The matter will now proceed to the Nevada Gaming Commission (NGC) for final approval. That hearing is set for 26 September. First announced last December, the deal is valued at $107.6m (£87.7m/€100.8m).
At the time, the company said in a statement that the “complementary nature of GAN’s market-leading online gaming technologies and solutions” would expand its North American customer reach.
The Japanese entertainment conglomerate is looking to expand further into the gaming business through its Sega Sammy Creation (SSC) division. SSC produces slots and game content–it also operates the Paradise City integrated resort in Korea. And in July it purchased online game creators Stakelogic for $143.2m.
Given its online presence through the Sega entertainment brand, iGaming and online sports betting are said to be the company’s main pursuits.
Sports betting deals a priority for Sega in Nevada
Prior to the presentation from SSC Wednesday, the board reflected on the anniversary of the 9/11 terrorist attacks. Board member George Assad in particular gave a powerful speech about the impact of the attacks.
Naoki Kameda, president and CEO of SSC, was on-hand to explain the transaction and answer the board’s questions. He provided the board with a slide deck that was kept confidential, but the overview of the deal was rather simple.
Kameda highlighted GAN’s relationship with Station Casinos and its STN Sports app as a priority. He confirmed that the company will pursue other deals with land-based casinos in the area.
“We’d like to be a partner of land-based casinos so that we can expand our online platform together,” he told the board. A deal with Fontainebleau Las Vegas is currently in the works.
He also mentioned social gaming, which he said was “a very big opportunity” for SSC.
In Nevada, both retail and online sports betting are legal. But for online apps, bettors must register in-person, which is a huge point of friction. As a result, major books like FanDuel and DraftKings do not operate in the state. Most individual properties must create their own platforms, generating opportunities for providers like GAN.
Kameda called GAN’s systems “innovative and intuitive.” When asked about turnover post-closure, the company’s attorneys told the board that SSC was excited to bring on GAN’s workforce.
All three board members approved the deal with no conditions.