After shooting up as much as 26%, shares of casino-software company GAN Limited (NASDAQ:GAN) remain up 12% as of 1:30 p.m. EDT.
The agreement with Wynn makes GAN the enterprise software platform for Wynn's online sports betting and online casino gaming in the state of Michigan. Assuming all regulatory approvals are completed, GAN expects to launch Wynn's online gaming in Michigan in November 2020.
Though Wynn doesn't have a physical casino presence there, the launch is part of a "market access agreement" between GAN and the Sault Ste. Marie Tribe of Chippewa Indians, which was announced in March 2020. The Indian tribe operates five casinos in Michigan.
Large casino operators like MGM Resorts (NYSE:MGM) and Caesars Entertainment (NASDAQ:CZR) have been pushing into the sports betting and online gaming markets. MGM introduced its mobile betting app, BetMGM, in March 2020 and has also been partnering with NFL teams to open physical sportsbooks inside stadiums with lounges to utilize BetMGM. Caesars recently announced it is seeking to acquire British bookmaker William Hill (OTC: WIMHY) for $3.7 billion to propel the U.S. portion of the sports oddsmaker in which Caesars is already 20% invested.
Wynn is focused on Las Vegas and Macau as well as a new Boston Harbor resort that recently opened. The regional casino operators are utilizing their physical sportsbooks to increase participation in sports betting as more states legalize it. Wynn's deal with GAN helps it join in the action. GAN said in a statement that there is opportunity to expand the partnership to multiple additional states in the future.