The UK based GAN Limited is a “business-to-business supplier of internet gambling software-as-a-service solutions”. The tech giant is popular with gamblers all around the world, especially for its innovative video slot machines. GAN operates in various countries, although most of its partnerships are in the US. According to GAN’s website, these US partners generate up to $9 billion in GGR per annum. With this short presentation, it’s no wonder why everyone got so excited about GAN’s partnership with Wynn Resorts.
Wynn Resorts’ reputation is also impeccable as the company prides itself as being one of the biggest players in the gambling industry with a significant presence in two of the world’s gambling capitals – Las Vegas and Macau.
GAN and Wynn Resorts signed a 10-year agreement in October 2020 to create online casinos in Michigan. The Michigan deal between GAN and Wynn is planned as a part of the market access agreement between GAN and the Sault Ste. Marie Tribe of Chippewa Indians. They operate five casinos under the Kewadin Casinos brand in Michigan. The online casinos are set to begin operation in 2021.
Michigan Gambling Enters the Internet Age
The governor of Michigan, Gretchen Whitmer, fully legalized online gambling in December 2019. Thus, Michigan officially joins the ranks of New Jersey, Pennsylvania, Delaware and West Virginia, which already enjoy the success of their booming online gambling industries.
Players from Michigan can soon play their favorite casino games from the comfort of their own homes. With the closure of many physical casinos due to the COVID-19 pandemic, the opportunity to play online cannot come at a better time.
However, despite the fact that Michigan legalized online gambling in December 2019, it takes significant time to regulate this new market and issue appropriate licenses. Still, the COVID-19 pandemic would most likely speed up the legal process as the state needs additional tax revenue more than ever. Wynn Resorts and GAN are waiting for official approval and there is not a specific launching date yet available. Nevertheless, we expect their online casino to “open doors” some time in 2021.
GAN and Wynn Resorts’ Deal – Exploring the New Market
GAN and Wynn Resorts were quick to partner with each other in order to establish themselves early in Michigan’s new online gambling industry. Despite the ongoing COVID-19 pandemic and state regulations, the two companies managed to work together, and their mutual project is likely in its final stages. This speculation is supported by a statement that Wynn’s CEO, Matt Maddox, issued in November 2020. In the statement, Maddox said that he expected the online casino to go live in Michigan “over the next two quarters”.
As two of the biggest companies in the gambling industry, GAN and Wynn’s partnership promises to bring software innovations, characteristic of GAN, along with knowledge of American casino management from Wynn’s experiences with operating physical casinos, most notably in Las Vegas. These two gambling giants might establish themselves as the leading operators in Michigan, due to their previous experiences and popularity within the gambling community.
GAN’s Stock Skyrockets – The First Signs of Future Success
The first signs predicting the future success of GAN and Wynn’s new enterprise are already here – GAN’s stock soars immediately following the partnership announcement. Investors are tangibly excited, which is to be expected from the opening of a new market in Michigan. Moreover, as previously discussed, GAN and Wynn are already well-liked in the global gambling industry with everyone, from the investor to the regular player, patiently awaiting their common project results. GAN’s stock was higher by more than 13 percent on October 5, 2020 – the announcement date. GAN’s stock is still rising in value and would likely continue to rise.
GAN and Wynn Resorts’ Partnership – The Special Relationship
The Special Relationship is a term most notably emphasized by British Prime Minister Winston Churchill, who used it to popularize the partnership between the US and the UK following World War II. As the two countries were recovering from the devastation of the war, they worked together to stabilize their national economies.
When applied to a contemporary context, The Special Relationship can refer to Britain’s westward gaze in the wake of Brexit, which is now a fact. The UK is hoping to strike profitable trade deals with the US now that the country has the opportunity to do so without EU regulations, although British economy would likely suffer from the lack of EU’s trade paths at first. The same is true for private British based companies, as evidenced by GAN’s growing number of American partnerships. American companies are also experiencing losses due to the severity of COVID-19 in the country. We might expect the tendency for American-British partnerships to only increase in the foreseeable future.
GAN and Wynn Resorts’ Partnership – Final Thoughts
Just like everyone, we are also excited about the partnership between GAN and Wynn Resorts, which already proves to be fruitful, judging by GAN’s stock value. Their mutual project is ready to go live once it’s green-lit by Michigan state authorities. Although there is no launching date yet, we expect the online casinos to open in 2021 due to the financial pressure from the COVID-19 pandemic. Check our blog regularly for updates!