Ainsworth to end exclusivity agreement with aggregation platform GAN for US distribution of its online real money games
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Australian slot machine supplier Ainsworth Game Technology says it will terminate an exclusivity agreement previously signed with aggregation platform GAN Nevada, Inc, allowing it to integrate its online real money games directly with US operators as of 31 March 2024.
The two companies had previously signed a five-year Content Distribution Agreement, commencing from 1 July 2021, which had allowed GAN exclusive rights to Ainsworth’s online real money games for an agreed fee.
However, Ainsworth said Friday that this agreement has been replaced with a new agreement that terminates exclusivity as of 31 March 2024. GAN will, from that moment, operate on a non-exclusive basis but remain key strategic partner in the distribution of the Company’s online real money games.
By terminating exclusivity, Ainsworth said that payment by GAN of a non-refundable US$5 million exclusivity payment will be accelerated, providing an uplift to the company’s financial results for FY23 and 1Q24. Ainsworth will also receive 1.25 million ordinary shares in GAN.
“From 1 April 2024, Ainsworth will retain Real Money Gaming revenues from direct integrations with operators in addition to revenues from aggregation platforms, including GAN,” Ainsworth said.
“Current direct integrations within the US are averaging revenue of approximately US$1.5 million per annum which is expected to progressively increase as new direct integrations are completed across North America.
“While the Company has previously supplied over 100 games to GAN through their Remote Gaming Servers (RGS) in Michigan, Pennsylvania and New Jersey, this Amended Agreement will provide greater flexibility for Ainsworth to service its US customers, as well as offer an opportunity for better alignment in Ainsworth’s future digital and land- based strategies.”
