Australia-listed slot machine maker Ainsworth Game Technology Ltd has announced an update to its partnership with GAN Nevada Inc, a subsidiary of GAN Ltd, a provider of interactive Internet-delivered games.
GAN had, since July 2021, exclusive licensing rights to Ainsworth’s online real-money games (RMG) in the U.S. for a period of five years.
Under the amended agreement, GAN’s exclusivity will end on March 31, 2024, “at which time GAN will operate on a non-exclusive basis and [as] key strategic partner in the distribution of the company’s online real money games,” stated Ainsworth in a Friday filing.
Ainsworth state that the amended agreement would “provide greater flexibility” for the group to “service its U.S. customers”.
As a result of the amendment, the annual guaranteed licence fees will be scrapped from March 31, 2024, and Ainsworth will receive additional compensation of 1.25 million ordinary shares in GAN Ltd.
According to the filing, Ainsworth would, from April 2024, retain real-money gaming revenues from “direct integrations” with operators, in addition to revenues from aggregation platforms, including GAN.
Current “direct integrations” within the U.S. are averaging revenue of approximately US$1.5 million per annum, said the Australian firm. Such revenue “is expected to progressively increase as new direct integrations are completed across North America,” it added.
