why-is-gan-stock-going-up-1601997087479.jpg
Source: istock, GameAccount Network

GAN Inks iGaming Deal with Wynn, Stock Jumps 12 Percent

By

Updated

On Oct. 5, GAN stock rose more than 12 percent after the company announced a 10-year agreement with Wynn Resorts. GAN will provide the enterprise software platform for Wynn Resorts iGaming and Internet sports betting in Michigan. GAN stock made an intraday high of $20.48 on Oct. 5. Wynn stock rose 0.9 percent and closed at $73.85.

Article continues below advertisement
gan-wynn-resorts-deal-1601996396140.jpg
Source: istock

What is GameAccount Network?

GameAccount Network is a U.K.-based gambling company. It provides enterprise software-as-a-service (SaaS) solutions for online casino gaming and online sports betting. The company was started by David McDowell and Kevin O'Neal in 2002.

Article continues below advertisement

What is GAN's stock news?

On Oct. 5, GAN announced a 10-year agreement with major casino operator Wynn Resorts. GAN will provide an enterprise software platform for Wynn’s iGaming operations and online sports betting in Michigan. The companies expect to introduce the app in November 2020 — subject to regulatory approvals. The financial terms of the agreement weren’t revealed.

Article continues below advertisement

In a press release, GAN said, “The Michigan launch between GAN and Wynn will be a part of the market access agreement between GAN and the Sault Ste. Marie Tribe of Chippewa Indians, who operate five casinos under the Kewadin Casinos brand in Michigan, announced on March 27, 2020.” GAN expects that online sports betting and iGaming in Michigan could generate $377 million in sales in the first full year and increase to $836 million by its fourth year.

gan-sports-betting-1601996563196.jpg
Source: istock
Article continues below advertisement

What is GAN’s stock price in after-hours trading?

On Oct. 5, GAN stock surged by 1.2 percent in after-hours trading. In the after-hours trading, the stock made a high of $18.40 and a low of $18.19.

What is GAN’s stock price today?

GAN stock was down about 0.5 percent at $18.10 in pre-market trading on Oct. 6 as of this article's writing. The stock rose 12.2 percent on Oct. 5 and closed at $18.19 with a market capitalization of $526.3 million. GAN stock has risen by 13.3 percent in the last five days, while it has fallen by 33 percent in the last three months. GAN stock is trading 37.2 percent below its 52-week high of $28.95 and 71.6 percent above its 52-week low of $10.60.

Article continues below advertisement

Should you buy GAN stock?

Currently, analysts' stock price forecast for GAN is $28.63, which suggests a 57.4 percent upside. The highest target price of $30 implies a 64.9 percent upside, while the lowest target price of $28 suggests a 53.9 percent upside. All four of the Wall Street analysts tracking GAN stock recommend a buy. None of the analysts recommend a sell.

Advertisement

More From Market Realist