBITDA was $2 million in Q2 2023. This is a noticeable increase from the $1.35 million recorded in Q2 2022.

GAN’s net loss for the period was $18.4 million, a significant year-on-year decline from the $38.3 million the company lost in Q2 2022. Operating expenses for the period were also significantly lower at $32.8 million in Q2 2023 against $62.3 million during the same period last year.

Furthermore, the company reported cash and cash equivalents of $43.4 million as of June 30.

In Q2 2023, GAN’s B2C active customers decreased slightly because of the company’s underperformance in the LATAM region and its decision to leave the Ontarian iGaming market.

In the meantime, the company expanded its presence in the United States, launching its B2B betting technology with WynnBET in six states, namely Arizona, Colorado, Indiana, Louisiana, Tennessee and Virginia. This brings the total number of states where GAN Sports operates to nine.

CEO Smurfit Braces for Improved Performance in H2

GAN’s chief executive officer, Dermot Smurfit, commented on his company’s performance in the second quarter of the year. He praised the execution of the company’s business plan and noted that GAN’s international B2C operations continue to go from strength to strength.

Smurfit also praised the rollout of the company’s GAN Sports division in multiple markets and the progress on the new GameSTACK 2.0 version of the platform. The CEO added that GAN Sports’ presence in nine US states and the company’s international momentum lead him to expect significant improvements in the company’s performance in the upcoming half of the year.

Smurfit also teased that the company has received “indications of interest” from bidders that might seek to acquire a part of GAN or GAN in its entirety. The CEO said that a special committee will evaluate those alternatives.

However, no agreement has been reached as of yet, Smurfit emphasized.

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GAN, a major NA B2B provider of iGaming technology provider and an International B2C operator of online sports betting, has published its Q1 2023 report, highlighting its performance during the three months ended March 31.

GAN reported total revenue of $35.1 million, representing a slight 6% year-on-year decrease. Both the B2B and B2C verticals were impacted by the decline, with the company posting $11.3 million B2B revenue and $23.9 million B2C revenue against $13.1 million and $24.4 million in Q1 2022, respectively.

GAN attributed the B2B decrease to a decrease in the company’s contractual revenue rates with its largest customer. The B2C segment, meanwhile, was negatively impacted by the shifting currency rates and the declining US dollar.

Meanwhile, GAN’s operating expenses increased from $29.9 million in Q1 2022 to $31 million in Q1 2023. Adjusted EBITDA plummeted to $39,000 from $3 million in Q1 2022.

Despite the many negatives, GAN reported a net income of $1.5 million in Q1 2023, far surpassing the $4.5 million net loss it recorded in Q1 2022. This was primarily driven by a gain attributable to an amendment of one of GAN’s Content Licensing Agreements.

GAN also reported $40.8 million in cash as of March 31, 2023, representing a noticeable decline from the $45.9 million in the prior year quarter.

Gan Is Optimistic about the Results

GAN’s CEO, Dermot Smurfit, commented on the matter, saying that the quarterly results are satisfactory in spite of the slight declines across the board. He said that the metrics remain encouraging and that GAN expects its strategy to pay off and improve its profitability in 2023.

According to Smurfit, GAN will now lean into its GAN Sports US subsidiary and will rely on select international B2C markets.

Smurfit noted that GAN is also progressing in its strategic alternatives review and is evaluating the opportunities it has to maximize shareholder value.

Our recent announcement and term loan transaction bolstered our financial position and allowed us to modify the conditions of our term loan, significantly reduce our interest expense, and strengthen our balance sheet.

Dermot Smurfit, CEO, GAN

Smurfit clarified that this transaction should be considered a key step in the broader company review process. According to him, it will allow his team to evaluate the available options from a stronger position.

The CEO concluded that GAN has been pleased with its strategic review so far. He promised that the company will provide updates as the process continues but noted that there is no timetable for its completion.

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North American business-to-business (B2B) technology provider of real money internet gaming solutions and fast-growing international business-to-customer (B2C) betting operator, GAN, released its unaudited financial results outlining the performance of the company during the fourth quarter and 2022. The company posted strong revenue growth for Q4 and 2022, complemented by growth within B2B and B2C segments.

Judging by the recent report, in 2022, GAN’s revenue hit $141.5 million. This result, when compared to the corresponding period in 2021, marked an increase of 14%. The company unveiled that the revenue throughout 2022 was the result of strong growth within its B2C, as well as B2B operations.

The B2B revenue segment last year hit $54 million, up by 19% when compared to 2021. On the other hand, the B2C revenue segment reported $87.5 million, marking another strong increase when compared to the $78.6 million result from the prior year. According to GAN, the outstanding performance of B2C revenue was the result of the strong growth of the company’s Latin American operations.

When it comes to the fourth quarter, GAN enjoyed strong results as well. In Q4, 2022, the company reported total revenue of $36.9 million, representing an increase of 21% when compared to the corresponding period in 2021.

The growth of the revenue from the B2B segment in Q4 was 26%, hitting $14.1 million. That growth was “driven primarily by an increase in platform and content license fee revenue from existing clients and new launches by existing and new customers,” said GAN. Similarly, a strong performance was observed within the B2C segment revenue for the fourth quarter. Overall, that revenue hit $22.8 million, driven by significant growth of 49% of active customers in Latin America.

The Company Confirms Launch of Strategic Review

GAN’s CEO, Dermot Smurfit, pointed out that the company reported strong growth of its B2C KPIs and saw active customers increase by nearly 50% during the fourth quarter. At the same time, he explained that the company closed 2022 with positive momentum after teaming up with WynnBet at Encore Boston Harbor.

That positive momentum continued in 2023, given the recent launch at Encore Boston Harbor, added Smurfit. The CEO said that the launch marked the third GAN Sports client for the US market and reaffirmed the potential of the company’s platform.

“We also ended the year with solid momentum in our B2B sports betting business as we announced our partnership to support WynnBet at Encore Boston Harbor and had a highly successful launch last month.“

Dermot Smurfit, CEO of GAN

Despite the positive results, Smurfit said: “it has become apparent to us that the capital requirements to gain market share for initiatives such as SuperRGS as well as in certain competitive markets for sports betting like Ontario, Canada do not provide a path toward achieving an acceptable ROI in a reasonable period of time.” Consequently, he pointed out that the company decided to “allocate capital away” from such initiatives.

In addition, Smurfit outlined that GAN launched a formal strategic review process of its operations. This process is expected to improve the profitability of the company. Additionally, the strategic review is expected to improve the returns for GAN’s shareholders. Finally, Smurfit said that the company hasn’t planned a deadline for when the strategic review will be completed but vowed that updates on the topic will be provided when necessary.

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