The Nevada Gaming Commission Thursday granted a two-year conditional license to sports-betting-technology company GAN Limited after raising questions about the company’s management turnover and financials.
The Commission backed a recommendation made earlier this month by the Nevada Gaming Control Board.
On the NASDAQ exchange on Thursday, GAN traded at just above $1, down from just over $30 in February 2021. The stock has fallen more than 32% in the last six months.
GAN is an American B2B technology provider of internet gaming and an international B2C operator of internet sports betting.
In late September, Seamus McGill, chairman of the board of directors, was named interim CEO after the board accepted the resignation of longtime CEO Dermot Smurfit, who remains a stockholder in the company.
The Commission approved the licensure of McGill, who joined the GAN board in April 2014. He plans to step down from his chairman position in the coming weeks as part of assuming the CEO duties.
Commissioner Brian Krolicki told McGill he has a “challenging situation” and called him “the right guy for the right opportunity at the right time, despite it being incredibly difficult.”
Krolicki asked company officials if there were any defaults on its credit facilities, but was told there are none.
“Your world is complex and your stock is trading at a buck five today,” Krolicki told company officials. “You’re flirting with the NASDAQ-listing issues, but I wish you the very best as you go forward.”
Krolicki cited casino operators Red Rock Resorts and Wynn Resorts, which are looking to use GAN’s technology in Nevada. GAN’s GameSTACK platform is under review for certification.
When Commissioner Oganna Brown inquired about Smurfit’s departuren, GAN’s Chief Legal Officer Sylvia Tiscareño confirmed it was over an investigation of allegations of non-disclosure of assets and sexual harassment. She said the allegations of sexual harassment came during his time at GAN and not prior.
Brown asked what kind of due diligence GAN is doing before it hires people at the top level.
“Right now, we’re not onboarding anyone new,” Tiscareño said. “We’re discussing the different kinds of things with compliance we could implement as part of our own due diligence. The exhaustive regulatory process does weed out a lot of things, but there is nothing ever we would have discovered in this particular instance that would have revealed any concerns.”
Tiscareño said GAN uses a third party to do background checks that include public information and going through criminal backgrounds.
McGill brings 25 years of direct industry experience to the position. Previously, he was president of JOINGO, a mobile software company. Prior to JOINGO, McGill spent five years at Aristocrat Technologies Limited as COO, helping drive growth in North America, including changing the strategic focus to recurring-revenue games. Before his time at Aristocrat, McGill was president of Cyberview Technology, Inc., and orchestrated its sale to International Game Technology.
McGill held senior positions at WMS Gaming and as managing director of international operations helped spearhead the company’s growth into several new markets around the globe. He started his career in gaming with Mikohn Gaming Corporation. Prior to moving to the U.S., McGill worked for seven years in Japan and three years in Singapore.
