SHARE PUNT OF THE WEEK: Gan to benefit from the end of US ban on sports betting


City & Finance Reporter for the Daily Mail

WHO IS IT? AIM-listed Gan provides gaming software which can be used online through desktops and apps. Customers include Paddy Power Betfair and a number of US casinos.

WHAT’S THE LATEST? UK gaming companies suffered a setback this week as the maximum stake on fixed-odds betting machines was slashed from £100 to £2.

But in the US, gaming and sports betting is a growing industry, and this week the US Supreme Court ended a 26-year ban on betting on professional and college sports.

Gan, which provides companies with the tools to provide betting services, could be a major beneficiary of this decision.

WHO BACKS IT? One of the largest shareholders is activist investor Odey Asset Management. The hedge fund has a 4.1 per cent stake in the business. Investment group Artemis is also among its backers, with a 4.6 per cent stake. 

The largest shareholders are chief executive Dermot Stopford Smurfit Jr and non-executive Michael Smurfit Jr, who between them own more than 20 per cent of the shares.

WHY YOU SHOULD INVEST The end of the gambling ban in the US is good news for Gan, and analysts at Liberum and Davy believe it will have a positive impact on revenue.

But experts say the real opportunity is in so-called simulated gaming, where users buy virtual credits to bet through an app and are paid in reward points.

AND WHY YOU SHOULDN’T Gaming and gambling are highly regulated, and it takes only one rule change to alter the investment outlook.

For a fast-growing business such as Gan, the key is going to be securing the right partnerships and hanging on to them in a fiercely competitive space.



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