GAN has appointed interim CEO Seamus McGill as the company’s new permanent chief executive.

McGill first took temporary charge in September 2023 following the resignation of long-serving GAN CEO Dermot Smurfit, who occupied the top job for 13 years.

McGill will remain on the firm’s board of directors, on which he has served since 2014.

He will now be tasked with securing the timely closing of GAN’s acquisition by Sega Sammy, which is set to cost the Japanese gaming giant approximately $108m.

GAN chairman of the board David Goldberg said: “Seamus has the full backing of the board of directors and we are confident that his experience and leadership make him the most qualified candidate to be GAN’s next CEO.

“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,” he added.

McGill – a 72-year-old industry veteran – boasts more than 25 years of experience in gaming and tech, most recently as president of Californian software company JOINGO.

He also spent five years at Aristocrat Technologies as COO and helped orchestrate the sale of Cyberview Technology to IGT while serving as president.

“It’s an honour to be named GAN CEO and I’d like to thank David and the board for their vote of confidence,” added McGill.

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

The majority of GAN shareholders have given their approval for the upcoming acquisition of the firm’s B2B and B2C iGaming assets by Japanese gaming giant Sega Sammy.

In November 2023, GAN announced a $107.6m acquisition agreement with Sega Sammy, setting the company’s value at $1.97 per share.

During a shareholder meeting held yesterday (13 February), over 95% of votes cast were in favour of approving the merger agreement and the merger itself.

Roughly 51% of GAN’s issued ordinary shares as of 2 January, the record date for the meeting, were represented at the gathering.

In addition to greenlighting the merger, shareholders also gave a non-binding advisory approval for the compensation that may be paid or become payable to GAN’s named executive officers in connection with the merger.

The merger’s closure is anticipated to take place in late 2024 or early 2025, pending the fulfillment or waiver of specific closing conditions, including regulatory approval.

If the merger is completed, each GAN ordinary share issued immediately prior to the effective time of the merger will be automatically cancelled and converted into the right to receive $1.97 in cash per share.

Upon completion of the merger, GAN will cease to be a publicly traded company and will become a wholly owned subsidiary of Sega Sammy.

Class action

The shareholder approval comes shortly after Joseph Zappia, chief investment officer of LVW Advisors and a prominent GAN shareholder, filed a class action on behalf of himself and other investors.

Zappia alleged that GAN had misled investors through its proxy statement preceding the shareholder meeting.

The lawsuit outlined several instances where GAN purportedly failed to disclose conflicts of interest and omitted material information.

Among the grievances detailed in the complaint was the allegation that the initial offer was reduced from $2.51 per share to the final $1.97 per share due to concerns surrounding GAN’s business landscape, including the departure of one of GAN’s major B2B clients, WynnBet.

GAN, however, vehemently denied these allegations, asserting its adherence to legal standards and making additional disclosures to mitigate potential legal ramifications.

The lawsuit also questioned the transparency and composition of the committees involved in approving the acquisition, raising concerns about the secretive nature of the Financing Special Committee and the Merger Special Committee.

Moreover, Zappia’s legal team argued that GAN shareholders suffered “irreparable harm” due to the alleged material omissions and demanded a trial by jury to seek appropriate relief, although the exact amount was not specified in the complaint.

GAN has “misled investors” during the Sega Sammy acquisition process, alleges a new class action filed by a prominent investor.

In November 2023, B2B and B2C iGaming business GAN Limited announced it had agreed a $107.6m acquisition agreement with Sega Sammy, valuing the business at $1.97 per share.

Shareholders will meet virtually on 13 February 2024 to decide whether to approve the deal, with a simple majority vote required to do so.

At the time of the agreement, GAN highlighted the concentration of market share in the US B2C space, slower than expected progress in regulated iGaming and key changes to customer contracts as reasons to pursue the sale.

The business concluded that its operating environment was “challenging” without deep capital resources.

“Sega Sammy has those resources and GAN is a strategic complement to their existing gaming portfolio,” said CEO and chairman Seamus McGill.

“We believe this all-cash offer, at a substantial premium to recent trading prices, is the value-maximising path for our shareholders.”

Allegations GAN misled investors in proxy statement

However now Joseph Zappia, chief investment officer of LVW Advisors and a prominent GAN shareholder, has filed a class action on behalf of himself and other investors.

The complaint details several alleged cases where GAN misled its investors in the proxy statement it issued ahead of the shareholder meeting.

This includes several instances of alleged failures to declare conflicts of interest, as well as a number of “material omissions”.

The suit also details how Sega Sammy reduced its initial offer of $2.51 per share, down to its final offer of $1.97. This equated to an enterprise value of $107.6m.

Sega Sammy cited one of GAN’s largest B2B clients, WynnBet, and its eight announced market exits in August 2023.

The Japanese Corporation also highlighted the potential impact of Chilean gaming regulation, which could have negative ramifications for the company’s B2C business.

“GAN and the current and former members of its board of directors named in the action have vigorously denied, and continue to vigorously deny, that they have committed any violation of the law or engaged in any of the wrongful acts that were alleged in the action,” said the business in a 1 February SEC filing.

In the filing, the company made several additional supplemental disclosures.

This was intended “to eliminate the burden and expense of further litigation, to put the claims that were asserted in the action to rest, and to avoid any possible delay in the consummation of the merger.”

Claims in the Zappia suit

The suit makes several claims that GAN intentionally misled investors. These include regarding the size of a previous bidder’s proposal, “Bidder H”.

According to the filing the implied value of Bidder H’s offer was higher than the $1.97 per share final offer, although lower than the initial $2.51 proposal.

The compliant argues this was not disclosed in the proxy statements, representing an effective attempt to mislead investors.

GAN disputed this in its SEC filing arguing this valuation was “highly speculative”. It concluded the implied value “was not clearly superior to other proposals,” including Sega Sammy’s.

Zappia also raised concerned about the secretive nature of the Financing Special Committee and the Merger Special Committee that helped approve the deal, as well as a lack of clarity around which individuals made up these groups.

The suit makes additional allegations, including a failure to declare confidentiality agreements and conflicts of interest.

The complaint does not detail the exact amount it is seeking in relief, but does argue that GAN shareholders have suffered “irreparable harm” as a result of the alleged material omissions.

Zappia’s attorneys are demanding a trial by jury on all claims in the suit.

Betting and gaming platform provider Sportingtech has recruited Tom Ustunel as its new CEO.

Ustunel has worked with Sportingtech for the last two years as a consultant via his First Gen Consulting company, supporting the supplier’s strategic initiatives.

Ustunel’s most recent industry-facing executive role was as chief of gaming operations for US online gaming platform GAN.

Prior to that, he spent nearly seven years at News UK across the publisher’s gambling products, culminating in the role of betting and gaming director as it launched Sun Bingo and Sun Bets.

He also held senior product positions at both Smart Gaming Group and Rank Interactive.

The appointment of Ustunel as CEO has coincided with several internal promotions at Sportingtech as the brand gears up for growth in the Latam region during 2024.

“Sportingtech has been on an incredible trajectory in recent years, and 2023 saw unprecedented success which we are looking to not only replicate, but also build on,” said Ustunel.

“I am thrilled to be working with such a talented team of people across the entire business during what promises to be an exciting time as we look to further cement ourselves as the go-to provider for operators,” he added.

Sportingtech has a head office in Malta, with operational offices in Portugal, the UK, Slovenia and Bulgaria. It also occupies regional offices across Latam.

Earlier this week, it was announced that former Sportingtech MD Bobby Longhurst had left the company to join up with EveryMatrix as chief commercial officer.

November brought a more favourable atmosphere for iGaming companies in the stock market. 

After a challenging September and October, several companies experienced significant boosts in stock value. 

US operator DraftKings took the lead among gambling stocks, GAN soared following an acquisition deal, and Acroud stood out by defying prevailing market trends.

DraftKings

DraftKings emerged as the top performer among operators, witnessing a 38.8% increase in stock value, from $27.6 on 31 October to $38.3 on 30 November.

Over the past six months, DraftKings’ stock rose by 63.7%, marking a stellar run for the company.

Additionally, its year-to-date stock gain stands at a staggering 236.3%.

In Q3 2023, DraftKings generated a 57% year-on-year revenue increase to $790m in Q3 2023 – and overtook FanDuel as the US online gambling market leader by GGR.

November also saw DraftKings hold its virtual investor day and share additional insight. 

CEO Jason Robins said he believes the company had secured the top spot due to a variety of factors, the most important being the development of a market-leading product.

He emphasised the importance of having top-notch technology and affirmed that the operator wouldn’t ease off on development in this area.

He described the DraftKings product as “extremely strong” and said the firm’s competitive differentiation advantage was both “real and sustainable”.

DraftKings revised its full-year revenue guidance to a range of $3.67bn to $3.72bn, up from the earlier guidance of $3.46bn to $3.54bn. 

Looking ahead, the company projected 2024 revenue between $4.5bn and $4.8bn, with anticipated growth in subsequent years.

DraftKings’ long-term forecast also showed promising figures, expecting revenue in the mid-$5bn range for 2025 and a further surge to $7.1bn in 2028.

After a strong showing in Q3, alongside an optimistic outlook for 2024 and beyond, several analysts think DraftKing’s stock is primed for sustained expansion over the long run, despite appearing reasonably priced in the short term.

GAN

In November, GAN took the lead as the best-performing stock in the supplier category, bouncing back from a tough October

The company’s stock value surged by 67.1% throughout the month, a significant turnaround from its position at $0.88 on 31 October to a closing value of $1.47 on 30 November.

GAN’s climb began after 7 November when the supplier confirmed the long-speculated acquisition by Japanese gaming giant Sega Sammy Creation.

This acquisition, at $1.97 per share in cash, reflects a substantial 121% premium over the stock’s closing price on 7 November.

Following this announcement, heavy trading of GAN stock ensued, catapulting its value to $1.66 on 9 November.

GAN interim CEO and chairman Seamus McGill commented: “After a thoughtful review of value creation opportunities available to us, we are pleased to have reached this agreement with SSC. 

“Market share concentration in the US B2C space, a slower than expected adoption of regulated online gaming in the US, along with changes to key customer contracts make the near-term operating environment challenging without ample capital resources. 

“Sega Sammy has those resources and GAN is a strategic complement to their existing gaming portfolio. We believe this all-cash offer, at a substantial premium to recent trading prices, is the value-maximising path for our shareholders.”

However, the acquisition isn’t set to be finalised until December 2024. 

Acroud 

Stockholm-listed Acroud stood out among the affiliates on our watchlist last month. 

While other affiliates experienced share losses—even the widely favoured Better Collective, which dipped nearly 12%—Acroud managed to achieve a 5.4% gain. 

Its value rose from SEK 1.66 on 31 October to SEK 1.75 on 30 November.

Acroud released its Q3 2023 results in November, showcasing both positive and challenging aspects.

The company generated a 48% year-on-year revenue increase to Є9.9m. However, EBITDA (excluding one-off items) dropped by 21% year-on-year to Є1.2m.

On a brighter note, Acroud successfully brought in 72,270 New Depositing Customers (NDCs) for its partners, marking a 114% growth compared to Q3 2022.

CEO Robert Andersson acknowledged the difficulties faced during Q3, citing organisational changes that impacted the company’s performance. 

He highlighted the restructuring of finance departments and a shift to in-house technology adoption to cut costs and streamline operations.

Andersson mentioned that while the results were disappointing, they were anticipated. 

He attributed some of the impact to sports results, specifically noting a negative influence in September due to the success of many favorites. However, he emphasised that underlying Key Performance Indicators (KPIs) continue to exhibit strength.

He expressed confidence that the changes implemented by the company have now settled in Q3, leading to a more stable outlook. 

“Contradictory to the seasons, Acroud is now heading towards brighter times in the last quarter of the year,” Anderson said.  

September’s slump extended into October and showed minimal signs of recovery as major gambling stocks including Bally’s, XLMedia and GAN remained in negative territory.

Bally’s Corporation

Bally’s Corporation experienced a substantial setback, with its stock value plummeting by 30% throughout the month.

The decline was particularly steep, closing at $13.11 on the last trading day of September, and concluding at $9.12 on 31 October.

Looking at a three-month-period, Bally’s decline becomes even more pronounced.

From 31 July to 31 October, the stock value fell from $16.28 to $9.12, reflecting a substantial loss of 44%.

While there’s no single event to point to for the decline, Bally’s decline is not an isolated case.

The broader trend among US casino stocks reveals a general underperformance in recent months, with some entering bear-market territory after dropping more than 20%. 

Between the end of July and the end of October, Caesars Entertainment experienced a decline of 32.4%, dropping from $59.02 to $38.89. 

Similarly, MGM Resorts saw a decrease of 31.2%, falling from $50.77 to $34.92 during the same period.

Las Vegas Sands also registered a decline of 21.9%, falling from $59.81 to $46.73.

Some analysts have linked the recent market decline to macroeconomic conditions, suggesting that investors are worried that the prolonged period of high interest rates might prompt a change in American spending behaviour. 

On 20 September, the US Federal Reserve declared it would maintain interest rates at 5.25%-5.50%, the highest rate in 22 years. 

The Central Bank also forecasted at least one more rate hike this year, with rate cuts expected to commence no earlier than June 2024, a later timeline than initially communicated.

Meanwhile, Bally’s reported its Q3 results on 1 November and despite a 9.4% year-on-year increase in revenue to $632.5m, it reported a consolidated net loss of $61.8m.

The operator also adjusted its full-year revenue guidance to a new range of $2.4bn to $2.5bn, down from the prior estimate of $2.5bn to $2.6bn, while CEO Robeson Reeves revealed that Bally’s is streamlining its operations and reducing its workforce by 300 jobs.

XLMedia

Affiliate group XLMedia continues to feature prominently on our list of biggest losers.

Following a substantial 29% loss in September, the company’s shares are struggling to regain momentum.

In October, the trend persisted with the stock experiencing a further decline of 16.6%.

The share value dropped from £8.75 on 29 September to £7.30 on 31 October, indicating a continued challenge for XLMedia’s stock to recover.

Over the three-month period from 31 July to 31 October, the stock has now incurred a cumulative loss of 33%.

XLMedia has been facing challenges in establishing a strong presence in the US market. 

The release of its H1 2023 results shed light on the struggles.

The company reported a substantial 46.4% year-on-year decrease in US sports betting revenue, plummeting to $16.2m compared to H1 2022’s $30.2m.

This notable swing in North American revenue seems to validate CEO David King’s earlier counsel, emphasising that “growth in the US market will not be linear, with significant spikes generated by periodic state launches”.

GAN 

In the supplier category, GAN experienced a significant decline of 24.1%, dropping from $1.16 on 29 September to $0.88 on 31 October. 

This marks the second consecutive month in which GAN has been featured in our stock market sweep, following a challenging September where its stock declined by 24%.

Over the three-month period from 31 July to 31 October, GAN incurred a substantial loss of 52.9%.

Earlier this year, GAN initiated a comprehensive company-wide strategic review to expedite its path to profitability and enhance its return profile.

During the presentation of GAN’s Q2 2023 results, indications of interest from potential bidders were disclosed.

Between October 6 and October 10, GAN’s stock experienced a 22.7% rise, likely influenced by acquisition rumors circulating at G2E in Las Vegas. 

However, with no official announcement, the stock continued its decline.

Finally, on 8 November, GAN confirmed that Japanese gaming giant Sega Sammy Creation (SCC) had entered into an agreement to acquire the entire GAN business for $107.6m.

Following the announcement, the stock surged to $1.66 on 9 November, reflecting an impressive 88.6% increase.

Sega Sammy Creation (SCC), a Sega Sammy Holdings subsidiary, has struck a deal purchase the entire GAN business for $1.97 per share.

The total is a 121% premium on the $0.89 closing price of GAN shares as of market close on 7 November 2023.

With 44.68 million outstanding shares, the Japanese entertainment company is set to pay a total consideration of approximately $88m for the business.

However, the overall acquisition price is estimated at closer to $107.6m once the outstanding shares, stock options and advisory expenses have all been taken into account.

Sega Sammy was formed by the 2004 merger of the Sega and Sammy corporations. 

Today, the Japanese gaming giant develops video and arcade games, manufactures pachinko terminals, and has a resort business unit. It is best known for creating popular video games like Sonic the Hedgehog.

GAN chairman and interim CEO Seamus McGill said: “After a thoughtful review of value creation opportunities available to us, we are pleased to have reached this agreement with SSC.

“Market share concentration in the US B2C space, a slower than expected adoption of regulated online gaming in the US, along with changes to key customer contracts make the near-term operating environment challenging without ample capital resources.

“Sega Sammy has those resources and GAN is a strategic complement to their existing gaming portfolio. We believe this all-cash offer, at a substantial premium to recent trading prices, is the value-maximising path for our shareholders.”

The deal is subject to approval by GAN shareholders, with a 31 March 2024 deadline for the shareholder meeting. Sega Sammy said it expects to close the deal by December 2024.

Sega Sammy’s planned US expansion

As part of its investment strategy to 2026, Sega Sammy said it intends to invest $660m in gaming.

As such, the business has been identifying and evaluating investment opportunities in iGaming and online sports betting “particularly in the rapidly growing US market”.

Sega Sammy said it intends to enter the iGaming market prior to wider legalisation. At present only six US states allow consumers to gambling on online casino.

The company said it expects more operators to enter the market as states regulate. Sega Sammy said GAN’s technological solutions will be “highly competitive” in this environment.

Sega Sammy also highlighted potential synergies between GAN’s B2B supplier solutions business with its customer base and content development capabilities.

“We decided to proceed with this acquisition because it aligns with our growth strategy and believe that it will greatly contribute to the expansion of our gaming business and gaming portfolio,” said the business.

As part of the deal Sega Sammy will also acquire GAN’s B2C operation, Coolbet, which is active in European and Latam markets and is understood to be the major driver behind the deal.

However, Sega Sammy did not choose to highlight the brand in its investor release outlining the acquisition. Rumours first emerged at G2E this year that Sega was close to a deal for Coolbet.

GAN’s journey with Coolbet

GAN initially acquired Coolbet for a sum of $175.9m in cash and stock in January 2021. 

This strategic acquisition was intended to position GAN as a full-service B2B solutions provider for real-money gaming in the US, while also bolstering its standing as a vertically integrated B2C operator.

However, the integration of the Estonia-headquartered bookmaker into GAN’s operations did not go as planned. 

In 2022, Coolbet founder Jan Svendsen claimed he was “pushed out” of the business post-acquisition.

Svendsen’s concerns led him to scrutinise GAN’s organisational structure, ultimately prompting calls for changes within the company’s board and the removal of CEO Dermot Smurfit.

However, Smurfit only resigned in September 2023 after 13 years as CEO, to be replaced by Seamus McGill on an interim basis.

Turbulent stock market performance

GAN entered the US stock market almost three years ago and faced a turbulent journey during this time. 

The acquisition rumours at G2E led to a 24% surge in share price to $1.24 in October.

Despite this small recovery, the company has experienced a slump in its share price since the summer, which is down 43.2% since early August.

This is a continuation of a prior trend. The stock price exhibited a consistent decline, falling from its peak of over $30 in February 2021 to a low of $0.89 reached at close last night.

Financial challenges

Last year, GAN reported substantial losses of $197.5m, marking a significant increase from the previous year ($30.6m).

A major portion of these losses was attributed to a write-down in the value of Coolbet.

In its annual report, GAN acknowledged that the “market price of our publicly traded shares and resulting market capitalisation of our business has experienced a significant and sustained decline since our acquisition of Coolbet.”

To counter these challenges, the company implemented cost-saving measures, which included staff and cost reductions, renegotiated credit facilities and identified additional sources of capital.

In fact, Sega first became involved in GAN’s operations when it refinanced GAN’s corporate debt in April 2023.

During that time, GAN disclosed that its former lender, Beach Point, had transferred its $30m term loan to Sega. 

GAN also struck an additional deal with Sega to borrow $12m, primarily to cover fees owed to Beach Point and to fulfil general corporate needs.

In Q2 2023, GAN generated total revenue of $33.8m, reflecting a decrease of $1.2m compared to the same period in the previous year.

GAN Limited (GAN), a leading North American B2B technology provider of real money internet gaming solutions and a leading International B2C operator of Internet sports betting, today announced that it has received regulatory approval from the Nevada Gaming Commission.

The approval allows GAN to commence field trial operations of its GAN Sports betting platform with its Nevada customers after the platform is certified and approved.

GAN Sports has built the infrastructure to deploy into the Nevada market, including mobile applications and retail sports betting.

Seamus McGill, chairman and interim CEO of GAN, commented: “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.

“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.

“This is the 3rd state where our B2B sports betting technology and trading solution, GAN Sports, will be operational, and we look forward to bringing a unique and fun wagering experience to a large and growing market.”

September proved to be a challenging month for the industry, as nearly all the gambling stocks on our watch list endured substantial declines.

Some companies, unfortunately, fared even worse than others, with 888, GAN and XLMedia emerging as our top underperformers during this tumultuous month.

888

888, a regular in this feature, faced the most significant setback among operators, witnessing a substantial 24% drop in its stock value.

The company recently cautioned investors about their Q3 2023 performance, projecting a 10% year-over-year decrease in revenue to £400m.

This warning closely followed a similar note from Entain, which revealed its intention to expedite a market review and operational streamlining in light of Q3 2023 results that fell below expectations.

Entain’s stock value also experienced a notable decline of 21% in September.

Both companies attributed their challenges to a combination of factors, including the impact of sports results and the effects of newly implemented safer gambling reforms in the UK. 

888 also noted an “ongoing significant impact from compliance changes implemented in dotcom markets”. 

The business made major changes to its policies in these countries after launching an internal probe in January into the checks it performed on Middle Eastern high rollers.

888 executive chair Lord Mendelsohn said: “We are making significant strides to improve the quality and long-term sustainability of our revenues, but performance in Q3 has been below our expectations, and this means we now expect to end the year with EBITDA below our prior expectation.”

With Entain and 888 both posting warnings about Q3 performance, investors are monitoring rival Flutter Entertainment, which has shown no signs yet of making a similar announcement.

GAN

In the supplier category, GAN experienced a challenging month in September, with its stock declining by 24%. 

Starting the month at $1.44, it ended at $1.16 on 29 September, the final trading day of the month.

The resignation of long-serving CEO Dermot Smurfit and the appointment of Seamus McGill as interim CEO on 27 September did provide a brief boost of approximately 20% to the stock. 

However, GAN investors have faced better times in the past, with the stock losing nearly 20% over the last six months and nearly 50% over the past year. 

Notably, the stock reached its highest point on 8 February 2021, at $30.45.

Earlier this year, GAN initiated a comprehensive company-wide strategic review process aimed at accelerating its path to profitability and achieving a more appealing return profile.

When presenting GAN’s Q2 2023 results, Smurfit said the company had received indications of interest from prospective bidders interested in acquiring the business. 

He added that a special board committee comprised of non-executive directors was evaluating the proposals, although no agreement has been reached at this time.

The latest quarter saw GAN report revenue of $33.8m, which represented a decrease of $1.2m compared to the same period of last year.

It’s fair to assume that investors are eagerly awaiting further updates on the strategic review as GAN navigates these changes and challenges.

XLMedia 

The affiliate with the biggest stock loss in September was XLMedia, down 29%. 

Over the past six months, its shares have plummeted by nearly 40%, and it has seen a decline of approximately 60% over the past year.

In September, XLMedia’s stock opened at £11.63 and remained relatively stable for most of the month. 

However, it began to decline following the ban imposed by the UK Advertising Standards Authority (ASA) on an XLMedia Instagram ad featuring Manchester United’s Mason Mount.

What might have raised more concerns among investors was XLMedia’s failure to respond to any of the ASA’s inquiries regarding the banned advertisement. 

The regulator expressed its “concern” over the lack of response and the apparent disregard for the rules.

Then, on 29 September, XLMedia’s shares experienced another decline after the company reported a 34% revenue decline for H1 2023.

XLMedia had previously disclosed its H1 results in July, but opted for a repeat presentation in September. 

This time, the presentation featured only the CEO and CFO discussing the results without a Q&A session.

This resulted in another drop of nearly 6% in the company’s shares.

GAN has accepted the resignation of long-serving CEO Dermot Smurfit.

Smurfit, who has been with the iGaming software supplier for 21 years, resigned as chief executive and a director of the company on 25 September 2023.

Having joined the company in 2003, Smurfit became CEO in 2010.

GAN has vowed to explore a potential consulting role for Smurfit, who remains a major stockholder in the Nasdaq-listed business.

GAN has since moved to appoint Seamus McGill as the firm’s interim CEO.

The 72-year-old previously served as chairman of the board at GAN and has been a member of the board of directors since 2014.

McGill boasts more than 25 years of experience in gaming and tech, and most recently held the role of president of JOINGO, a mobile software company in San Jose, California.

McGill also spent five years at Aristocrat Technologies as COO. Prior to that, he helped orchestrate the sale of Cyberview Technology to IGT while serving as president.

McGill will receive an annual base salary of $500k and will assume leadership of all executive functions at GAN, including leading the supplier’s strategic roadmap.

GAN opened a formal strategic review in Q4 2022.

A company SEC filing confirmed that GAN will continue evaluate non-binding indications of interest in the business, although there are currently no transaction agreements in place.

GAN’s Q1 2023 revenue slipped by 6.3% year-on-year to $35.1m as the business reported reductions across both its B2B and B2C business segments.

The reduction in B2B revenue was the result of a renegotiation of the company’s contractual revenue rates with its largest customer in that segment, US market leader FanDuel.

This left the business with Q1 adjusted EBITDA of close to zero, at just $39,000. That represented a significant decline from the $3m in adjusted EBITDA reported in Q1 2022.