Key Points
- The software licence of GAN (UK) Limited, which it has held since 2009, appears to have been surrendered with an expiry date of 4 November.
- B2B provided only ¥1.1bn out of GAN’s total ¥10.8bn revenue recorded in the half-year, as opposed to ¥9.4bn made by B2C.
- Management predicts that an incomplete V2 migration will account for $29m of the expected $39m EBITDA improvement.
GAN’s British Licence Expires After Nearly 18 Years
GAN’s British software licence expired on 4 November after nearly 18 years. Two days after the expiry date, its owner released financial figures that may reveal more about the business than its licence surrender. There is no clear explanation behind GAN’s licence surrender in the Gambling Commission’s register or the company’s financial figures.
GAN entered the British market in 2002, running real money competitions, and then shifted to B2B software in 2009. Shareholders approved Sega Sammy’s $107.6m purchase in February 2024, followed by Nevada regulators’ green light in September. According to accounts filed by the UK company, the transaction concluded on 27 May 2025. Sega Sammy has presented its acquisitions of GAN and Stakelogic as its strategy to enter the US iGaming market.
Records Show Surrender of Licence and an Earlier £470 Fine
GAN’s software licence surrendered on 4 November 2026 is shown in the public register maintained by the Gambling Commission. Surrendering a licence is different from suspending or revoking it. The register does not show any other licence for the company.
The company has a Las Vegas office according to the entry in the register, matching its US iGaming strategy. The entry also reflects a £470 fine imposed on 19 June 2026 for general and regulatory returns. There is no connection between the fine and surrender in the entry. Hence, it cannot be established that one caused the other.
Section 41 of the Gambling Act 2005 requires a business to have an operating licence in order to manufacture, supply, install and adapt remote gambling software.
Revenue in GAN’s UK Accounts Dropped by 61% in 2025
GAN submitted its 2025 accounts to Companies House on 29 July and they covered the year up to 31 December 2025. The accounts indicate that the company’s revenues dropped from £15.9m to £6.1m, which constitutes approximately a 61% decrease. The company’s net loss grew from £3.4m to £9.4m because of poor performance of the European business, mostly in Italy.
Part of the revenue loss can be attributed to transfer pricing, according to the accounts. The term refers to charges between different companies of the same group. The company moved the US-based contracts to its Nevada subsidiary on 1 January 2021, thus making the British company responsible for the European customers and the provision of the service to the businesses within the group.
The business activities and employment levels reduced as a result of the 2025 takeover. The accounts also point out that the parent company provides support to the UK company for at least 12 months and has no intention to dissolve the UK business.
Sega Sammy’s Revitalisation Plan Involves Layoffs and Migration to V2
Sega Sammy’s June revitalisation plan indicates that GAN has already discontinued the V1 platform and Silverback Gaming. The restructuring of the UK office, migration to V2 and removal of unprofitable clients remained incomplete.
According to the company’s report, there have been 66 job cuts at GAN, including 29 cuts at Silverback and 27 additional cuts by March 2027. The management expects that these cuts will help the company save $9.7m per year. At the same time, the plan of Stakelogic includes 140 job cuts, which are not included in GAN’s figure of 66.
The management plans to raise the adjusted EBITDA from $-38.3m for the year up to March 2026 to $0.9m. According to the report in June, the company expects approximately $29m of the expected gain from the migration to V2. It is still a forecast and not the actual gain already made by the company. Approximately a $15m increase in the cost of goods sold will partially offset the expected improvement.
Under V1, each client was using a separate source code base. Under V2, one common source code base replaces this arrangement. The company expects better scalability and improvements in the user interface/user experience.
These are still the goals until the clients migrate to V2.
B2B Makes Up About 10% of GAN’s Six-Month Sales
In Sega Sammy’s November results, GAN’s six-month sales were recorded at ¥10.8bn. B2B made up just ¥1.1bn out of this sum, and B2C accounted for ¥9.4bn. Thus, B2B accounted for less than a tenth of GAN’s sales.
The fiscal year-end of GAN falls in December, which means that Sega Sammy takes account of GAN three months later than the wider group. Thus, the six-month sales presented in the report covered a period preceding the one covered by the results of the parent company.
The total amount of B2B and B2C sales is ¥10.5bn, leaving ¥0.3bn of the reported ¥10.8bn unaccounted for in the presentation. Moreover, the revenue cannot be taken to reflect the profits earned by the two businesses, because the parent company presents only the overall operating loss of GAN.
The management expects to see the same picture in the course of the next 12 months, predicting ¥3.2bn in B2B sales and ¥19.6bn in B2C.
The businesses operate differently from each other in their revenue-earning practices. The platform suppliers use shared technology to satisfy multiple clients, whereas consumer brands earn revenue directly from the gamers. Thus, GAN’s figures presented above show that consumer business makes up the majority of sales.
Redundancy Consultation Launched in Coolbet Headquarters in Tallinn
Tallinn-based Coolbet’s headquarters started a redundancy consultation in the second half of October. According to iGaming Times, employees learned of it in an all-hands meeting held on 26 October. NEXT.io reported 131 job cuts, whereas ERR reported up to 134.
The reason behind the proposed redundancy, according to the management, was “weaker than expected results on the B2B side”. The consultation remains ongoing.
US Expansion Takes Precedence Over UK Operations as Stakelogic Keeps UK Licences
According to Sega Sammy’s June presentation, Station Casinos is GAN’s main US client. Furthermore, the list includes commercial and tribal casinos in Nevada, California, Oklahoma, and Florida. They are potential pipeline targets rather than actual clients.
GAN also plans to combine retail and online sportsbooks on V2 after having separated them on V1. Another revenue opportunity for the businesses would be the launch of social casino games with Sega Sammy titles transformed by Stakelogic and revenue split between them.
Expert Analysis
We see GAN’s licence surrender as a consequence of the restructuring of Sega Sammy, despite the lack of documents which link these events together. GAN has closed down V1, reorganised its office in the UK, and has surrendered its software licence in Britain. In our opinion, it seems more likely that surrendering its licence is the consequence of restructuring, and not the reason for it.
However, the financial details require a further look. GAN generates B2B sales which account for only a tenth of total revenues, but at the same time, it expects nearly three-quarters of improvement in the EBITDA as a result of V2 migration. We need to remember that while revenue and profit are related notions, they do not always correlate in the same way.
It is true that the sales numbers are relatively low, but we do not know whether B2B business has good earning potential.
However, Sega Sammy expects $29m of improvements in the case of unfinished migration. Such an expectation needs a proper evaluation.
It is true that the B2B sales may look low due to the process of migration which clients are undergoing, and once all the clients migrate to V2, the revenue numbers will increase. It is possible, however, that the June presentation shows that migration is still going on.
We believe that Sega Sammy should provide a rationale for the surrender of the licence by GAN. The absence of such rationalisation in the company’s documents leaves some room for discussion.
From the sales breakdown perspective, GAN seems to be a more consumer-oriented firm with the platform rather than the opposite, which is our own editorial analysis of the numbers provided.
After completion of the migration to V2, the next useful number will be B2B revenue. If sales increase, then management will have solid proof of its turnaround strategy.
At least, for now, we want to find out if B2B business with ¥1.1bn in half-year sales can bring about the expected improvement for Sega Sammy.
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