GAN Announces Appointment of Leading Intellectual Property Litigation Firm to Drive Licensing & Enforcement of US Patent

LONDON & DUBLIN–(BUSINESS WIRE)–GAN plc (“GAN” or the “Company”), an award-winning developer and
supplier of enterprise-level B2B Internet gambling software and services
in the United States, today announces the Company has awarded a mandate
to specialist intellectual property litigation firm Irwin IP LLP (“Irwin
IP”) in Chicago, IL to implement a US patent licensing and enforcement
program principally targeting operators in the regulated intra-State
Internet gambling markets of New Jersey, Nevada, Delaware and
Pennsylvania which are currently infringing upon the Company’s
US-patented intellectual property rights.

The commencement of GAN’s Patent licensing program was announced on May
30, 2017 following an unsuccessful ‘ex parte’ (anonymous) legal
challenge to GAN’s US patent number 8,821,296, reinforcing the value of
GAN’s US-patented technology for linking land-based casino reward cards
to online gambling accounts.

Following the completion of the £7.5M Equity Placing in June 2018 and
the appointment of Irwin IP LLP, the Company will now proceed to assert
its rights over US-patented intellectual property and seek commercial
settlements for prior and continuing infringements by regulated Internet
gambling operators and/or relevant technology vendors, who have been
substantially and progressively placed on notice of the Company’s US
intellectual property rights.

A further update will be provided at GAN’s H1 2018 interim results on
September 28, 2018.

Highlights

  • GAN’s US Patent was awarded in September 2014 and this US-patented
    technology has been licensed by GAN to many of the largest US casino
    operators including Station Casinos, Chickasaw Nation, MGM Resorts,
    Ocean Resort Casino and Parx Casino for both Simulated Gaming (social
    casino gaming) and regulated real money Internet gambling in both New
    Jersey and Pennsylvania
  • Irwin IP is an experienced intellectual property litigation firm in
    Chicago, Illinois with a substantial track record in the US casino
    gaming Industry securing injunctions and/or commercial licensing
    agreements with major US casino equipment manufacturers and/or US
    casino operators
  • Irwin IP’s accomplishments include representing a mid-sized software
    company in a three-week jury trial culminating in a $16 million jury
    verdict; helping a small, disruptive start-up defeat patent
    infringement and false advertising claims asserted by a large,
    multi-national company; and securing a permanent injunction and $7.3
    million jury award in an offensive gaming patent infringement matter
    protecting a $100-million-dollar-a-year product line

Patent licensing and/or settlement awards represent a potentially
high-margin incremental income stream for GAN.

FAQ’s about Internet Gambling ‘Platform’ & US Patent

  • For investors and Industry analysts: The core of a “Platform” from
    both a technical and regulatory standpoint is the Player Account
    Management System i.e. where highly sensitive customer and player
    activity data is stored and processed. Other elements of Platform can
    include a sportsbook transaction engine, gaming content integrations,
    payment services, marketing services, trading services and other
    ancillary activities. However, the core functionality to describe B2B
    systems and services as a ‘Platform’ is the Player Account Management
    System. This is also the layer of B2B activity which tends to require
    regulatory approval as a ‘Platform’ since it is the focal point of
    data and player security. Therefore, without the Player Account
    Management System, a service provider might be offering very valuable
    B2B functionality but not in the strictest sense a ‘Platform’ (source:
    Regulus Partners, an international gambling advisory group
    ).
  • All US casinos operate an on-property rewards program (also called
    ‘loyalty programs’) where visitors to the land-based casino can enrol
    in a loyalty program, collect a rewards card and accumulate reward
    points from real money gambling on-property. Typically, US casinos
    have more than half of their active on-property patrons enrolled in
    these reward programs.
  • GAN’s US-patented technology principally permits US casino operators’
    carded patrons to link their reward card to their online gambling
    account in order to identify themselves as a patron of the land-based
    casino and a member of their retail rewards program.
  • The Patent was awarded to GAN plc in September 2014 by the US Patent &
    Trademark Office (“USPTO”) with the Patent reissued under the same
    Patent number by the USPTO on March 17, 2017 following an unsuccessful
    ex parte challenge brought by an anonymous US Industry actor.

Notes:

1 https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/GAN/13241403.html

GAN | Overview

GAN is a leading B2B supplier of Internet gambling enterprise
software-as-a-service solutions to the US land-based casino Industry.
GAN is listed on the ESM Market of the Irish Stock Exchange and the AIM
Market of the London Stock Exchange under the ticker: GAN

The Company has developed an Internet gambling enterprise software
system, GameSTACK™, which it licenses principally to land-based US
casino operators as a turnkey technology solution for regulated
real-money Internet gambling encompassing Internet gaming & Internet
sports betting and/or virtual Simulated Gaming.

GAN has fourteen (14) casino operators as clients of Simulated Gaming
coast-to-coast across the US and Internationally; two (2) clients of
real money Regulated Gambling in New Jersey; one (1) client of real
money Regulated Gambling in Pennsylvania and ten (10) clients of real
money Regulated Gambling in Europe.

The Internet Gambling System, developed in London under a UK Gambling
Commission license, is certified to the highest technical standards
currently required by gambling regulators. In April 2017 GAN was granted
a Casino Service Industry Enterprise license by the New Jersey Division
of Gaming Enforcement being GAN’s first privileged gaming license in the
United States. In May 2018, the US Supreme Court repealed PASPA and GAN
confirmed the H2 launch of sports betting for US clients integrated into
GAN’s enterprise software platform. In September 2018 GAN launched
Internet sports betting in New Jersey, available as an integrated option
alongside Internet gaming.

For more information please visit www.GAN.com

About Irwin IP LLP

Irwin IP specializes in intellectual property and technology-related
litigation. Irwin IP’s founder, Barry Irwin, has been recognized as a
‘Super Lawyer’ and ‘Leading Lawyer’ each year for nearly two decades,
and was recently named one of the Top 100 lawyers in Illinois, one of
only eight intellectual property attorneys.

Barry and several of the other senior Irwin IP attorneys spent decades
working at one of the most prestigious law firms in the country where
they had a long history of achieving successful results in the gaming
industry for companies like IGT, Action Gaming and Shuffle Master.

For more information please visit www.IrwinIP.com

Contacts

GAN
Dermot Smurfit, +44 (0) 20 7292 6262
Chief
Executive Officer
dsmurfit@GAN.com
or
US
Investors:

The Equity Group
Adam Prior, 212-371-8660
aprior@equityny.com
or
UK
& Ireland Investors:

Walbrook PR
Paul
Cornelius, +44 20 7933 8780
GAN@WalbrookPR.com
or
Davy
(Nominated Adviser, ESM Adviser and Joint Broker)

John Frain /
Barry Murphy, +353 1 679 6363
or
Liberum (Joint Broker)
Neil
Patel / Cameron Duncan, +44 (0) 20 3100 2000