Maine became the most recent state to propose legislation to legalize sports betting in the United States. GAN, a supplier of Internet gambling software and platforms, had hoped to take advantage of that. It wanted to be one of the businesses that offered online sports betting in the state.
However, while the bill passed the Maine State Legislature, the governor declined to sign it.
GAN is hoping for better luck next time.
About GAN
GAN’s main focus has been on business-to-business Internet gambling software. The company began designing Internet software in 2004. Its goal was to develop software that would allow gambling companies to run a platform without a problem. This notion of turnkey software was a new concept. GAN developed its most famous software, GameSTACK, on that premise. GameSTACK is an independent platform that offers casino games, as well as customer data. The platform has a payment system and a payout system as well. New adaptations to the system allow the business to message and interact with customers seamlessly. GAN has businesses in the United States and Europe.
GAN was hoping to offer services for the proposed online sports betting legislation in Maine. The bill that passed in the legislature on June 21 would have allowed both online and mobile sports betting. The licensing fees in Maine for sportsbooks would have been $2,000, the lowest in the country. The tax rate for online sportsbooks would have been 16 percent. This is more than the 10 percent tax charged for other forms of gambling in the state.
The Issue in Maine
The legislative approval of the sports gambling bill stopped dead when Gov. Janet Mills declined to sign it. She said she is concerned about the expansion of gambling in the state. Maine already has casino gambling and pari-mutuel betting. There is also lottery gambling and bingo halls. However, the governor said she feels this is enough gambling for now. She’s concerned that the problems with gambling outweigh the revenue. Currently, Maine does not have single sports betting in any form.
Because the governor declined to sign the bill, the legislature has a couple of options. The governor has essentially placed the bill in a holding pattern. She has the right to veto the bill within the first three days of the legislative session. That could come later this summer in a special legislative session. However, many experts see this as unlikely. Instead, the governor is more likely to veto the bill when the legislature begins again in January. If the governor doesn’t veto the bill within the first three days of the legislative session, it will become law. Even if the bill become law, there will not be time to build a platform by the football season. This has left many Maine gamblers disappointed, and hopeful for a change in the legislation.
What’s Next for GAN?
In the meantime, GAN is having a great year. It has signed new contracts in Europe for people to use its gambling platform. The company reported that its revenue for May was up nearly 59 percent from the year before. GAN earned $38 million in 2019 compared with $24 million in 2018. Also, the sports wagering end of the company saw success. The handle for sports betting was $263 million compared with $254 million the month before. However, this does not beat its strongest month this year. That was in March, at nearly $300 million. The company did see its gross gambling revenue drop slightly in May when compared with March and April.
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