Details of the Deal
The details of the deal are what made this partnership interesting. GAN has usually provided casinos with their Simulated Gaming online experience, where they create or use an existing rewards program. Their experience uses social gaming as a doorway to creating customers that usually would not go, offering free-play games through social media sites, primarily Facebook. Using the free games to give the players rewards that they can use at the Borgata casino gives them incentives to go and play. With this particular deal:
Pending regulatory approval by the state, GAN would have the chance to also manage the Borgata’s real-money operations. Considering that their online casino, regulated and licensed through New Jersey, is one of the top earners, leading the pack with $4.47 earned in January; up by 20.7% year-over-year. It goes without saying that this deal will be big for GAN, however, it will be beneficial for both sides.
Reaching the Customers
The problem that the Borgata currently faces is the fact that most of its customers live outside of New Jersey, making it impossible for them to access and use the real-money online casino. This is where GAN comes in, as they will use the legal, free-to-play games using social websites like Facebook. They plan on launching in the first half of 2016. CEO of GAN, Dermot Smurfit stated, on this particular subject,
Our strategic market positioning is to serve as an enterprise-level solution for either Simulated Gaming or real money Regulated Gaming and, in certain circumstances, our single technology platform may serve both requirements. In 2016 Simulated Gaming will be served to the majority of Borgata’s patrons who live out-of-State and, in the event GAN receives Borgata’s consent to commence operations is equally capable of simultaneously serving real money Regulated Gaming to the Borgata’s patrons resident in New Jersey.
Using this strategy, and with reports that up to 50% of their customers already use Social Casinos, this strategy will help them not only retain the customers by providing the games themselves but also giving them rewards they can exchange at the physical location of the Borgata in Atlantic City. Tom Balance, President and COO of Borgata Casino Hotel & Spa seems to be confident that their partnership with GAN will be successful, considering the companies experience and capability. This will give them another segment to offer customers, as well as possibly newcomers.
Thursday, November 12, 2020