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 UNITED
STATES

 SECURITIES
AND EXCHANGE COMMISSION

 Washington,
D.C. 20549

 FORM

 ANNUAL
 REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For
the year ended December 31, 2023

 OR

 TRANSITION
 REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For
the transition period from ________ to ________

 Commission
file number: 001-39274

 GAN

 (Exact
name of registrant as specified in its charter)

 Bermuda

 Not
 Applicable

 (State
 or other jurisdiction of incorporation or organization)

 (I.R.S.
 Employer Identification No.)

Spectrum Center Drive, Suite 1900

 Irvine,
 California 92618

 (833) 565-0550

 (Address,
including zip code, and telephone number, including area code, of registrant's principal executive offices)

 Securities
registered pursuant to Section 12(b) of the Exchange Act:

 Title
 of Each Class

 Trading
 Symbol(s)

 Name
 of Each Exchange on which Registered

 Ordinary
 Shares, par value $0.01 per share

 GAN

 The
 Nasdaq Stock Market LLC

 Securities
registered pursuant to Section 12(g) of the Act: None

by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No

by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No

by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes No

by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files). Yes No

by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer,"
"smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large
 accelerated filer

 Accelerated
 filer

 Non-accelerated
 filer

 Smaller
 reporting company

 Emerging
 growth company

 If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness
of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
public accounting firm that prepared or issued its audit report.

 If
securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements.

by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).

by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No

 The
aggregate market value of the registrant's voting and non-voting ordinary shares held by non-affiliates as of June 30, 2023, based
on last sale price as reported on The Nasdaq Capital Market on that date, was approximately $ 72.1 million.

 At
March 4, 2024, there were 45,107,089 ordinary shares outstanding.

 Documents
Incorporated by Reference:

 Certain
portions, as expressly described in this report of the registrant's definitive Proxy Statement for the 2024 Annual Shareholder
Meeting, to be filed within 120 days of December 31, 2023, are incorporated by reference into Part III, Items 10-14 of this Annual Report
on Form 10-K.

 GAN

 2023
ANNUAL REPORT ON FORM 10-K

 Page

 Item
 1.

 Business

 Item
 1A.

 Risk Factors

 Item
 1B.

 Unresolved Staff Comments

 Item 1C.

 Cybersecurity

 Item
 2.

 Properties

 Item
 3.

 Legal Proceedings

 Item
 4.

 Mine Safety Disclosures

 Item
 5.

 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 Item
 6.

 [Reserved]

 Item
 7.

 Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item
 7A.

 Quantitative and Qualitative Disclosures about Market Risk

 Item
 8.

 Financial Statements and Supplementary Data

 Item
 9.

 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 Item
 9A.

 Controls and Procedures

 Item
 9B.

 Other Information

 Item
 9C.

 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Item
 10.

 Directors, Executive Officers and Corporate Governance

 Item
 11.

 Executive Compensation

 Item
 12.

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item
 13.

 Certain Relationships and Related Transactions, and Director Independence

 Item
 14.

 Principal Accountant Fees and Services

 Item
 15.

 Exhibits and Financial Statement Schedules

 Item
 16.

 Form 10-K Summary

 SIGNATURES

 Except
as otherwise required by the context, references to " GAN, " " GAN Limited, " " the Company, "
" we, " " us " and " our " are to GAN Limited, a Bermuda exempted company
limited by shares, and its subsidiaries. References to " Coolbet " are to Vincent Group p.l.c., a Malta public
limited company and its subsidiaries, which was acquired by GAN Limited on January 1, 2021.

 CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS

 This
Annual Report on Form 10-K contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that reflect
our current expectations and views of future events. These forward-looking statements can be identified by words or phrases such as "may,"
"will," "expect," "should," "anticipate," "aim," "estimate,"
"intend," "plan," "believe," "is/are likely to" or other similar expressions. These forward-looking
statements include, among other things, statements relating to our goals and strategies, our competitive strengths, our expectations
and targets for our results of operations, our business prospects and our expansion strategy. We have based these forward-looking statements
largely on current expectations and projections about future events and financial trends that we believe may affect our financial condition,
results of operations, business strategy and financial needs. Although we believe that we have a reasonable basis for each forward-looking
statement, we caution you that these statements are based on our projections of the future that are subject to known and unknown risks
and uncertainties and other factors that may cause our actual results, level of activity or performance expressed or implied by these
forward-looking statements, to differ.

 The
forward-looking statements are subject to risks, uncertainties and assumptions about our Company. Our actual results of operations may
differ materially from the forward-looking statements as a result of risk factors described under "Item 1A. Risk Factors"
in this Annual Report on Form 10-K, including, among other things:

 our
 ability to generate and sustain profitability in light of the incurrence of net losses and negative cash flows;

 our ability to successfully consummate the proposed merger with SEGA SAMMY CREATION, INC.

 our
 ability to successfully develop, market or sell new products or adopt new technology platforms;

 risks
 related to competition;

 our
 ability to manage the substantial variability in our business operations and forecast our financial results in light of such variability;

 risks
 related to our customer contracts, pursuant to which our revenues fluctuate with the use of our products or services;

 risks
 related to our historical reliance on a small number of customers for a substantial portion of our revenues;

 our
 ability to realize the anticipated benefits of our consummated acquisitions or investments in other companies, including our acquisition
 of Coolbet in January 2021;

 risks
 related to the continued uncertainty in the global financial markets and unfavorable global economic conditions, including as a result
 of the global outbreak of the novel coronavirus ("COVID-19") pandemic;

 our
 ability to attract and retain qualified personnel;

 risks
 related to the heavily regulated online gaming industry;

 our
 ability to maintain good relations with our channel partners;

 risks
 associated with our international operations and fluctuations in currency values;

 risks
 related to unanticipated performance problems or bugs in our software product offerings; and

 our
 ability to protect our intellectual property and proprietary rights.

 The
foregoing factors should not be construed as an exhaustive list and should be read in conjunction with other cautionary statements that
are included in this Annual Report on Form 10-K as well as the items set forth under "Item 1A. Risk Factors." If one or more
events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results
may differ materially from what we anticipate. Moreover, we operate in an evolving environment and new risk factors emerge from time
to time. It is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business
or the extent to which any factor, or combination of factors, may cause our actual results to differ materially from those contained
in any forward-looking statement.

 You
should not rely upon forward-looking statements as predictions of future events. All forward-looking statements attributable to us or
persons acting on our behalf are expressly qualified in their entirety by the cautionary statements. These forward-looking statements
speak only as of the date on which it is made. We do not intend to update or revise these forward-looking statements, whether as a result
of new information, future events or otherwise, unless the securities laws require us to do so.

 PART
I

 ITEM
1. BUSINESS

 GAN
Limited is an exempted holding company organized in Bermuda and through its subsidiaries, consists of two lines of business. We are a
business-to-business ("B2B") supplier of enterprise Software-as-a-Service ("SaaS") solutions for online casino
gaming, commonly referred to as iGaming, and online sports betting applications. Beginning with our acquisition of Coolbet in January
2021, we are also a business-to-consumer ("B2C") developer and operator of an online sports betting and casino platform,
which offers individuals located in select markets in Northern Europe, Latin America and Canada access to a digital portal for engaging
in sports betting, online casino games and poker.

 In
our B2B segment, we feature our technology platform, which we market as the GameSTACK internet gaming platform
("GameSTACK"). The B2B segment develops, markets and sells instances of GameSTACK, GAN Sports, and iSight Back Office
technology that incorporates comprehensive player registration, account funding and back-office accounting and management tools that
enable casino operators to efficiently, confidently and effectively extend their online presence. GAN Sports, our newest product
offering following the acquisition of Coolbet, launched in September 2022 and aims to provide a best-in-class B2B sports betting
product in the U.S. and Canada through self-service kiosks on-premises at land-based casinos as well as mobile versions. Our
GameSTACK platform and related support services are geared towards casino operators, with an emphasis on land-based commercial and
tribal casinos in the United States, although we have deployed our platform in other geographies, such as Italy, Australia, and
Canada. We also market our platform to gaming partners, such as online sportsbooks and gaming content developers, who provide us
with an indirect channel into casino operators. This segment is primarily focused on enabling the U.S. casino industry's
ongoing digital transformation, following the repeal of a federal ban on sports betting in May 2018. Our customers rely on our
platform to run their online casinos and sportsbooks legally, profitably and with engaging content. GameSTACK and GAN Sports enables
us to offer a turnkey technology solution for regulated real money internet gambling ("real money iGaming" or
"RMiG"), online sports betting, as well as ("simulated gaming" or "SIM").

 In
our B2C segment, we operate a B2C casino and sports betting platform doing business as "Coolbet" that is accessible for gambling
through the website www.coolbet.com in markets across Northern Europe, Latin America and Canada with over 1.6 million registered customers
as of December 31, 2023. Coolbet holds, or is operating under, gambling licenses in Estonia, Malta, Sweden, Canada, and Mexico. The majority of Coolbet's
website traffic comes from mobile customers and each region features customized interfaces with localized product offerings and local
language support teams. In 2023, our B2C revenue was generated from online casino games, online sports betting and online peer-to-peer
poker, which comprised 58.0%, 38.6% and 3.4% of total revenue, respectively. B2C revenue slightly decreased 1.4% from $87.5 million in
2022 to $86.3 million in 2023 primarily due to a decline in the number of active customers in our Latin American markets during the current
period. In addition to providing complementary technology to our B2B segment, we believe our B2C segment provides diversification of
revenue streams and growth opportunities in international markets.

 Corporate
History

 We
were an early pioneer of online gaming. We commenced operations in 2002 in the United Kingdom and first generated revenue in December
2002. Our initial product allowed end user residents of the United Kingdom to create an online account, deposit money into that account
and to compete against each other online in competitions of skill. We offered online games of skill to residents of the United Kingdom
under the operation of the United Kingdom's applicable legislation, the Lotteries & Amusements Act 1976 (s.14), which permitted
competitions of skill.

 Beginning
in 2004, we secured our first major customers in the United Kingdom and subsequently launched our first real money casino gambling games
through a license procured from the United Kingdom Gambling Commission following the passage of the Gambling Act 2005, which permitted
companies in the United Kingdom to develop software intended for enabling internet gambling. In 2008 we began securing our first major
customers in Italy and deployed our technology platform in Rome, Italy and served internet gaming content to several major Italian operators
of regulated internet sports betting and gaming.

 In
2010, we released the first version of our GameSTACK enterprise software platform for our first platform customer to launch a new internet
gambling business in Europe as a complement to existing retail bingo gaming business. Following the launch of an internet casino
for a casino operator customer operating on the GameSTACK platform in the State of New Jersey in 2013, we were the first technology platform
provider to accept and process a deposit online in the State of New Jersey and processed the first legal online bet on our proprietary
blackjack game. Our casino operators have continued to rely on GameSTACK to launch their online casinos in new and existing U.S. states
that adopted applicable legislation.

 In
May 2020, GAN Limited completed a reorganization and share exchange pursuant to which we acquired all of the outstanding ordinary shares
of GAN plc and became the parent company of GAN plc. Subsequently, GAN plc changed its name to GAN (UK) Limited. Additionally, in May
2020, we completed our U.S. initial public offering through which we sold an aggregate of 7,337,000 ordinary shares at a price per share
of $8.50 and received gross proceeds of $62.4 million.

 In
November 2020, we entered into a share exchange agreement (the "Share Exchange Agreement"), pursuant to which we agreed to
acquire all of the outstanding equity in Vincent Group p.l.c., a Malta public limited company doing business as "Coolbet"
in exchange for cash and ordinary shares. In December 2020, we completed a secondary public offering, issuing 6,790,956 ordinary shares
in exchange for net proceeds of $98.5 million after underwriting discounts and commissions, and other offering expenses. We used the
proceeds from this offering to fund the cash portion of the purchase price payable to the former Coolbet shareholders. On January 1,
2021, we completed the acquisition of Coolbet for a total purchase price of $218.1 million, comprised of a cash payment of $111.1 million,
the issuance of 5,260,516 ordinary shares (valued at $106.7 million) and the issuance of replacement equity awards (valued at $0.3 million).

 In
2022, we began to expand both our B2B and B2C footprints into other countries in North America. In April 2022, we launched a B2B customer
on our GameSTACK technology platform in the Ontario, Canada market and in January 2023 we launched our Coolbet B2C casino in the regulated
Mexican market.

 In
September 2022 we launched GAN Sports, a modern sportsbook technology platform based on the award-winning Coolbet technology that has
been adapted for the U.S. B2B market and have subsequently launched other jurisdictions such as Massachusetts and Nevada in 2023.

 Merger
Agreement

 On
November 7, 2023, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with SEGA SAMMY CREATION INC.,
a Japanese corporation ("SEGA SAMMY CREATION"), and Arc Bermuda Limited, a Bermuda exempted company limited by shares and
a wholly-owned subsidiary of SEGA SAMMY CREATION ("Merger Sub"), pursuant to which, subject to the satisfaction or waiver
of the conditions set forth therein, Merger Sub will be merged with and into the Company, with the Company surviving the merger as a
wholly-owned subsidiary of SEGA SAMMY CREATION (the "Merger"). SEGA SAMMY CREATION and Merger Sub are affiliates of SEGA
SAMMY HOLDINGS, INC.

to the Merger Agreement, and upon the terms and subject to the conditions thereof, at the effective time of the Merger, and as a result
of the Merger (and without any action on the part of SEGA SAMMY CREATION, Merger Sub, the Company or any holder thereof):

 each
 of the Company's ordinary shares issued immediately prior to the effective time of the Merger (other than shares held by SEGA
 SAMMY CREATION or Merger Sub, by the Company as a treasury share or by any person who properly asserts dissenters' rights under
 Bermuda law) will be converted into the right to receive an amount in cash equal to $1.97 per share, without interest and subject
 to any applicable tax withholding (the "Merger Consideration");

 each
 of the Company's outstanding restricted shares (whether vested or unvested) at the time of the Merger will become vested in
 full and non-forfeitable and will be converted into the right to receive the Merger Consideration;

 each
 of the Company's outstanding restricted share units (whether vested or unvested) at the effective time of the Merger will become
 vested in full and will be automatically cancelled in exchange for the right to receive a single lump sum cash payment, without interest
 and subject to any applicable tax withholding, equal to the product of (a) the Merger Consideration and (b) the number of Company
 ordinary shares subject to such restricted share unit; and

 each
 of the Company's outstanding options to acquire the Company ordinary shares (whether vested or unvested) at the effective time
 of the Merger will become vested in full and will be automatically cancelled in exchange for the right to receive a single lump sum
 cash payment, without interest and subject to any applicable tax withholding, equal to the product of (a) the excess, if any, of
 the Merger Consideration over the exercise price per share of the option and (b) the number of Company ordinary shares issuable upon
 the exercise in full of such option.

 Consummation
 of the Merger is not subject to a financing condition, but is subject to customary closing conditions, including (a) approval
by the Company's shareholders of the Merger Agreement, the Merger and the Statutory Merger Agreement, (b) receipt of applicable
antitrust and CFIUS approvals or the expiration of applicable waiting periods, (c) absence of any order or injunction prohibiting the
consummation of the Merger and (d) the accuracy of the Company's representations and warranties contained in the Merger Agreement
(subject to certain customary qualifications) and compliance by the Company with its agreements and covenants contained in the Merger
Agreement. The closing of the Merger is also predicated upon receipt of approval of the Merger and change in control of the Company by
all relevant gaming authorities. The Company anticipates that this will take some time, and that the closing of the Merger may not occur
until late 2024 or early 2025.

 On
February 13, 2024, the Company held a special general meeting of the shareholders of the Company to consider and vote upon the
Merger Agreement, at which the shareholders approved the Merger Agreement.

 iGaming
and Online Sportsbook Industry and Background

 On
May 14, 2018, the Supreme Court of the United States overturned the Professional and Amateur Sports Protection Act ("PASPA"),
which since 1992 had prevented U.S. states, aside from Nevada and Delaware from engaging in the regulation and taxation of sports
betting activities at the intrastate level. The ruling paved the way for U.S. states to elect individually whether to allow for regulated
sports betting and, by extension, real money iGaming within their borders. Prior to the Supreme Court of the United States overturning
PASPA, U.S. casino operators were largely limited to retail slot and table gaming operations and, in the online channel, to simulated
gaming operations offering no prospect for real money winnings.

 On
June 22, 2021, the Parliament of Canada passed Bill C-218 - the Safe and Regulated Sports Betting Act, which removed the Canadian federal
ban on domestic sportsbook betting in Canada, opening its provinces to allow single-game sports betting, and in April 2022 Ontario became
the first province in Canada to regulate online gambling.

 As
of December 31, 2023, more than 35 U.S. states have approved legalized sports betting, along with Washington D.C., and real money iGaming
is also presently legal in eight states. Each state or jurisdiction has unique regulatory and licensure requirements, and our ability
to rapidly customize deployments and submit expeditiously for individual state gaming licensure has been a vital contributor to our success
in the U.S. market. We enable our customers to deploy iGaming and online sportsbook offerings to their end users quickly, capturing valuable
early-mover advantages in their relevant markets, such as the January 2021 launch in Michigan and the April 2022 launch in Ontario, Canada.
We are presently licensed or approved to operate our RMiG platform in more than a dozen U.S. states, as well as Ontario, Canada and plan
to continue to evaluate new opportunities to provide services in additional U.S. states in 2024 and beyond.

 Online
sports betting deployment models can vary widely due to state-specific regulatory and licensing mandates. However, licensed casino operators
with land-based retail facilities tend to partner with online sportsbook operators in order to accelerate online customer acquisition.
These operators generally rely on a technology platform, such as GameSTACK, for player onboarding, player account management, payment
processing and various back-office tools designed to maintain regulatory compliance and real-time reporting. Additionally, our technology
for online sportsbooks incorporates a sports betting engine for pricing, trade execution and risk management.

 In
order to monetize online and offline players in a coherent manner, casino operators pursue omnichannel marketing strategies that require
deep integration of hardware and software elements, including computing infrastructure, customer relationship management, casino management
system and loyalty program management. Because of the complexity in deploying and maintaining iGaming and online sports betting infrastructures,
casino operators may rely on third-party service providers to operate and maintain all or part of the technology infrastructure on their
behalf.

 Our
Operating Models

 B2B

 Our
product strategy for GameSTACK and GAN Sports is to provide a unified, flexible and highly scalable platform that can be rapidly deployed
for RMiG and online sports betting. In addition to our platform, we offer a range of development, marketing and customer support services
designed to fast-track deployments and provide ongoing operational support following commercial launch.

 Our
GameSTACK platform and related support services are designed to help our customers rapidly launch and scale their iGaming and online
sportsbook operations. Our iGaming offerings support both social, or "freemium," simulated online casino gaming in regulated
and unregulated markets as well as RMiG for deployment in regulated markets. We measure the level of player engagement through key performance
measures including Gross Operator Revenue, which we define as the sum of our B2B corporate customers' gross revenue from SIM, gross
gaming revenue from RMiG, and gross sports wins from sportsbook offerings, which we track for both SIM and RMiG operations.

 Our
GameSTACK customer base in the United States includes large regional operators as well as individual tribal casino operators that operate
retail casino properties, racetracks and online sportsbooks. The largest portion of our U.S. business is in real money internet gambling
with operators in the U.S. states where either (or both) internet casino gaming and sports betting are permitted by regulation.

 B2C

 Our
principal B2C offerings are real-money online sports betting, online casino and peer-to-peer poker. We offer these products directly
to the end customer through our website, which is also available on tablet and mobile devices in markets predominantly across Northern
Europe and Latin America. In order to attract and retain customers, we seek to provide a high-quality customer experience through a high
speed mobile website, excellent customer service and attractive odds. With our own technology and sportsbook software, and in cooperation
with recognized providers for odds data and game content, we strive to provide the best online sportsbook and iGaming offering available,
and believe that positive word of mouth referrals allowed us to increase our revenues and acquire customers at a lower cost than our
competitors.

 Our
Products and Service Offerings

 B2B
GameSTACK Platform, Development and Support Services

 GameSTACK
is a turnkey platform comprising proprietary enterprise software, computer hardware and specific proprietary software components
such as our iSight Back Office tool ("iSight") and the iBridge Framework. GameSTACK is a comprehensive proprietary
hosted software platform providing our customers with account set-up, customer services facilitation, comprehensive player marketing
tools, and the ability to deliver converged gambling across land-based retail casinos and the internet. While developing GameSTACK,
we remained fully committed to building an evergreen and agile software architecture forged from a single code base, ensuring that
developments in game mechanics, new back-office functionalities and integrations with leading third-party software could be
capitalized on by our customers across all gameplay modalities. Importantly, we developed our code to operate in multiple
jurisdictions and under different regulatory requirements, giving us the ability to leverage different configurations quickly to
comply with newly regulated markets.

 GameSTACK
serves as the technical hub of our customers' online gaming presence. The platform provides the foundational technology and back-office
tools necessary for a successful consumer experience, including intuitive player account activation, sophisticated payment services,
geolocation, marketing, loyalty club linking and real-time analytics and reporting. The core of the GameSTACK platform is its player
account management system, in which highly sensitive consumer and player activity data is stored and processed. This information is the
layer of any casino operator's online technology deployment that becomes the focal point of regulatory licensure since it is the
fortified vault of player data and privacy. GameSTACK
also relies on a flexible integration services layer in order to integrate easily with other essential third-party systems such as casino
management systems, remote gaming servers, sports betting engines, and marketing services applications.

 Real
Money iGaming

 Our
RMiG instances of GameSTACK incorporate comprehensive player registration, account funding and back-office accounting and management
tools that enable our casino operator customers to efficiently, confidently and effectively extend their presence online. For the individual
players, our software enables them to create a regulatory-compliant iGaming account online, have their credentials properly validated
in order to activate their account, deposit money into their account and proceed to wager that money on any content we provide on the
relevant casino operator's website or mobile app. The online content may comprise a casino game such as roulette, blackjack or
a casino slot machine game. Content may also comprise a myriad of sporting events on which the diverse outcomes can be wagered on.

 We
have optimized GameSTACK for RMiG, and in particular, U.S. internet casino gaming with geolocation tracking, Know-Your-Customer processes
and a market-leading U.S. payments platform. Payment aggregation services within GameSTACK integrate with a wide range of third-party
payment processors while simultaneously allowing our casino operators to accept cash deposits onsite within their retail casino properties,
which are credited to the players' online account.

 In
the United States, real money iGaming applications must comply with the Unlawful Internet Gambling Enforcement Act of 2006 and with
the federal Wire Act of 1961. Consequently, our RMiG customers must physically deploy our platform within their state's
borders, typically inside their retail casino premises or approved local hosting locations, in order to comply with intrastate
regulatory mandates. Our customers generally procure the computer hardware on which our software, which the Company retains all rights to, is deployed inside of our
customers' data centers.

 GAN
Sports retail and online sportsbook

 GAN
Sports, our newest product offering following the acquisition of Coolbet, is offered as an online and retail solution to U.S. casino
operators as a complete turnkey solution for sports betting technology. The GAN Sports retail offering allows our customers to launch
and operate their sportsbooks on their properties through self-service kiosks, with the ability to add an on-premises or statewide mobile
versions.

 Super
Remote Gaming Server

 GameSTACK
may also be configured as a "super" remote gaming server ("Super RGS"), otherwise known as a remote gaming server
aggregator, which can be deployed on behalf of existing internet casino operators in various U.S. states that are operating on their
own proprietary or third-party platform. Super RGS provides these operators with access to all of our proprietary games, our current
(and all future) remote gaming server integrations, as well as our content library of more than 7,000 internet casino games. Super RGS
creates a technical and commercial vehicle for us to deliver our proprietary casino content and third-party game content across the entirety
of the relevant U.S. intrastate markets. Our Super RGS provides for a cost and time savings for new and existing market operators to
more efficiently manage their game content.

 Simulated
Gaming

 Our
SIM product is custom-designed for the U.S. casino operators seeking to bring their retail brand online and create a new internet gaming
experience delivered as an amenity to their players and leveraging their on-property rewards program using the common code base shared
with GameSTACK for RMiG. For SIM implementations, we design the casino operator's mobile application and website with a branded
experience that is consistent with the casino operator's brand and market positioning. Our iSight technology provides management
tools and streamlines player registration and account funding. We generally host our customers' SIM operations on a combination
of proprietary and cloud servers.

 iSight
Back Office

 GameSTACK
provides operators with a range of day-to-day back-office management tools along with integration application program interfaces for
third-party casino management systems. With the iSight management tool, our casino operators have complete control over their content
selection, player communications, website layout, process automation and real-time analytics.

 iBridge
Framework

 Our
proprietary iBridge Framework is a core feature of our platform, enabling operators to engage online players with innovative loyalty
offers. iBridge provides our operator customers the ability to automatically verify whether a new online player is part of an existing
offline loyalty database. iBridge allows operators to unite in-casino complimentary items and services, loyalty points and other offers
with online play. This enables casino operators to engage their customers online, reinforcing brand loyalty, as well as encouraging online
players to visit retail properties. Our platform integrates with a variety of third-party casino management systems, eliminating the
need for operators to create and maintain two disparate databases as their online businesses grows.

 Development
Services

 We
provide platform development services, which consist of initial deployment of gaming hosting facilities and ongoing development services
to provide updates to the software for enhanced functionality or customization.

 Customer
Support Services

 We
provide a range of term-based operational services to support our customers' online gaming activities. Our premier offering is
a full turnkey combination of marketing services and customer support services. Our managed services teams provide user acquisition,
customer retention management, and customer functions for our operator customers to help them in acquiring and retaining players. These
services are designed to fast-track deployments and provide ongoing operational support following commercial launch for our customers.
We offer marketing and customer services to our casino operator customers to support their deployment of our RMiG and SIM solutions.
Our tailored customer support services include player customer support across email, phone and live chat, marketing agency services and
network management with 24/7 uptime guarantee.

 Non-U.S.
B2C

 B2C
Product Offerings

 We
operate the B2C gaming site www.coolbet.com outside of the U.S., which predominantly operates in select Northern Europe and Latin America
markets. The site offers sports betting, poker, casino, live casino and virtual sports. Coolbet.com is built on proprietary software,
including a proprietary sportsbook engine and risk management tools, enabling us to offer a highly differentiated entertainment experience
when compared to other B2C gaming sites who rely on third-party technology stacks. Because we predominantly rely on in-house technology,
we can rapidly enter new international markets with deeply local and tailor made content. Our B2C product offerings include:

 Sports
Betting

 We
manage an award-winning online sportsbook allowing customers to place various types of wagers on the outcome of sporting events around
the world. We operate as the bookmaker and offer a large variety of betting types in a given event, including both pre-match and in-play
(placed after a sports event has begun) wagers. We offer the ability to place bets on all major sports including football, basketball,
baseball, American football, ice hockey and tennis, as well as emerging sports such as eSports and smaller sports. Coolbet's proprietary
sportsbook features specialist odds compiled by in-house product experts, which leads to more attractive odds and offers on local sports
events and a higher value proposition for customers.

 Online
Casino

 We
offer thousands of digital and live dealer casino games provided by recognized game content creators, integrated into our proprietary
technology. The casino product features many proprietary features and functionalities driving customer engagement. Live Casino, through
its digital online casino offering in selected markets, allows customers to place wagers and play games through a real-time streaming
video solution. Coolbet.com offers customers a catalog of over 6,000 third-party iGaming titles across skill-based games such as Poker
and chance-based games, such as digital slot machines and table games such as Blackjack and Roulette.

 Poker

 Poker
allows registered customers to play poker against each other in cash games and tournaments directly on the website www.coolbet.com in
real-time.

 Competition

 We
operate in a global and dynamic market and compete with a variety of organizations that offer services similar to those that we offer.
Our B2B operations face competition primarily from: (i) online casino content suppliers that provide content direct to consumers; (ii)
retail casino operators that develop their own proprietary online gaming capabilities; and (iii) other similar existing or developing
technology providers that develop competing platforms.

 We
believe the principal competitive factors in our B2B operations include rapid deployment, ease of integration with existing and future
content and gaming, ease of user registration and conversion, regulatory compliance, data security, back office management systems, reliability,
and platform extensibility.

 Our
B2C operations compete against a variety of online sportsbook and casino operators, which range from large international organizations
with greater advertising and marketing resources to local players that provide specific opportunities in local markets.

 We
believe the principal competitive factors in our B2C operations include the overall customer mobile and online experience, better and
more reliable odds making, ease of use and our customer service.

 Customers
and Ecosystem

 Our
principal B2B customers are retail casino operators and online casino brands.

 Our
retail casino operator customers typically require a regulatory compliant and complete enterprise technology solution provider for setting
up, launching and operating an internet gaming business to drive incremental and complementary revenues to their existing retail gaming
business. When a U.S. casino looks to expand online, there is a small group of potential technology vendors available to serve their
needs, and an even smaller subset of companies which are B2B-only business and fully licensed for U.S. internet gaming. We believe we
are one of the few companies whose operational know-how and proven track record of excellence represent a substantial competitive advantage.

 New
retail and online casino operator customers who use our GAN Sports and GameSTACK enterprise solutions require a cutting-edge
platform and sportsbook, often to replace their existing technology. Our full enterprise solution, including retail sports, kiosk
deployment, mobile sports and platform technologies, provides our customers with flexibility to meet their specific needs, from
customers that require an all-encompassing market, customer, and sports trading services solution, to those larger self-managed
operator customers looking to operate on a cutting-edge technology. Beyond our GAN Sports sportsbook content, by proactively
investing in development resources, we have brought together within GameSTACK a solution which offers the leading service providers
spanning payment processing, pre-paid card services, age and identity verification, and geolocation, providing our customers with a
best-in-class solution from end-to-end, right out of the box.

 The
GAN family of casino operator customers represent leading U.S. gaming groups, both retail and online. Some of our casino operator customers
utilize our GameSTACK platform specifically for real money iGaming or online social casinos, while others utilize our full enterprise
solution for RMiG as well as retail and mobile sportsbook. Whether these customers utilize our technology for some or all of their needs,
our customers own retail operations spanning over 100 retail locations, operate tens of thousands of slot machine units on their casino
gaming floors, and possess millions of dedicated loyalty club card holding players within their loyalty program databases.

 For
the year ended December 31, 2023, one of our customers, FanDuel, accounted for 16.4% of our total revenue. Beginning in 2013, we partnered
with FanDuel's majority shareholder, Flutter Entertainment plc (formerly known as PaddyPower Betfair plc), to support FanDuel's
rapid deployment of online sports betting sites in selected states that had legalized single-game sports betting. Under our current commercial
agreements, we provide access to the GameSTACK platform and provide development and support services to FanDuel in the U.S. and Ontario,
Canada.

 Our
U.S. commercial agreement with FanDuel provided that we were the exclusive provider of their casino gaming operations for a three year
period, which exclusivity ended in January 2023. Following the exclusivity period, FanDuel has the right to use other casino gaming solutions,
subject to a requirement to pay us revenue calculated as a certain percentage of their net gaming revenue from RMiG operations. Accordingly,
we could experience a significant decline in our revenue now that the exclusivity period has expired. We currently support FanDuel's
RMiG casino operations in the U.S. states of Connecticut, Michigan, New Jersey, Pennsylvania, and West Virginia. Our current U.S. commercial
contract with FanDuel expires in January 2025.

 Our
B2C casino and sports betting platform is accessible for wagering through the website www.coolbet.com in markets across Northern Europe,
Latin America, and Canada. Coolbet.com originally launched May 2016 and as of December 31, 2023, had over 1.6 million registered customers.
The majority of website traffic comes from mobile customers and each region features customized interfaces with localized product offerings
and local language support teams.

 Seasonality

 Our
online sports betting operations experience seasonality based on the relative popularity of certain sporting events, in particular with
respect to local and international football seasons and high-profile international and regional tournaments. This seasonality could be
exacerbated by cancellations of sporting events in addition to off-seasons, but can also provide increased volume during high-volume
events such as the World Cup and overlapping sports calendars.

 Intellectual
Property Rights

 We
rely on a combination of patent, copyright, trademark and trade secret laws in the United States and other jurisdictions, as well as
license agreements and other contractual protections, to protect our proprietary technology. We also rely on a number of registered and
unregistered trademarks to protect our brand.

 As
of December 31, 2023, we had one registered patent in the United States and two registered trademarks in the United Kingdom relating
to our proprietary technology. We hold a U.S. patent with a term of 20 years, which expires in 2033, that covers the integration of a
retail casino's on-property rewards and loyalty program with an internet wagering experience, whether offered for real money or
virtual-based social casino gaming. Because of the tendency for non-licensed states to implement social casino gaming as an alternative
or precursor to RMiG, and our ability to legitimately and comprehensively integrate the unique ability to connect existing retail rewards
program with an online gaming experience, we believe that our intellectual property provides a key competitive advantage.

 We
seek to protect our intellectual property rights by implementing a policy that requires our employees and independent contractors involved
in development of intellectual property to enter into agreements acknowledging that all intellectual property generated or conceived
by them on our behalf are our property, and assigning to us any rights that they may claim or otherwise have in those works or property,
to the extent allowable under applicable law. Despite our efforts to protect our technology and proprietary rights through intellectual
property registrations, licenses and contractual protections, unauthorized parties may still copy or otherwise obtain and use our software
and technology. We may also face allegations in the future that we have infringed the intellectual property rights of third parties,
including our competitors and non-practicing entities.

 Government
Regulation

 We
are subject to various U.S. and foreign laws and regulations that affect our ability to operate in the gaming and entertainment industry,
in particular in the online gaming industry. These industries are generally subject to extensive and evolving regulations that could
change based on political and social norms and that could be interpreted or enforced in ways that could negatively impact our business.
Regulatory agencies in each of our operating markets continue to examine a wide variety of issues impacting the iGaming and sports betting
industries, and consequently the laws and regulations governing our business could be modified or could be interpreted differently in
the future, or new laws and regulations could be enacted. Material changes, new laws or regulations, or material differences in interpretations
by courts or governmental authorities could cause us to incur substantial additional compliance costs and adversely affect our operating
results. The primary means of enforcement of such regulations is through regulatory licenses.

 Our
B2B operations are licensed and regulated by the United Kingdom ("U.K.") Gambling Commission, and are certified for the
Italian market by the Gaming Labs International in Italy, the Alcohol and Gaming Commission of Ontario in Canada, the New Jersey
Division of Gaming Enforcement, the Pennsylvania Gaming Control Board, the West Virginia Lottery Commission, the Louisiana Gaming
Control Board, the Michigan Gaming Control Board, the Tennessee Education Lottery Corporation, the Colorado Department of Revenue
Division of Gaming, the Arizona Department of Gaming, the Connecticut Department of Consumer Protection — Gaming Division, the
Mississippi Gaming Commission, the Arkansas Racing Commission, the Massachusetts Gaming Commission, the Ohio Casino Control
Commission, the Virginia Lottery, the Sault Ste. Marie Tripe of Chippewa Indians Gaming Commission, and the Nevada Gaming
Control Board. Entry into new geographies will require us to engage with additional regulatory authorities.

 Our
B2C operations are also required to hold licenses in several jurisdictions. We hold gaming licenses in Estonia, Malta, Sweden, and Ontario,
Canada. Our B2C sportsbook technology and technical platform is certified by an accredited third-party according to the licensing requirements
of the regulatory authorities of Estonia, Malta, Sweden, and Ontario, Canada. We also have customers in jurisdictions that currently
do not have a local licensing scheme but are accessible through our existing licenses. A number of these jurisdictions are evaluating the adoption of a local licensing scheme for the
online sports betting and gaming operations that we currently offer. If regulations requiring licensure are adopted in those jurisdictions,
we intend to apply for licensing, but we cannot be assured that we will receive licenses in each instance or that changes in regulation
will not adversely impact our business.

 Licensing
Process

 We
are required to secure licenses to operate in each new jurisdiction where we conduct business and will need to secure additional licenses
in order to expand operations to new markets. In newly regulated markets, new licensing regimes may impose licensing conditions, such
as the requirement to locate significant technical infrastructure within the relevant territory or establish real-time data interfaces
with the regulator that present operational challenges or may stop the licensee from being able to offer the full range of our products.
Certain jurisdictions require us to hold a distributor license, while in other jurisdictions we need to qualify for a vendor license
to supply our licensed customers. The licensing process can be burdensome and lengthy, depending on the local jurisdiction and their
relative ability to move quickly, which is outside our control. Some jurisdictions will allow us to operate on a provisional license
while the regulators process our applications. Other jurisdictions require full licensure prior to commencing operations. Accordingly,
even as new regulated markets emerge, it is difficult to predict how quickly we will be able to derive revenues in such jurisdictions.

 Data
Protection and Privacy

 As
part of our operations, we establish player accounts and receive personal and financial information. Accordingly, our operations are
subject to privacy and data protection regulation in the United States, the U.K., the European Union, Asia Pacific, and elsewhere. These
laws are rapidly developing and changing. The European Union adopted a comprehensive General Data Protection Regulation ("GDPR"),
which came into effect in May 2018, as supplemented by any national laws (such as the Data Protection Act 2018 in the U.K.) and further
implemented through binding guidance from the European Data Protection Board. In the United States, several states have adopted revised
legislation to expand data breach notification rules and to mirror some of the protections provided by the GDPR. Some states, including
California, Colorado, Connecticut, and Nevada, have adopted data protection legislation that requires companies to make significant changes in
their data processing operations.

 Compliance

 We
have developed and implemented an internal compliance program designed to ensure that we comply with legal and regulatory requirements
imposed on us in connection with our gaming operations. Our internal compliance program focuses, among other things, on ensuring we comply
with applicable licensing requirements and local gaming regulations. In addition, we have a dedicated data protection officer
and compliance officer to strengthen the overall compliance capabilities of the organization.

 Additionally,
we use various methods and tools across our operations such as geolocation blocking, which restricts access based on a user's geographical
location determined through a series of data points such as mobile devices and Wi-Fi networks; age verification to ensure our users are
of a certain age to participate; routine monitoring of user activity; and risk-based user due diligence to ensure player funds are legitimately
derived. We have a zero-tolerance approach to money laundering, terrorist financing, fraud and collusion. All of our games and platforms
are certified and tested by various private accreditation organizations, such as, the New Jersey Division of Gaming Enforcement's
technical testing laboratory and the Gaming Laboratories International, which is a leading industry provider for online gaming testing
and certification.

 While
we are firmly committed to full compliance with all applicable laws and have developed appropriate policies and procedures to comply
with the requirements of the evolving regulatory regimes, we cannot provide assurance that our compliance program will prevent all violations
of applicable laws or regulations, or that a violation by us or our personnel will not result in a monetary fine or suspension or revocation
of one or more of our licenses.

 Social
Responsibility

 We
maintain an open, honest and responsible approach towards our stakeholders, which include our employees, suppliers, customers, investors
and the wider community. As both a B2B provider of games of skill and chance in regulated intrastate internet gaming markets, we have
placed our responsible gaming policies and tools at the core of our vision to provide industry-leading entertainment in a socially responsible
fashion. Our GameSTACK software platform has a myriad of features for detection and prevention of problem gambling as well as offering
tools to end user players to limit their gaming activities online, in compliance with the challenging technical requirements of the U.S.
states we are licensed in, as well as other jurisdictions.

 Our
platform services enable our casino operators to offer their players an array of tools to control their spending, including deposit limits,
wagering value limits, wagering frequency limits, time limits, definable self-exclusion and/or cooling-off periods. These limitations, coupled with
sophisticated reporting and analytics, allows operators to identify potentially compulsive behavior and take the required action to ensure
the protection of any vulnerable players in line with their operating requirements in the relevant intrastate gaming market. Our teams
are extensively trained in the area of responsible gaming, to assist end user players displaying signs of gambling addiction and guide
them in the correct direction to seek assistance. We also, in conjunction with our customers and third-party service partners, provide
robust age verification processes to ensure that no minors can access the gaming opportunities provided on our customer's websites.

 Human
Capital Resources

 We
are committed to investing in our employees while nurturing a work environment that fosters global and cross functional collaboration.
Our leadership team actively works to attract, develop, and retain talent from a range of backgrounds and experiences.

 Our
Global Workforce

 As
of December 31, 2023, we had 677 total employees, of which 673 were full-time and 4 were part-time. Approximately 89% of these employees
were located outside the United States. The majority of our employees are working within the operations function, which includes the
majority of the technical and product employees. The charts below show our global employee population by region and operational function.

 Workforce by Region:

 Europe

 United States

 Latin America

 Rest of World

 Workforce by Function:

 Operations

 %

 Non-operations

 %

 As
we continue to maintain our footprint across multiple countries, we have refocused efforts on building processes and systems that encourage
our employees to adopt a global mindset and ways of working. This refocus means creating more efficient methods for collaborating across
multiple time zones and making the time to hone communication skills to further productive and interactive working relationships. This
effort also translates to offering programs and employees events at a worldwide scale where all employees are able to bond over shared
interests and experiences.

 Diversity
and Inclusion

 We
are committed to a diverse global workforce and fostering a culture of inclusivity and belonging. We promote diversity and inclusion
in all our policies and general business practices. We further seek to establish an
environment of respect and understanding in the workplace and a culture that values and reflects the diverse components of our
employees and the communities in which we operate. This is reinforced in our global employee events and training courses. As we further expand on our global footprint,
we will continue to expand on these efforts.

 Pay
and Benefits

 We
continue to offer market-based, competitive wages and benefits in all markets where we compete for talent. The pay structure has
evolved to be positioned around the market median within each market, with variances based on knowledge, skills, years of
experience, and performance. We regularly evaluate pay equity, expanding our review to include race/ethnicity in addition to gender.
We adopt a total rewards approach to our compensation philosophy – which accounts for all monetary and non-monetary
elements. This includes base wages, non-cash
benefit programs, which vary by country, short-term cash incentives, long-term incentives (e.g., cash and share-based awards),
employee savings plans with providers for company matching, healthcare and insurance benefits (in the United States), health savings
spending accounts with providers for company matching (in the United States), paid time off, leave options, and employee assistance
programs. We also encourage our employees to focus on their overall wellness. We expanded our traditional monthly fitness
reimbursements to include exercise equipment, wellness programs and treatments, and app subscriptions in support of nutrition,
behavior based health or activities that encourage movement. We also respect our employees' needs for flexibility and balance
between work and life. We support a flexible working model where employees may work from the office or from home. We also continue
to offer support to employees who work from home by providing reimbursement for work related expenses.

 Workforce
Health and Safety

 Our employees indicated a need for flexibility in where they work. In response, we moved to a model that adapted to the workplace
culture and working needs per country. For example, in the United States and United Kingdom, we moved to a remote-first working structure
and substantially reduced our office footprint. In Estonia and Bulgaria, employees desire in-office collaboration and are in the office
several days a week based on the team's working schedule.

 Employee
Engagement

 It's
our goal to continue to provide an environment where our employees can be the best versions of themselves and have the support they need
to deliver extraordinary results for themselves and our company. We expanded our employee engagement programming to
accommodate local gatherings where we have a concentrated employee base. For other locales with a much more distributed workforce, virtual
group and team events were offered. We also held several global events to build a sense of company community.

 Information
about Segment and Geographic Revenue

 Our
segment and geographic revenue information is described in Note 13 to the Consolidated Financial Statements in Item 8 of this report.

 Available
information

 We
make available free of charge (other than an investor's own internet access charges) through our internet website (
our Annual Report on Form 10-K and other reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as
reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission ("SEC").
We are not including the information contained on our website as part of or incorporating it by reference into, this Annual Report on
Form 10-K. In addition, the SEC maintains an internet site,  that includes filings of and information about issuers
that file electronically with the SEC.

 ITEM
1A. RISK FACTORS

 Investing
in our common stock involves a high degree of risk. You should carefully consider the risks and information below, as well as all other
information included in this Annual Report on Form 10-K, including our consolidated statements, the notes thereto and the section entitled
"Management's Discussion and Analysis of Financial Condition and Results of Operations," before you decide to purchase
shares of our common stock. Below, we describe risks that we currently believe are the material risks in connection with our operations.
These are not the only risks we face; we are subject to risks that are currently unknown to us, or that we may currently believe are
remote or immaterial. If any of these risks or events occurs, our business prospects, financial condition, stock price, and operating
results could be harmed.

 Summary
of the Material Risks Associated with our Business

 We
 have incurred net losses in the past with negative cash flows and may not be able to generate and sustain profitability or sufficient
 liquidity.

 We
 operate in a rapidly evolving industry and if we fail to successfully develop, market or sell new products or adopt new technology
 platforms, it could materially adversely affect our results of operations and financial condition.

 The
 online gaming industry is highly competitive, and if we fail to compete effectively, we could experience price reductions, reduced
 margins or loss of market share.

 Our
 business operations are subject to substantial variability, which may make it more difficult for us to forecast our financial results,
 and may negatively impact how investors review our results or prospects.

 Under
 our revenue arrangements, if existing customers do not continue the use of our products or services, our results of operations could
 be materially adversely affected.

 We
 have historically relied on a small number of customers for a substantial portion of our revenues.

 A
 reduction in discretionary consumer spending, from an economic downturn or disruption of financial markets or other factors, could
 negatively impact our financial performance.

 Macroeconomic
 conditions can materially adversely affect the Company's business, results of operations and financial condition.

 We
 face the risk of fraud, theft, and cheating.

 We
 face cyber security risks that could result in damage to our reputation and/or subject us to fines, payment of damages, lawsuits
 and restrictions on our use of data.

 Systems
 failures and resulting interruptions in the availability of our websites, applications, products, or services could harm our business.

 We
 rely on relationships with third-party content providers for a significant portion of our revenue.

 If
 we are unable to protect our intellectual property and proprietary rights, our competitive position and our business could be materially
 adversely affected.

 We
 face the risk that third parties will claim that we infringe on their intellectual property rights, which could result in costly
 license fees or expensive litigation.

 We
 face risks related to health epidemics and other widespread outbreaks of contagious disease, which could disrupt our operations and
 impact our operating results.

 We
 are subject to risks related to corporate social responsibility, responsible gaming, reputation and ethical conduct.

 Regulatory approvals of the Merger may not be received, may take longer than expected, or may impose conditions that
could allow SSC to abandon the Merger.

 The Merger Agreement between us, SSC and Merger Sub may be terminated in accordance with its terms and the Merger
may not be completed.

 We may not be able to effect the Merger pursuant to the Merger Agreement, and failure to complete the Merger could
negatively impact our stock price and the future business and financial results of the Company.

 The
 online gaming industry is heavily regulated and the Company's failure to obtain or maintain applicable licensure or approvals,
 or otherwise comply with applicable requirements, could be disruptive to our business and could adversely affect our operations.

 Once
 a gaming license is granted, or conditionally approved, violations of any gaming related requirements could result in the imposition
 of fines, penalties, conditions, or limitations, up to and including the revocation of a gaming license for material and/or repeated
 violations, all of which could adversely affect our operations and financial viability.

 The
 online gaming industry is rapidly expanding and evolving, which the proliferation of new and changing regulatory frameworks increases
 costs and the risk of non-compliance.

 Our
 B2C operations generate a significant portion of our revenue from "unregulated" markets and changes in regulation in
 those markets could result in us losing business in those markets, incurring additional expenses in order to comply with any new
 regulatory scheme, or potentially exiting the market.

 Our
 B2C operations generate a significant portion of our revenue in markets where tax regulations are evolving, and could result in additional
 tax liabilities that could materially affect our financial condition and results of operations.

 Compliance
 with evolving data privacy regulations may cause us to incur additional expenses, and any violation could result in damage to our
 reputation and/or subject us to fines, payment of damages, lawsuits and restrictions on our use of data.

 Any
 violation of the Bank Secrecy Act or other similar anti-money laundering laws and regulations could have a negative impact on us.

 We
 have business operations located in many countries and a significant level of operations outside of the U.S., which subjects us to
 additional costs and risks that could adversely affect our operating results.

 Our
 results of operations may be adversely affected by fluctuations in currency values.

 The
 expansion of our business will subject us to taxation in a number of jurisdictions and changes in, or new interpretation of, tax
 laws, tax rulings or their application by tax authorities could result in additional tax liabilities and could materially affect
 our financial condition and results of operations.

 Ownership
 in our ordinary shares is restricted by gaming laws and our by-laws, and persons found "unsuitable" may be required to
 dispose of their shares.

 We
 are a Bermuda company and it may be difficult for you to enforce judgments against us or certain of our officers.

 Our
 bye-laws restrict shareholders from bringing legal action against our officers and directors and contain provisions that may discourage
 a change in control.

 The
summary risk factors described above should be read together with the text of the full risk factors below and the other information set
forth in this Annual Report on Form 10-K, including our consolidated financial statements and the related notes, as well as in other
documents that we file with the SEC. If any such risks and uncertainties actually occur, our business, prospects, financial condition
and results of operations could be materially and adversely affected. The risks summarized above, or described in full below, are not
the only risks that we face. Additional risks and uncertainties not currently known to us, or that we currently deem to be immaterial
may also materially adversely affect our business, prospects, stock price, financial condition and results of operations.

 Risks
Related to Our Business

 We
have incurred net losses in the past with negative cash flows and may not be able to generate and sustain profitability or sufficient
liquidity.

 Since
our inception, we have typically operated at a loss. At December 31, 2023 we had an accumulated deficit of $309.3 million. We
incurred a net loss of $34.4 million and $197.5 million for the years ended December 31, 2023 and 2022, respectively. Additional
losses would impair our liquidity and may require us to raise additional capital or to curtail certain of our operations in an
effort to preserve capital. Incurring additional losses could also erode investor confidence in our ability to manage our business
effectively and result in a decline in the price of our ordinary shares. See Part II, Item 7, "Management's Discussion
and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources" of this Report and Note
2 – Summary of Significant Accounting Policies in our consolidated financial statements for additional information regarding our
liquidity position.

 We
operate in a rapidly evolving industry and if we fail to successfully develop, market or sell new products or adopt new technology platforms,
it could materially adversely affect our results of operations and financial condition.

 Our
success depends in part on our ability to keep pace with continuing changes in technology. Our GameSTACK platform and other software
products compete in a market characterized by rapid technological advances, evolving standards in software technology and frequent new
product introductions and enhancements that may render existing products and services obsolete. Competitors and operators are continuously
upgrading their product offerings with new features, functions and gaming content. In addition, we continuously refine our software and
technology platform to address regulatory changes in the markets in which we operate or plan to operate. In order to remain competitive,
we will need to continuously modify and enhance our technology platform and service offerings.

 We
cannot assure you that we will be able to respond to rapid technological changes in our industry. In addition, the introduction of new
products or updated versions of existing products has inherent risks, including, but not limited to, risks concerning:

 product
 quality, including the possibility of software defects, which could result in claims against us or the inability to sell our software
 products;

 the
 accuracy of our estimates of customer demand, and the fit of the new products and features with customers' needs;

 the
 need to educate our sales, marketing and services personnel to work with the new products and features, which may strain our resources
 and lengthen sales cycles;

 market
 acceptance of initial product releases; and

 competitor
 product introductions, in-house customer solutions or regulatory changes that render our new products obsolete.

 Because
we commit substantial resources to developing new software products and services, if the markets for these new products or services do
not develop as anticipated, or demand for our products and services in these markets does not materialize or materializes later than
we expect, we will have expended substantial resources and capital without realizing sufficient offsetting or resulting revenue, and
our business and operating results could be materially adversely affected. Developing, enhancing and localizing software is expensive,
and the investment in product development may involve a long payback cycle. Our future plans include significant additional investments
in development of our software and other intellectual property. We believe that we must continue to dedicate a significant amount of
resources to our development efforts to maintain our competitive position. However, we may not receive significant revenue from these
investments for several years, if at all. In addition, as we or our competitors introduce new or enhanced products, the demand for our
products, particularly older versions of our products may decline.

 The
online gaming industry is highly competitive, and if we fail to compete effectively, we could experience price reductions, reduced margins
or loss of market share.

 The
online gaming industry is highly competitive. A number of companies offer products that are similar to our products and target the same
markets as we do. Certain of our current and potential competitors have longer operating histories, significantly greater financial,
technical and marketing resources, greater name recognition, broader or more integrated product offerings, larger technical staffs and
a larger installed customer base than we do. These competitors may be able to respond more quickly to new or emerging technologies and
changes in customer requirements, develop superior products, and devote greater resources to the development, promotion and sale of their
products than we can.

 Because
of the rapid growth of our industry, and the relatively low capital barriers to entry in the software industry, we expect additional
competition from other established and emerging companies. Some of our customers are land-based casinos that use our GameSTACK platform
for rapid access to the online iGaming and sports betting markets. As these customers become more experienced or successful they may
look to develop their own proprietary solutions or may look more aggressively at competing platforms. Additionally, our competitors could
combine or merge to become more formidable competitors or may adapt more quickly than we can to new technologies, evolving industry trends
and changing customer requirements. If we fail to compete effectively, (a) we could be compelled to reduce prices in order to be competitive,
which could reduce margins and profitability, or (b) we would lose market shares either of which could materially adversely affect our
strategy, our business, results of operations and financial condition.

 Our
business operations are subject to substantial variability, which may make it more difficult for us to forecast our financial results,
and may negatively impact how investors review our results or prospects.

 Our
B2B revenues are generated from our SIM and RMiG customers which are casino operators, primarily in the United States. Our business growth
is substantially dependent on new customer launches in existing markets and customer launches in new markets. Each of these transactions
can have a significant impact both on our revenue and expenses. The process for each of these transactions is complex involving sales
cycles, licensing requirements, product planning and development and marketing coordination. The success of our efforts to secure a new
customer, obtain the necessary licensing and launch in a new market can have a significant impact on our financial position and results
of operations. Any failure or delay could cause our revenue or operating results to differ substantially from our operating budget, guidance
or analysts' expectations. It could also render period to period analysis of our operating results more difficult, leading to an
increased risk of volatility in the trading price of our ordinary shares.

 Our
B2C revenue is generated primarily from its sportsbook operations in Northern Europe, Latin America and other international markets.
Our B2C revenues can vary depending on seasonality of sporting events and our profitability can be affected by event-specific outcomes
outside of our control. Following the consummation of the Coolbet acquisition, we have been operating under a new business model, an
enhanced technology platform, new product offerings and an expanded base of customers and markets. Accordingly, it may be more difficult
for us to forecast our future financial results and there may be an increased risk that our actual results of operations may vary materially
from any guidance that we provide. Our more complex business model and offerings may also make it more difficult for analysts to assess
our future prospects. Should our future operating results fall below any future guidance that our management may issue or any third-party
analyst reports or consensus, it could negatively affect investors' perceptions, which could decrease demand for our ordinary shares
or result in increased volatility in the trading price of our ordinary shares.

 Under
our revenue arrangements, if existing customers do not continue the use of our products or services, our results of operations could
be materially adversely affected.

 In
our B2B segment, we generate revenue under contracts with casino operators that contemplate ongoing revenue arrangements that depend
in part on the revenues of casino operators. The success of our business depends on our ability to retain our existing installed base
of customers and to increase the scale of gaming and transactions that they run on our platform. We may experience the loss of a customer
if the customer determines to close its operations, elects to develop its own online platform, or elects to contract with one of our
competitors. In addition, casino operators that utilize our Super RGS platform may choose to contract directly with content providers.
Such events could materially and adversely affect our revenues.

 If
our customers terminate their contracts with us, we will incur a reduction in revenue unless we are able to secure new customers in amounts
sufficient to offset the loss. The sales cycle for our platform can be long, and there are no assurances that we will be able to rapidly
replace the loss of a significant customer. A substantial portion of our expenses are fixed, and a loss of revenue would have a material
adverse impact on our profitability and our financial position.

 We
have historically relied on a small number of customers for a substantial portion of our revenue.

 For
the years ended December 31, 2023 and 2022, our largest customer FanDuel accounted for 16.4% and 20.9%, respectively, of our total revenue.
Our revenues from FanDuel in our B2B segment increased in 2022 with FanDuel's expansion into Ontario, Canada, but our revenues
may experience a significant decline in future periods as our rights as their exclusive provider of casino gaming operations ended in
January of 2023. Customer concentration in our B2B segment will tend to be more pronounced as we expand our revenue from a smaller base.

 Our
business strategy encompasses securing a diverse customer base including attempting to expand the amount of business with our current
customers and expand into new customer accounts as we enter new geographic markets. While our 2021 acquisition of Coolbet substantially
diversified our customer base, we operate in a dynamic industry, in which regulatory restrictions and enabling technologies are changing
rapidly. As such, certain of our customers may experience more rapid growth than other customers, resulting in a concentration of revenue
from time to time in one or a few significant customers.

 At
any time that we experience significant customer concentration, the loss of a key customer, for any reason, would have a significant
impact on our revenue, our ability to fund operating expenses, and our financial position. In addition, the loss of any material customer
could significantly decrease our market share and harm our reputation, which could affect our ability to grow and take advantage of new
markets, access resulting data from such markets, and secure funding to invest into development of new products.

 Our
B2C sports betting operations exposes us to losses as a result of a failure to determine accurately the odds in relation to any particular
event and/or any failure of its sports risk management processes, or if outcome-driven events result in unfavorable results.

 Our
fixed-odds wagering contracts involve betting where winnings are paid on the basis of the amount wagered and the odds quoted. Our sports
betting operation is designed to set odds at a level that will provide the bookmaker with an average return over a large number of events.
However, there can be significant variation in the gross win percentage for a single event or fixed period of time.

 Our
systems and controls seek to reduce the risk of daily losses occurring on a gross-win basis, but there can be no assurance that these
controls will be effective in all situations, and consequently we face exposure to risks relating to its failure to set accurate odds
or managing its sports betting risk. We may experience significant losses with respect to individual events or betting outcomes, in particular
if large individual bets are placed on an event or outcomes that create disproportionate weighting to such outcomes on the events.

 Odds
compilers and risk managers are capable of human error, thus even allowing for the fact that a number of betting products are subject
to capped pay-outs, significant volatility can occur. Any significant losses could have
a material adverse effect on our business, financial condition and results of operations.

 A
reduction in discretionary consumer spending, from an economic downturn or disruption of financial markets or other factors, could negatively
impact our financial performance.

 iGaming
and sports betting that we and our customers offer represent discretionary expenditures. Players' participation in those activities
may decline if discretionary consumer spending declines, including during economic downturns, when consumers generally earn less disposable
income. Changes in discretionary consumer spending or consumer preferences are driven by factors beyond our control, such as:

 perceived
 or actual general economic conditions;

 fears
 of recession and changes in consumer confidence in the economy;

 high
 energy, fuel and other commodity costs;

 the
 potential for bank failures or other financial crises;

 a
 soft job market;

 an
 actual or perceived decrease in disposable consumer income and wealth;

 increases
 in taxes, including gaming taxes or fees; and

 terrorist
 attacks or other global events.

periods of economic contraction, our revenues may decrease while most of our costs remain fixed and some costs even increase, resulting
in decreased earnings.

 Macroeconomic
conditions can materially adversely affect the Company's business, results of operations and financial condition.

 Recent
adverse macroeconomic conditions, including inflation, higher interest rates, slower growth or recession, the strengthening of the U.S.
dollar, and corresponding currency fluctuations can have an adverse material impact on the Company's future results of operations,
cash flows, and financial condition, particularly with respect to foreign currency adjustments relating to our international operations.
Such conditions may also affect consumers' willingness to make discretionary purchases, and therefore the Company, along with its
casino operator customers, may experience a decline in wagering. A downturn in the economic environment can also lead to increased credit
and collectability risk on the Company's trade receivables, limitations on the Company's ability to issue new debt, and reduced
liquidity.

 We
face the risk of fraud, theft, and cheating.

 We
face the risk that players may attempt or commit fraud or theft or cheat in order to increase winnings. Such risks include stolen credit
or charge cards and hacked or stolen customer accounts. Failure to discover such acts or schemes in a timely manner could result in losses
in our operations. Negative publicity related to such acts or schemes could have an adverse effect on our reputation, potentially causing
a material adverse effect on our business.

 We
face cyber security risks that could result in damage to our reputation and/or subject us to fines, payment of damages, lawsuits and
restrictions on our use of data.

 We
rely extensively on computer systems to process transactions, maintain information and manage our businesses. In addition, our business
involves the collection, storage, processing, and transmission of end users' personal data, including financial information and
information about how they interact with our games and platform. We have built our reputation, in part, on the sophistication and security
of our payment and financial processing.

 Our
industry is prone to cyber-attacks by third parties seeking unauthorized access to our information systems and data or to disrupt our
ability to provide service. Our information systems and data, including those we maintain with our third-party service providers, may
be subject to cyber security breaches in the future. Computer programmers and hackers may be able to penetrate our network security and
misappropriate, copy or pirate our confidential information or that of third parties, create system disruptions or cause interruptions
or shutdowns of our internal systems and services. Our website may become subject to denial of service attacks, where a website is bombarded
with information requests eventually causing the website to overload, resulting in a delay or disruption of service. Computer programmers
and hackers also may be able to develop and deploy viruses, worms and other malicious software programs that attack our products or otherwise
exploit any security vulnerabilities of our products. Also, there is a growing trend of advanced persistent threats being launched by
organized and coordinated groups against corporate networks to breach security for malicious purposes.

 Disruptions
in the availability of our computer systems, through cyber-attacks or otherwise, could damage our computer or telecommunications systems,
impact our ability to service our customers, adversely affect our operations and the results of operations, and have an adverse effect
on our reputation. The costs to us to eliminate or alleviate security problems, bugs, viruses, worms, malicious software programs and
security vulnerabilities could be significant, and the efforts to address these problems could result in interruptions, delays, cessation
of service and loss of existing or potential customers and may impede our sales, distribution and other critical functions. Although
we plan to continuously develop systems and processes to protect our information systems and data, we cannot assure you that such measures
will provide absolute security, that we will be able to react in a timely manner, or that our remediation efforts will be successful.
We may also be subject to regulatory penalties and litigation by customers and other parties whose information has been compromised,
all of which could have a material adverse effect on our business, reputation, results of operations and cash flows.

 Systems
failures and resulting interruptions in the availability of our websites, applications, products, or services could harm our business.

 The
full-time availability and expeditious delivery of our products and services is a critical part of our solution offering to our consumers.
Our systems may experience service interruptions or degradation because of hardware and software defects or malfunctions, distributed
denial-of-service and other cyberattacks, human error, earthquakes, hurricanes, floods, fires, and other natural disasters, power losses,
disruptions in telecommunications services, fraud, military or political conflicts, terrorist attacks, computer viruses or other malware,
or other events. Some of our systems are not fully redundant, and our disaster recovery planning may not be sufficient for all eventualities.
In addition, as a provider of payments solutions, we are subject to heightened scrutiny by regulators that may require specific business
continuity, resiliency and disaster recovery plans, and more rigorous testing of such plans, which may be costly and time-consuming and
may divert our resources from other business priorities.

 We
also rely on facilities, components, and services supplied by third parties, including data center facilities and cloud storage services.
If these third parties cease to provide the facilities or services, experience operational interference or disruptions, breach their
agreements with us, fail to perform their obligations and meet our expectations, or experience a cybersecurity incident, our operations
could be disrupted or otherwise negatively affected, which could result in customer dissatisfaction and damage to our reputation and
brands, and materially and adversely affect our business. We do not carry business interruption insurance sufficient to compensate us
for all losses that may result from interruptions in our service as a result of systems failures and similar events.

 A
prolonged interruption in the availability or reduction in the availability, speed, or functionality of our products and services will
result in a loss of revenue and could materially harm our business. Frequent or persistent interruptions in our services could cause
current or potential customers to believe that our systems are unreliable, leading them to switch to our competitors or to avoid or reduce
the use of our products and services, and could permanently harm our reputation and brands. Moreover, if any system failure or similar
event results in damages to our customers or their business partners, these customers or partners could seek significant compensation
or contractual penalties from us for their losses, and those claims, even if unsuccessful, would likely be time-consuming and costly
for us to address.

 We
have experienced significant non-cash impairment charges to our goodwill and other intangible assets, which may affect our results of
operations in the future.

is reviewed for impairment annually, or more frequently if an event occurs or circumstances change that may indicate that fair value
of our reporting units may be below their carrying value. We determine fair value considering both the income and market approaches.
Definite-lived intangible assets are evaluated for impairment if an event or change occurs such that the carrying amount may not be recoverable.
We completed a significant acquisition which has resulted in significant amounts of goodwill and other intangible assets on our balance
sheet, of which we recognized a total impairment to (i) goodwill ($136.9 million), (ii) intangible assets ($19.1 million), and (iii)
capitalized software development costs ($10.0 million) during the year ended December 31, 2022. These non-cash charges significantly
affected our results of operations. Unfavorable changes in the business climate or competitive environment, our revenue forecasts, our
market capitalization, capital structure, capital expenditure levels, operating cash flows, as well as adverse legal or regulatory actions
or developments could cause material impairments to the carrying value of our intangible assets or intangible assets we may obtain in
future periods.

 We
rely on relationships with third-party content providers for a significant portion of our revenue.

 We
currently license gaming content from third-party software providers for inclusion in our online games and content offerings. We license
these rights to provide our customers with access to online versions of popular casino-based games, reduce our development costs, to
expand our content offerings and to shorten our time to market with new products and solutions. Our B2B business model is predicated
on sharing revenue with our casino operators. If we were to lose access to popular game titles and content, our casino operators may
experience a decline in wagering, reducing their revenue and ours. We could be compelled to pay higher prices for licenses, or incur
increased expenses in an effort to develop our proprietary content, but there are no guarantees that we would be successful in either
approach. The loss of compelling content could also make our solution and product offering less competitive, and our operators'
customers may look for alternative vendors with access to different content.

 In
addition, a significant portion of customers are introduced to us by our network of content manufacturers. These content manufacturers
include casino equipment manufacturers and casino gaming content designers, which do not manufacture physical gaming equipment. We may
experience difficulty in maintaining or establishing third-party relationships with our content manufacturers. If we are unable to maintain
good relations with our content manufacturers, our ability to organically grow our business could be harmed, which may materially adversely
affect operating results and financial condition. Additionally, we are exposed to the risk that the content manufacturers through which
we indirectly promote our products and services will not devote sufficient time, attention and resources to learning our products, markets
and potential customers and may promote and sell competing products and services.

 If
we are unable to protect our intellectual property and proprietary rights, our competitive position and our business could be materially
adversely affected.

 The
iGaming and online sports betting industries are subject to rapid technological change and we and a number of our competitors are developing
technology and intellectual property that we believe is unique and provides us with a commercial advantage. We regard the protection
of our developed technologies and intellectual property rights as a competitive differentiation and an important element of our business
operations and crucial to our success. Unauthorized use of our intellectual property and proprietary rights may reduce our revenue, devalue
our brands and property and harm our reputation.

 We
rely primarily on a combination of patent laws, trademark laws, copyright laws, trade secrets, confidentiality procedures and contractual
provisions to protect our proprietary technology. As of December 31, 2023, we held one issued U.S. patent (patent number 8,821,296 dated
September 2, 2014) with multiple claims within that single patent. We generally require our employees, consultants and advisors to enter
into invention contribution and confidentiality agreements. Our efforts to protect our proprietary rights may not be adequate to prevent
misappropriation of our intellectual property. We may not be able to detect unauthorized use of, or take appropriate steps to enforce,
our intellectual property rights. Further, the laws of many countries, including countries where we conduct business, do not protect
our proprietary rights to as great an extent as do the laws of the United States and European countries. The failure of our patent, or
our reliance upon copyright and trade secret laws to adequately protect our technology, might make it easier for our competitors to offer
similar products or technologies.

 We
may in the future need to initiate infringement claims or litigation. Litigation can be expensive and time-consuming and may divert the
efforts of our technical staff and managerial personnel, which could harm our business. In addition, litigation is inherently uncertain,
and thus we may not be able to stop our competitors from infringing upon our intellectual property rights.

 We
face the risk that third parties will claim that we infringe on their intellectual property rights, which could result in costly license
fees or expensive litigation.

 While
we respect third parties' intellectual property rights and have procedures designed to avoid the inadvertent use of third-party
intellectual property, we may face claims from our competitors that the products or solutions that we develop, or those provided to us
by third parties or used by our customers, infringe on third parties' intellectual property rights. Some of our competitors have
substantially greater resources than we do and are able to sustain the costs of complex intellectual property litigation to a greater
degree and for longer periods of time than we could. In addition, patent holding companies that focus solely on extracting royalties
and settlements by enforcing patent rights may target us.

 Any
such claim may seek to prohibit our use of the third-party's intellectual property rights or may require us to obtain licenses
from the holders of the patents or other intellectual property rights. We cannot assure you that we will be able to obtain any such licenses
on commercially favorable terms, or at all. If we do not obtain such licenses, we could, for example, be required to cease or materially
alter our product offerings and our business, operating results and financial condition could be materially adversely affected.

 Future
litigation may be necessary to defend ourselves, our customers or our partners by determining the scope, enforceability and validity
of third-party proprietary rights or to establish our proprietary rights. Regardless of whether the infringement claims have any merit,
defense of intellectual property litigation is time-consuming, costly to evaluate and defend, and could:

 adversely
 affect our relationships with our current or future customers or partners;

 cause
 delays or stoppages in providing new sales of our products;

 cause
 us to have to cease use of certain technology or products;

 require
 technology changes that would cause us to incur substantial cost;

 require
 us to enter into royalty or licensing agreements on unfavorable terms; and

 divert
 management's attention and resources.

 In
addition, many of our contracts provide our customers or partners with indemnification with respect to their use of our intellectual
property. We cannot predict whether any existing or future third-party intellectual property rights would require us to alter our technologies,
obtain licenses or cease certain activities.

 We
face risks related to health epidemics and other widespread outbreaks of contagious disease, which could disrupt our operations and impact
our operating results.

 Significant
outbreaks of contagious diseases, and other adverse public health developments, could have a material impact on our business operations
and operating results.

 The
impact of public health threats or outbreaks of communicable diseases is uncertain. Although our business proved resilient during the
COVID-19 pandemic, it is uncertain whether this trend will continue, as the economic disruption and uncertainty caused by the COVID-19
pandemic may be repeated in the event of future severe outbreaks or variants. In the event of a public health crisis, government authorities
may, from time to time, implement various mitigation measures, including travel restrictions, limitations on business operations, stay-at-home
orders and social distancing protocols. Any prolonged deviations from normal daily operations could negatively impact our business. Additionally,
any prolonged disruption of our content providers, customers, players or regulatory reviewers could delay regulatory approvals or conclusions
related to new products or the finalization of new contracts entered into by us.

 We
are subject to risks related to corporate social responsibility, responsible gaming, reputation and ethical conduct.

 Many
factors influence our reputation and the value of our brands, including the perception held by our customers, business partners, investors,
other key stakeholders and the communities in which we operate, such as our social responsibility, corporate governance and responsible
gaming practices. We have faced, and will likely continue to face, increased scrutiny related to social, governance and responsible gaming
activities, and our reputation and the value of our brands can be materially adversely harmed if we fail to act responsibly in a number
of areas, such as diversity and inclusion, workplace conduct, responsible gaming, human rights, philanthropy and support for the local
communities. Any harm to our reputation could impact employee engagement and retention, and the willingness of customers and partners
to do business with us, which could have a materially adverse effect on our business, results of operations and cash flows.

 We
believe that our reputation is critical to our role as a leader in the online gaming industry and as a publicly traded company. Our Board
has adopted a Code of Business Conduct as well as other related policies and procedures, and management is heavily focused on the integrity
of our directors, officers, senior management, employees, other personnel and third-party suppliers and partners. Illegal, unethical
or fraudulent activities perpetrated by any of such individuals, suppliers or partners for personal gain could expose us to potential
reputational damage and financial loss.

 Risks
Related to the Merger

 Regulatory
approvals of the Merger may not be received, may take longer than expected, or may impose conditions that could allow Sega to abandon
the Merger.

 Before
the Merger may be completed, various regulatory approvals must be obtained from a number of relevant gaming authorities. In determining
whether to grant these approvals, such regulatory authorities consider a variety of factors, including the regulatory standing of each
party. These approvals could be delayed or not obtained at all due to a number of factors considered by regulators when granting such
approvals or the political environment generally.

 The
approvals that are granted may impose terms and conditions, limitations, obligations or costs, or place restrictions on the conduct of
Sega's or the combined company's business. There can be no assurance that regulators will not impose any such conditions, limitations,
obligations or restrictions and that such conditions, limitations, obligations or restrictions will not have the effect of delaying the
completion of any of the transactions contemplated by the Merger Agreement, or result in the delay or abandonment of the Merger. Additionally,
the completion of the Merger is conditioned on the absence of certain orders, injunctions or decrees by any court or regulatory agency
of competent jurisdiction that would prohibit or make illegal the completion of any of the transactions contemplated by the Merger Agreement.

 The
Merger Agreement between us, Sega and Merger Sub may be terminated in accordance with its terms and the Merger may not be completed.

 The
Merger Agreement is subject to a number of conditions which must be fulfilled in order to complete the Merger. Those conditions include,
among other things: (i) approval by our shareholders of the Merger and Merger Agreement (which occurred on February 13, 2024); (ii) the
receipt of applicable regulatory gaming authorities and other authorities; (iii) the absence of any order, injunction, decree or other
legal restraint preventing the consummation of the Merger or any of the other transactions contemplated by the Merger Agreement or making
the completion of the Merger or any of the other transactions contemplated by the Merger Agreement illegal; (iv) that Chile does not
enact any law (which is not reasonably capable of being overturned or complied with) that renders our online gaming operations illegal
in that country, and (v) the accuracy of the Company's representations and warranties contained in the Merger Agreement (subject to certain
customary qualifications) and compliance by the Company with its agreements and covenants contained in the Merger Agreement.

 These
conditions to the closing may not be fulfilled in a timely manner or at all, and, accordingly, the Merger may not be completed. In addition,
the parties can mutually decide to terminate the Merger Agreement at any time, before or after the requisite shareholder approvals, Sega
may terminate the Merger Agreement if applicable gaming regulatory authorities impose restrictions or impositions that would have a material
adverse effect on Sega's or the combined company's business, or we or Sega may elect to terminate the Merger Agreement in certain other
circumstances.

 We
may not be able to effect the Merger pursuant to the Merger Agreement, and failure to complete the Merger could negatively impact our
stock price and the future business and financial results of the Company.

 In
connection with the Merger Agreement, we have incurred substantial costs planning and negotiating the transaction. These costs include,
but are not limited to, costs associated with employing and retaining third-party advisors who performed the financial, auditing, and
legal services required before we were able to enter into the Merger Agreement and which will continue as we seek to complete the transaction.
If, for whatever reason, including those set forth above, the transactions contemplated by the Merger Agreement fail to close, we will
be responsible for these costs, which could adversely affect our liquidity and financial results.

 Our
stock price may decline significantly if the Merger is not completed. If the Merger is not completed, our ongoing business may be adversely
affected and the Company will be subject to a number of risks, including the following:

 We
 may be required to pay a termination fee of $6.0 million if the Merger Agreement is terminated under certain circumstances;

 We
 will be required to pay certain costs relating to the Merger, such as legal, accounting, financial advisor and printing fees whether
 or not the Merger is completed;

 Matters
 relating to the Merger may require substantial commitments of time and resources by our management, which could otherwise have been
 devoted to other opportunities that may have been beneficial to us; and

 Our
 customers, prospective customers, collaborators and other business partners and investors in general may view the failure to consummate
 the Merger as a poor reflection on our business or prospects.

 Risks
Related to Regulation

 The
online gaming industry is heavily regulated and the Company ' s failure to obtain or maintain applicable licensure
or approvals, or otherwise comply with applicable requirements, could be disruptive to our business and could adversely affect our operations.

 We
and our officers, directors, major shareholders, key employees and business partners are generally subject to the laws and regulations
relating to online gaming of the jurisdictions in which we conduct business, as well as the general laws and regulations that apply to
all e-commerce businesses, such as those related to privacy and personal information, tax and consumer protection. With each new regulated
market we enter, we are generally required to secure a gaming license. These laws and regulations vary from one jurisdiction to another
and future legislative and regulatory action, court decisions or other governmental action, which may be affected by, among other things,
political pressures, attitudes and climates, as well as personal biases, may have a material impact on our operations and financial results.

 Gaming
authorities have broad discretion in determining whether to grant, or not to grant, a gaming license and/or whether to impose conditions
or limitations upon such gaming license. The process of submitting applications may be expensive and time-consuming and the outcome is
not assured. Regulatory regimes imposed upon gaming providers vary by jurisdiction. Typically, however, most regulatory regimes include
the following elements:

 the
 opportunity to apply for one or more gaming licenses for one or more categories of products, whether as part of a general round of
 license issuance (for example, Spain) or as and when the applicant chooses to apply;

 a
 requirement for gaming license applicants to make detailed and extensive disclosures as to their beneficial ownership, their source
 of funds, the probity and integrity of certain persons associated with the applicant, the applicant's management competence
 and structure and business plans, the applicant's proposed geographical territories of operation and the applicant's
 ability to operate a gaming business in a socially responsible manner in compliance with applicable laws and regulations;

 interviews
 and assessments by the relevant gaming authority intended to inform a regulatory determination of the suitability of applicants for
 gaming licenses;

 assessments
 by the relevant gaming authority intended to inform a regulatory determination of the continued suitability of gaming license holders;

 ongoing
 reporting and disclosure obligations, both on a periodic and ad hoc basis in response to material issues affecting the business;

 the
 testing and certification of software and systems, generally designed to confirm such things as the fairness of the gaming products
 offered by the business, their genuine randomness and ability accurately to generate settlement instructions and recover from outages;

 the
 need to account for applicable gaming duties and other taxes and levies, such as fees or contributions to bodies that organize the
 sports on which bets are offered, as well as contributions to the prevention and treatment of problem gaming; and

 social
 responsibility obligations.

 If
we fail to obtain the necessary gaming license in a given jurisdiction, we would likely be prohibited from distributing and providing
our product offerings in that particular jurisdiction altogether. If we fail to seek, do not receive, or receive a suspension or revocation
of a license in a particular jurisdiction for our product offerings (including any related technology and software) then we cannot offer
the same in that jurisdiction and our gaming licenses in other jurisdictions may be impacted. Furthermore, some jurisdictions require
license holders to obtain government approval before engaging in some transactions, such as business combinations, reorganizations, share
offerings and repurchases. We may not be able to obtain all necessary gaming licenses in a timely manner, or at all. Delays in regulatory
approvals or failure to obtain such approvals may also serve as a barrier to entry to the market for our product offerings. If we are
unable to overcome the barriers to entry, it will materially affect our results of operations and future prospects.

 To
the extent new online gaming jurisdictions are established or expanded, we cannot guarantee we will be successful in penetrating such
new jurisdictions or expanding our business or customer base in line with the growth of existing jurisdictions.

 As
we directly or indirectly enter into new markets, we may encounter legal, regulatory and political challenges that are difficult or impossible
to foresee and which could result in an unforeseen adverse impact on planned revenues or costs associated with the new market opportunity.
If we are unable to effectively develop and operate directly or indirectly within these new markets or if our competitors are able to
successfully penetrate geographic markets that we cannot access or where we face other restrictions, then our business, operating results
and financial condition could be impaired. Our failure to obtain or maintain the necessary regulatory approvals in jurisdictions, whether
individually or collectively, would have a material adverse effect on our business.

 Once
a gaming license is granted violations of any gaming related requirements could result in the revocation of a gaming license, the imposition
of fines, conditions, or limitations, all of which could adversely affect our operations and financial viability.

 Once
we have been granted a gaming license, we are required to comply with the applicable statutory and/or regulatory requirements, policy
directives, and license conditions and/or limitations. Failure to comply with any of such, could result in a gaming regulator bringing
a disciplinary action against us. We have previously been assessed fines related to failure to comply with license conditions and codes
of practice. We cannot predict the outcome of any current or future regulatory review.

 Disciplinary
action could range from the imposition of fines, further conditions or limitations imposed upon the gaming license, to the revocation
of previously granted gaming licenses. The imposition of any such disciplinary actions could adversely affect our operations in that
jurisdiction and its financial viability. Further, the disciplinary action in one jurisdiction could result in separate disciplinary
action being brought by another gaming regulator, which could further adversely affect our operations in those jurisdictions and its
financial viability.

 The
online gaming industry is rapidly expanding and evolving, which the proliferation of new and changing regulatory frameworks increases
costs and increases the risk of non-compliance.

 The
online gaming and interactive entertainment industries are relatively new and continue to evolve. As additional jurisdictions initiate
regulation, legal and regulatory developments (such as passing new laws or regulations or extending existing laws or regulations to online
gaming and related activities), taxation of gaming activities, data and information privacy, anti-money laundering and 'know your
customer' laws and regulations, and payment processing laws and regulations, are continuing to evolve in ways we are unable to
predict and which are beyond our control.

 Given
the dynamic evolution of these industries, it can be difficult to plan strategically, including as it relates to product launches in
new or existing jurisdictions, which may be delayed or denied, and it is possible that competitors will be more successful than us at
adapting to change and pursuing business opportunities. Additionally, as the online gaming industry advances, including with respect
to regulation in new and existing jurisdictions, we will become subject to additional compliance-related costs, including regulatory
infractions, licensing and taxes. Consequently, we cannot provide assurance that our online and interactive offerings will grow at the
rates expected or be successful in the long term.

 Our
B2C operations generate a significant portion of its revenues from " unregulated " markets and
changes in regulation in those markets could result in us losing business in those markets, incurring additional expenses in order to
comply with any new regulatory scheme, or potentially exiting the market.

 Our
B2C operations currently generate a significant portion of its revenues in markets that currently do not have a local licensing scheme,
including Latin America and Northern Europe. Certain of those markets, or other markets where we may operate in the future, are in the
process of developing regulations that require registration and regulatory compliance or could do so in the near term. The adoption of
regulations and licensing requirements may increase costs, reduce net gaming revenue or require us to cease operations depending on the
range of unforeseen developments in proposed rules and regulations governing online gaming in the international markets in which we currently
operate.

 Our
B2C operations generate a significant portion of our revenue in markets where tax regulations are evolving, and could result in additional
tax liabilities that could materially affect our financial condition and results of operations.

 Our
B2C operations currently generate a significant portion of its revenues in markets that have evolving tax legislation, including Latin
America and Canada. Those markets, or other markets where we may operate in the future are actively considering or could adopt regulations
that adversely affect our operations. The adoption of tax regulations may increase costs, reduce net gaming revenue or require us to
cease operations depending on the range of unforeseen possible changes to the statutes governing online gaming in the international markets
in which we currently operate.

 Compliance
with evolving data privacy regulations may cause us to incur additional expenses, and any violation could result in damage to our reputation
and/or subject us to fines, payment of damages, lawsuits and restrictions on our use of data.

 We
collect and process information relating to our employees, our customer operators, our customers' end user players, and others
for various business purposes, including payment processing, marketing and promotional purposes. The collection and use of personal data
are governed by privacy laws and regulations enacted by the various U.S. states, and other jurisdictions around the world. Privacy laws
and regulations continue to evolve and on occasion may be inconsistent between jurisdictions. Various federal, state and foreign legislative
or regulatory bodies may enact or adopt new or additional laws and regulations concerning privacy, data retention, data transfer, and
data protection. For example, the European Union has adopted a data protection regulation known as the General Data Protection Regulation,
or "GDPR", which became fully enforceable in May 2018, that includes operational and compliance requirements with significant
penalties for non-compliance. In addition, California has enacted a new privacy law, known as the California Consumer Privacy Act of
2018, which became effective in 2020 and provides some of the strongest privacy requirements in the United States.

 Compliance
with applicable privacy laws and regulations may increase our operating costs and/or adversely impact our ability to provide and market
our products, properties and services. In addition, non-compliance with applicable privacy laws and regulations by us (or in some circumstances
non-compliance by third parties engaged by us), including accidental loss, inadvertent disclosure, unapproved dissemination or a breach
of security on systems storing our data may result in damage to our reputation and/or subject us to fines, payment of damages, lawsuits
or restrictions on our use or transfer of data. We rely on proprietary and commercially available systems, software, and tools to provide
security for processing of customer and employee information, such as payment card and other confidential or proprietary information.
Our data security measures are reviewed and evaluated regularly; however, they might not protect us against increasingly sophisticated
and aggressive threats including, but not limited to, computer malware, viruses, hacking and phishing attacks by third parties.

 Any
violation of the Bank Secrecy Act or other similar anti-money laundering laws and regulations could have a negative impact on us.

 Our
operations are subject to reporting and anti-money laundering ("AML") regulations in various jurisdictions. In recent years,
governmental authorities have been increasingly focused on AML policies and procedures, with a particular focus on the gaming industry.
Any violation of AML laws or regulations could result in fines, administrative expenses, and have a negative effect on our business reputation,
ability to secure and retain gaming licenses, and have a negative effect on our results of operations.

 We
have identified a material weakness in connection with our internal control over financial reporting which, if not remediated, could
adversely affect our business, reputation and stock price.

 As
previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022, material weaknesses were identified in
the Company's internal control over financial reporting. A material weakness is a deficiency or combination of deficiencies, in
internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company's
interim or annual condensed consolidated financial statements will not prevented or detected on a timely basis.

the course of management's prior year-end procedures, the Company's management and the audit committee of the board of
directors identified deficiencies in the design of the control environment whereby certain finance users were granted "super
user" access and security administration rights to the financial reporting systems, the activity of these users with elevated
access were not actively monitored, and no segregation of duties over journal entry preparation and approval within the B2C segment
existed and determined that these deficiencies constituted a material weakness. While the Company has actively begun to implement
controls to remediate the material weakness, this material weakness has not been resolved as of December 31, 2023. We can give no assurance that these measures will remediate the remaining material weakness in internal control,
or that additional material weaknesses or significant deficiencies in our internal control over financial reporting will not be identified
in the future. Our failure to implement and maintain effective internal control over financial reporting could result in errors in our
financial statements that may lead to additional restatements of our financial statements or cause us to fail to meet our reporting obligations.
Any such failure could also lead to reputational damage and a decrease in the market price of our stock.

 Risks
Related to our International Operations

 We
have business operations located in many countries and a significant level of operations outside of the U.S., which subjects us to additional
costs and risks that could adversely affect our operating results.

 A
significant portion of our customer base and operations are located outside of the United States. Compliance with international and U.S.
laws and regulations that apply to our international operations increases our cost of doing business. As a result of our international
operations, we are subject to a variety of risks and challenges in managing an organization operating in various countries, including
those related to:

 challenges
 caused by distance as well as language and cultural differences;

 general
 economic conditions in each country or region;

 regulatory
 changes;

 political
 unrest, terrorism and the potential for other hostilities;

 public
 health risks, particularly in areas in which we have significant operations;

 longer
 payment cycles and difficulties in collecting accounts receivable;

 overlapping
 or changes in tax regimes;

 difficulties
 in transferring funds from certain countries;

 laws
 such as the U.K. Bribery Act 2010 and the U.S. Foreign Corrupt Practices Act, and local laws which also prohibit corrupt payments
 to governmental officials; and

 reduced
 protection for intellectual property rights in some countries.

 If
we are unable to effectively staff and manage our global operations, we may not realize, in whole or in part, the anticipated benefits
from our international operations which in turn could materially adversely affect our business, financial condition, and results of operations.

 Our
results of operations may be adversely affected by fluctuations in foreign currency values.

 As
a result of our global operations, we generate a portion of our revenue and incur a portion of our expenses in currencies other than
the U.S. dollar. Our primary currency exposures are the British Pound, Euro, Bulgarian Lev, Israeli Shekel, and Australian Dollar. For
example, we have a significant amount of our Euro-denominated transactions associated with revenue, a devaluation of the Euro relative
to the U.S. dollar would adversely affect our results of operations reported in the U.S. dollar. As our transactions in British Pounds
are primarily expenses, a decline of the U.S. dollar relative to the British Pound would negatively impact our results of operations
reported in the U.S. dollar. The financial condition, results of operations and cash flows of some of our operating entities are reported
in currencies other than the U.S. dollar and then translated into U.S. dollars at the applicable exchange rate for inclusion in our consolidated
financial statements. As a result, appreciation of the U.S. dollar against those other currencies generally will have a negative impact
on our reported revenue and profits while depreciation of the U.S. dollar against other currencies will generally have positive effect
on reported revenue and profits. Any significant decline in the value of these currencies as compared to the U.S. dollar would have a
material adverse impact on our results of operations.

 The
expansion of our business will subject us to taxation in a number of jurisdictions and changes in, or new interpretation of, tax laws,
tax rulings or their application by tax authorities could result in additional tax liabilities and could materially affect our financial
condition and results of operations.

 We
pay U.S. federal, state and international taxes due to our global operations and the locations in which we operate. We are subject to
taxation in a number of international jurisdictions. The tax laws applicable to our business are myriad, and are subject to interpretation,
and significant judgment is required in determining our provision for income taxes. In the course of our business, there are many transactions
and calculations where the ultimate tax determination is uncertain. Consequently, our results may differ from previous estimates and
may materially affect our consolidated financial statements.

 The
gaming industry represents a significant source of tax revenue to the jurisdictions in which we will operate. Gaming companies and B2B
providers in the gaming industry (directly and/or indirectly by way of their commercial relationships with operators) are currently subject
to significant taxes and fees in addition to normal corporate income taxes, and those taxes and fees are subject to increase at any time.
In addition, any worsening of economic conditions and the large number of jurisdictions with significant current or projected budget
deficits could intensify the efforts of governments to raise revenues through increases in gaming taxes and/or other taxes. It is not
possible to determine with certainty the likelihood of changes in tax laws or in the administration or interpretation or enforcement
of such laws. Any material increase, or the adoption of additional taxes or fees, could have a material adverse effect on our business,
financial condition, results of operations and prospects.

 We
are subject to periodic review and audit by U.S. and foreign tax authorities. Tax authorities may disagree with certain tax positions
that we have taken or that we will take, and any adverse outcome of such a review or audit could have a negative effect on our business,
financial condition and results of operations. Although we believe that our income tax provisions, positions and estimates are reasonable
and appropriate, tax authorities may disagree with certain positions we have taken. In addition, economic and political pressures to
increase tax revenue in various jurisdictions may make resolving tax disputes favorably more difficult.

 U.S.
Holders of our ordinary shares could be subject to material adverse tax consequences if we are considered a Passive Foreign Investment
Company for U.S. federal income tax purposes.

 There
is a risk that we could be classified as a Passive Foreign Investment Company ("PFIC"), for U.S. federal income tax purposes.
Our status as a PFIC could result in a reduction in the after-tax return to U.S. Holders of our ordinary shares and may cause a reduction
in the value of our ordinary shares. A corporation is classified as a PFIC for any taxable year in which either (i) at least 75% of its
gross income is "passive income" or (ii) at least 50% of the average quarterly value of all its assets consists of assets
that produce, or are held for the production of, passive income. For this purpose, passive income generally includes among other things,
dividends, interest, certain rents and royalties, annuities, certain gains from the sale of stock and securities, and certain gains from
commodities transactions.

 Based
on the projected composition of our income and valuation of our assets, we do not believe we would have been a PFIC in any previous taxable
year, and we do not expect to become a PFIC in the foreseeable future, although there can be no assurance in this regard. The U.S. Internal
Revenue Service or a U.S. court could determine that we are or were a PFIC in any past, current, or future taxable years. The determination
of whether we are a PFIC is a fact-intensive determination made on an annual basis applying principles and methodologies, which in some
circumstances are unclear and subject to varying interpretation. If we were classified as a PFIC, U.S. Holders of our ordinary shares
could be subject to greater U.S. income tax liability than might otherwise apply, imposition of U.S. income tax in advance of when tax
would otherwise apply and detailed tax filing requirements that would not otherwise apply. The PFIC rules are complex and a U.S. holder
of our ordinary shares is urged to consult its tax advisors regarding the possible application of the PFIC rules.

 Risks
Related to Corporate Governance Matters

 Ownership
in our ordinary shares is restricted by gaming laws and our by-laws, and persons found " unsuitable "
 may be required to dispose of their shares.

 Gaming
authorities have the right to investigate any individual or entity having a relationship to, or involvement with, our Company or any
of its subsidiaries, to determine whether such individual or entity is suitable as a business associate of ours. Many jurisdictions also
require any person who acquires beneficial ownership of more than a certain percentage of voting securities of a gaming company and,
in some jurisdictions, non-voting securities, sometimes 5%, to report the acquisition to the gaming authorities, and the gaming authorities
may require such holders to apply for qualification or a finding of suitability, subject to limited exceptions for "institutional
investors" that hold a company's voting securities for investment purposes only. Subject to certain administrative proceeding
requirements, gaming authorities have broad discretion to deny any application or limit, condition, restrict, revoke or suspend any license,
registration, finding of suitability or approval, or fine any person licensed, registered or found suitable or approved, for any cause
deemed reasonable by the gaming authorities.

 Any
person found unsuitable by a gaming authority may not hold directly or indirectly ownership of any voting security or the beneficial
or record ownership of any nonvoting security or any debt security of any public corporation which is registered with the relevant gaming
authority beyond the time prescribed by the relevant gaming authority. Our by-laws include certain provisions to ensure that we comply
with applicable gaming laws. These provisions provide, among other things, that GAN Limited is prohibited from carrying on Gaming or
Gaming Activities (as defined therein) itself and that our Board of Directors has the right to cause a forced sale of the ordinary shares
held by an unsuitable person. Any such forced sale may negatively affect the trading price of our ordinary shares and may negatively
affect the liquidity of our ordinary shares.

 We
are a Bermuda company and it may be difficult for you to enforce judgments against us or certain of our officers.

 We
are a Bermuda exempted company. As a result, the rights of holders of our ordinary shares will be governed by Bermuda law and our memorandum
of association and by-laws. The rights of shareholders under Bermuda law may differ from the rights of shareholders of companies incorporated
in other jurisdictions. Bermuda legislation regarding companies is largely based on English corporate law principles. However, there
can be no assurance that Bermuda law will not change in the future or that it will serve to protect investors in a similar fashion afforded
under corporate law principles in the United States, which could adversely affect the rights of investors. Certain of our officers are not residents of the United States, and a substantial portion of our assets are located outside the United States. As a
result, it may be difficult for investors to effect service of process on those persons in the United States or to enforce in the United
States, judgments obtained in U.S. courts against us or those persons based on the civil liability provisions of the U.S. federal securities
laws. We have been advised by our special Bermuda counsel that uncertainty exists as to whether courts in Bermuda will enforce judgments
obtained in other jurisdictions, including the United States, or entertain action in Bermuda against us or our directors or officers.

 Furthermore,
we have been advised by our special Bermuda counsel that Bermuda courts will not recognize or give effect to U.S. federal securities
laws that such Bermuda courts consider to be procedural in nature, are revenue or penal laws or the application of which would be inconsistent
with public policy in Bermuda. Certain remedies available under the laws of U.S. jurisdictions, including certain remedies under U.S.
federal securities laws, will not be recognized or given effect to in any action brought before a court of competent jurisdiction in
Bermuda where the application of such remedies would be inconsistent with public policy in Bermuda. Further, no claim may be brought
in Bermuda against us or our directors and officers in the first instance for violations of U.S. federal securities laws because those
laws do not have the force of law in Bermuda. A Bermuda court may, however, impose civil liability on us or our directors and officers
if the facts alleged in a complaint constitute or give rise to a cause of action under Bermuda law.

 Shareholders
of a Bermuda company may have a cause of action against us or our directors for breach of any duty in the by-laws or any shareholders'
agreement owed personally by us to the shareholder. Directors of a Bermuda company may be liable to the company for breach of their duties
as directors to the company under the Bermuda Companies Act, and under common law. Such actions must, as a general rule, be brought by
the company. Where the directors have carried on an act which is ultra vires or illegal, then the shareholder has the right, with leave
of the court, to bring a derivative action to sue the directors on behalf of the company with any damages awarded going to the company
itself. Shareholders are also able to take action against a company if the affairs of the company are being conducted in a manner which
is oppressive or unfairly prejudicial to the shareholders or some number of them, and to seek either a winding-up order or an alternative
remedy if a winding-up order would be unfairly prejudicial to them.

 Our
by-laws restrict shareholders from bringing legal action against our officers and directors.

 Our
by-laws contain a broad waiver by our shareholders of any claim or right of action, both individually and on our behalf, against any
of our officers or directors. The waiver applies to any action taken by an officer or director, or the failure of an officer or director
to take any action, in the performance of his or her duties, except with respect to any matter involving any fraud or dishonesty on the
part of the officer or director or any claims of violations of the Securities Act of 1933 or the Securities Exchange Act of 1934 the
waiver of which would be prohibited by Section 14 of the Securities Act and Section 29(a) of the Exchange Act. This waiver limits the
right of shareholders to assert claims against our officers and directors unless the act or failure to act involves fraud or dishonesty.

 We
have provisions in our by-laws that may discourage a change of control.

 Our
by-laws contain provisions that could make it more difficult for a third-party to acquire us without the consent of our Board of Directors.
These provisions include, among others:

 restrictions
 on the time period in which directors may be nominated;

 the
 prohibition of cumulative voting in the election of directors;

 the
 requirement for shareholders wishing to propose a person for election as a director (other than persons proposed by our Board of
 Directors) to give advance written notice of nominations for the election of directors; and

 certain
 provisions to ensure that we comply with applicable gaming laws, which provide, among other things, that our Board of Directors has
 the right to cause a forced sale of the ordinary shares held by an "unsuitable" person (see the risk factor above entitled
 "Ownership in our ordinary shares is restricted by gaming laws and our by-laws, and persons found "unsuitable"
 may be required to dispose of their shares").

 These
provisions could make it more difficult for a third-party to acquire us, even if the third-party's offer may be considered beneficial
by many shareholders. As a result, shareholders may be limited in their ability to obtain a premium for their shares.

 ITEM
1B. UNRESOLVED STAFF COMMENTS

 None.

 ITEM
1C. CYBERSECURITY

 In
the ordinary course of our business, we collect, process, store, and transmit players' data, including confidential,
sensitive, proprietary, and personal information. Maintaining the confidentiality, integrity and availability of our information
technology systems and data, as well as appropriate limitations on access to such information, is
important to our operations and business strategy. To this end, we have implemented various Information Security programs aligned to ISO and NIST cyber security frameworks with functions incorporating
the "Identify", "Protect", "Detect", "Respond", and "Recover" concepts. They are designed to assess, identify, and
manage risks from potential unauthorized occurrences on or through our information technology systems that may result in adverse
effects on the confidentiality, integrity, and availability of these systems and the data residing in them.

 The
security program is managed and monitored by a dedicated Information Security team, which is led by our Vice President of Global
Information Security, the Company's designated Chief Information Security Officer ("CISO"), and includes
mechanisms, controls, technologies, systems, policies and other processes designed to prevent, detect, respond, and recover from
data loss, theft, misuse, or other security incidents or vulnerabilities affecting the systems and data residing in them. For
example, we have adopted a risk-based approach to security which includes continuous risk assessments, vulnerability scans and
periodic penetration and testing. We perform due diligence on our key technology vendors
and other contractors and suppliers. We also conduct employee training on cyber and information security, among other topics. Our security program is subjected to independent external audits annually to evaluate the effectiveness of our security
program and identify areas for continuous improvement.

 Our CISO, who reports directly to the Chief Technology Officer, is
a Certified Information Systems Security Professional with over 20 years of experience managing information technology and cybersecurity
matters, including more than four years in gaming and two years at GAN Limited. Members of the information security team who support the
security program hold relevant educational and professional credentials with experience in similar roles from other technology companies.
The CISO and Information Security team, together with our Privacy and Data Protection Team, led by a dedicated Data Protection Officer
are responsible for assessing and managing cybersecurity risks. We consider cybersecurity, along with other significant risks that we
face, within our overall enterprise risk management framework. In the last fiscal year, we have not identified any prior cybersecurity
incidents that have materially affected us, but we face certain ongoing risks from cybersecurity threats that, if realized, are reasonably
likely to materially affect us. Additional information on cybersecurity risks we face is discussed in Part I, Item 1A, "Risk Factors".

 The
Board of Directors, as a whole and at the committee level, has oversight for the most significant risks facing us and for our
processes to identify, prioritize, assess, manage, and mitigate those risks. The Board of Directors receive updates on cybersecurity
and information technology matters and related risk exposures from our CISO and CTO as well as other members of the senior
leadership team.

 ITEM
2. PROPERTIES

 Our
corporate headquarters is located at 400 Spectrum Center Drive, Suite 1900, Irvine, California 92618. In addition to our corporate headquarters,
we have regional offices in Bulgaria, Israel, and Estonia. We lease our corporate headquarters and each of our regional offices. We believe
that our current facilities are adequate to meet our needs for the near future and that suitable additional or alternative space will
be available on commercially reasonable terms to accommodate our foreseeable future operations.

 ITEM
3. LEGAL PROCEEDINGS

 The
Company may be subject to legal actions and claims arising from contracts or other matters from time to time in the ordinary course of
business. Management is not aware of any pending or threatened litigation, which are considered other than routine legal proceedings.
The Company believes the ultimate disposition or resolution of its routine legal proceedings will not have a material adverse effect
on its financial position, results of operations or liquidity.

 ITEM
4. MINE SAFETY DISCLOSURES

 Not
applicable.

 PART
II

 ITEM
5. MARKET FOR REGISTRANT ' S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

 Market
Information

 Our
ordinary shares have been listed on The Nasdaq Capital Market under the symbol "GAN" since May 7, 2020. Prior to that date,
our predecessor entity, GAN plc, was a public limited company incorporated under the laws of England and Wales. Since 2013 through the
date of our initial public offering, the ordinary shares of GAN plc traded on AIM, a market operated by the London Stock Exchange under
the symbol "GAN."

 On
May 5, 2020, we affected a reorganization and share exchange in which 21,593,910 ordinary shares of GAN Limited, together with cash consideration
in the aggregate amount of 2.0 million, were issued to the shareholders of GAN plc in exchange for all outstanding ordinary shares
of GAN plc, after which time GAN plc became a wholly-owned subsidiary of GAN Limited.

 On
March 22, 2023, we had 118 holders of record of our ordinary shares. A substantially greater number of holders are beneficial owners
whose shares are held of record banks, brokers and other nominees. The transfer agent and registrar for our ordinary shares is Continental
Stock Transfer and Trust Company.

 Dividends

 We
have never declared or paid any cash dividends on our ordinary shares. We currently intend to retain our future earnings, if any, to
finance the operation and expansion of our business. We do not expect to pay cash dividends on our ordinary shares in the foreseeable
future. Our payment of dividends in the future, if any, will be determined by our Board of Directors and will be paid out of funds legally
available for that purpose.

 Issuer
Purchases of Equity Securities

the quarter ended December 31, 2023, the Company had no share repurchases.

 ITEM
6. [RESERVED]

 ITEM
7. MANAGEMENT ' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 You
should read the following discussion and analysis of our financial condition and results of operations together with the Company ' s
consolidated financial statements and the related notes thereto. Some of the information contained in this discussion and analysis or
set forth elsewhere, including information with respect to our plans and strategy for our business, includes forward-looking statements
that involve risks and uncertainties. You should review the " Cautionary Note Regarding Forward-Looking Statements "
 and " Risk Factors " sections for a discussion of important factors that could cause actual results to differ
materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

 Overview

 GAN
Limited is a Bermuda exempted holding company and through its subsidiaries, operates in two lines of business. We are a business-to-business
("B2B") supplier of enterprise Software-as-a-Service ("SaaS") solutions for online casino gaming, commonly referred
to as iGaming, and online sports betting applications. Beginning with our January 2021 acquisition of Vincent Group p.l.c., a Malta public
limited company ("Coolbet"), we are also a business-to-consumer ("B2C") developer and operator of an online sports
betting and casino platform, which offers consumers in select markets in Northern Europe, Latin America and Canada a digital portal for
engaging in sports betting, online casino games and poker. These two lines of business are also the Company's reportable segments.

 The
B2B segment develops, markets and sells instances of and GameSTACK technology, GAN Sports, and iSight Back Office that incorporates comprehensive
player registration, account funding and back-office accounting and management tools that enable casino operators to efficiently, confidently
and effectively extend their online presence. GAN Sports, our newest
product offering following the acquisition of Coolbet, launched in September 2022 and aims to provide a best-in-class B2B sports betting
product in the U.S. and Canada.

 The
B2C segment includes the operations of Coolbet. Coolbet develops and operates an online sports betting and casino platform that is accessible
through its website in markets across Northern Europe, Latin America, and Canada.

 To
meet demand and serve our growing number of U.S. casino operator clients, we continue to invest in our software engineering capabilities
and expand our operational support. The most significant component of our operating costs generally relate to our employee salary costs
and benefits. Also, operating costs include technology and corporate infrastructure related-costs, as well as marketing expenditures
with a focus on increasing and retaining B2C end-users.

 Our
net loss was $34.4 million and $197.5 million for the years ended December 31, 2023 and 2022, respectively.

 We
believe that our current technology is highly scalable and can support the launch of our product offerings for new customers and in new
jurisdictions. We expect to improve our profitability through increased revenues from:

 organic
 growth of our existing casino operators,

 expansion
 into newly regulated jurisdictions with existing and new customers,

 margin
 expansion driven by the integration of Coolbet's sports betting technology in our B2B product offerings,

 strategically
 reducing our existing worldwide global workforce to simplify and streamline our organization and strengthen the overall competitiveness
 of our B2B segment,

 revenue
 expansion from the roll-out of our Super RGS content offering to B2C operators who are not already clients, and

 organic
 growth of our B2C business in existing and new jurisdictions.

 We
hold a U.S. patent, which governs the linkage of on-property reward cards to their counterpart internet gambling accounts together
with bilateral transmission of reward points between the internet gaming technology system and the land-based casino management system
present in all U.S. casino properties.

 Critical
Accounting Policies and Estimates

 Our
accounting policies are more fully described in Note 2 – Summary of Significant Accounting Policies of our Notes to Consolidated
Financial Statements included in this report. As disclosed in Note 2, the preparation of financial statements in accordance with accounting
principles generally accepted in the United States requires the use of judgments and estimates. We base our estimates on historical experience
and on various other assumptions that we believe to be reasonable under current circumstances, the results of which form the basis for
making judgments about the carrying values of assets and liabilities that are not readily available from other sources. Actual results
may differ from these estimates. We consider the following to be our most critical accounting estimates that involve significant judgment:

Recognition

 Our
revenue recognition policies described in Note 2 – Summary of Significant Accounting Policies, require us to make significant judgments
and estimates. Accounting Standards Codification ("ASC") 606 requires that we apply judgments or estimates to determine the
performance obligations, the stand-alone selling prices of our performance obligations to customers, allocation of the transaction price,
and the timing of transfer of control of the respective performance obligations. The evaluation of each of these criteria requires consideration
of contract specific facts and circumstances is naturally judgmental, but certain judgments could significantly affect the amount or
timing of revenue recognized if we were to reach a different conclusion. The critical judgments we are required to make in our assessment
of contracts with customers that could significantly affect the timing or amount of revenue recognized are:

 Stand-Alone
Selling Price and Allocation of Transaction Price. ASC 606 requires that we determine the stand-alone selling price for our goods
and services as a basis for allocating the transaction price to the identified distinct performance obligations in our contracts with
customers. Because we often bundle the selling price for hardware or services or we may license systems for which the solutions we provide
are highly customized and therefore the prices vary, the determination of a stand-alone selling price requires significant judgment.

 For
performance obligations that involve multiple products or services, we allocate the transaction price to be applied to each performance
obligation based on an estimation of the stand-alone selling price. We typically determine the stand-alone selling price based on the
amounts that we charge when sold separately in similar circumstances to similar customers. In instances where the stand-alone selling
price cannot be determined using an adjusted market assessment approach, we have used other allocation methods in accordance with ASC
606, including a residual approach to allocate a stand-alone selling price.

 Business
Combinations

 We
account for business combinations in accordance with ASC 805, Business Combinations. This standard requires the acquiring entity in a
business combination to recognize all (and only) the assets acquired and liabilities assumed in the transaction and establishes the acquisition-date
fair value as the measurement objective for all assets acquired and liabilities assumed in a business combination.

 Determining
the fair value of assets acquired and liabilities assumed requires management judgment and often involves the use of significant estimates
and assumptions with respect to the timing and amounts of future cash inflows and outflows, discount rates, market prices and asset lives,
among other items. These estimates are based on information obtained from management of the acquired company and historical experience
and are generally made with the assistance of an independent valuation firm. These estimates can include, but are not limited to, the
cash flows that an asset is expected to generate in the future, and the cost savings expected to be derived from acquiring an asset.
Any changes in the underlying assumptions can impact the estimates of fair value by material amounts, which can in turn materially impact
our results of operations. These estimates are inherently uncertain and unpredictable, and, if different estimates were used, the purchase
price for the acquisition could be allocated to the acquired assets and liabilities differently from the allocation that we have made.
In addition, unanticipated events and circumstances may occur which affect the accuracy or validity of such estimates, and, if such events
occur, we may be required to record a charge against the value ascribed to an acquired asset or an increase in the amounts recorded for
assumed liabilities.

 If
the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections
used to develop these fair values, we may have to record impairment charges in the future. In addition, we have estimated the useful
lives of certain acquired assets, and these lives are used to compute depreciation and amortization expense. If our estimates of the
useful lives change, depreciation and amortization expense may be required to be accelerated or decelerated.

is reviewed for impairment annually as of October 1st, or more frequently if indicators of impairment exist. A significant amount of
judgment is involved in determining if an indicator of goodwill impairment has occurred. Such indicators may include, among others: a
significant decline in expected future cash flows; a significant adverse change in legal factors or in the business climate; unanticipated
competition; and the testing for recoverability of a significant asset group within a reporting unit. Our goodwill impairment analysis
also includes a comparison of the aggregate estimated fair value of all reporting units to our total market capitalization. Therefore,
our shares may trade below our book value and a significant and sustained decline in our share price and market capitalization could
result in goodwill impairment charges. Any adverse change in these factors could have a significant impact on the recoverability of these
assets and could have a material impact on our consolidated financial statements.

impairment testing involves a comparison of the estimated fair value of a reporting unit to its respective carrying amount, which may
be performed utilizing either a qualitative or quantitative assessment. A reporting unit is defined as an operating segment or one level
below an operating segment. The qualitative assessment evaluates various events and circumstances, such as macro-economic conditions,
industry and market conditions, cost factors, relevant events and financial trends that may impact a reporting unit's fair value.
If it is determined that the estimated fair value of the reporting unit is more-likely-than-not less than the carrying amount, including
goodwill, a quantitative assessment is required. Otherwise, no further analysis is necessary.

 In
a quantitative assessment, the fair value of a reporting unit is determined and then compared to its carrying value. A reporting unit's
fair value is determined based upon consideration of various valuation methodologies, including the income approach, which utilizes projected
future cash flows discounted at rates commensurate with the risks involved, and multiples of current and future earnings. If the fair
value of a reporting unit is less than its carrying value, a goodwill impairment charge is recognized for the amount by which the carrying
amount exceeds the reporting unit's fair value; however, the loss recognized cannot exceed the total amount of goodwill allocated
to that reporting unit.

 We
estimated the fair value of all reporting units utilizing both a market approach and an income approach (discounted cash flow) and the
significant assumptions used to measure fair value include discount rate, terminal value factors, revenue and EBITDA multiples, and control
premiums.

 The
income approach used to test our reporting units includes the projection of estimated operating results and cash flows, discounted using
a weighted-average cost of capital ("WACC") that reflects current market conditions appropriate to each reporting unit. Those
projections involve management's best estimates of economic and market conditions over the projected period, including growth rates
in revenues and costs and best estimates of future expected changes in operating margins and cash expenditures. Other significant assumptions
and estimates used in the income approach include terminal value growth rates, future estimates of capital expenditures and changes in
future working capital requirements. In addition, the WACC utilized to discount estimated future cash flows is sensitive to changes in
interest rates and other market rates in place at the time the assessment is performed.

 The
market approach used to test our reporting units included the review of revenue and EBITDA multiples from other publicly traded companies
in the industry used to derive their enterprise values and the application of those multiples to the relevant earnings streams within
each of our reportable segments.

 We
confirmed the reasonableness of the estimated reporting unit fair values under the income and market approaches by reconciling those
fair values to our enterprise value and market capitalization. Data points from other market participants were additionally used which
suggested that the lower end of valuation ranges related to our B2C segment may be applicable while adverse regulatory changes in certain
markets in which we operate were pending.

 Share-Based
Compensation

 Management
measures equity-classified share-based awards at fair value at the date of grant and expenses the cost on a straight-line basis over
the requisite service period of the entire award, generally defined as the vesting period, along with a corresponding increase in equity.
Forfeitures are recorded in the period in which they occur with the impact, if any, recognized in the consolidated statements of operation
with a corresponding adjustment to equity.

 The
fair value of share options is determined using a Black-Scholes model, taking into consideration management's best estimate of
the expected life of the option and the estimated number of shares that will eventually vest. Application of the option-pricing model
involves the use of estimates, judgment and assumptions that are highly complex and subjective and are outlined below as they pertain
to grants subsequent to our initial public offering.

 Expected
Term – represents the period of time that awards granted are expected to be outstanding. In determining the expected term of
the award, future exercise and forfeiture patterns are estimated from historical employee exercise behavior. These patterns are also
affected by the vesting conditions of the award. Changes in the future exercise behavior of employees or in the vesting period of the
award could result in a change in the expected term. An increase in the expected term would result in an increase to our expense.

 Volatility
 – a measure of the amount by which the price of our ordinary shares is expected to fluctuate each year during the expected
term of the award. Our expected volatility is determined by reference to volatility of certain identified peer groups, share trading
information and share prices on the Nasdaq. The implied volatilities from traded options are impacted by changes in market conditions.
An increase in the volatility would result in an increase in our expense.

 Expected
Dividend Yield – is based on our historical dividend yield, which is zero – as we have not historically paid dividends.
If we were to begin paying dividends, the dividend yield would increase and result in a decrease in our expense.

 Risk-Free
Interest Rate – is based on the U.S. Treasury yield curve in effect at time of grant. As the risk-free interest rate increases,
the expected term increases, resulting in an increase in our expense.

 Capitalization
and Impairment of Internally Generated Intangible Assets

 Management
reviews expenditures, including wages and benefits for employees, incurred on development activities and, based on their judgment of
the costs incurred, assesses whether the expenditure meets the capitalization criteria set out in ASC 350 and the intangible assets accounting
policy within the notes to our consolidated financial statements. Management specifically considers if additional expenditure on projects
relates to maintenance or new development projects. In addition, the useful life of capitalized development costs is determined by management
at the time the software is brought into use and is regularly reviewed for appropriateness. For unique software products we control and
develop, the life is based on historical experience with similar products as well as anticipation of future events, which may impact
their useful economic life, such as changes in technology.

 Management
reviews intangible assets at each reporting period to determine potential impairment whenever events or changes in circumstances indicate
that the carrying amount of an intangible asset may not be fully recoverable. Recoverability is measured by comparing the carrying amount
of the intangible asset with the future undiscounted cash flows the asset is expected to generate. Management must make estimates related
to future cash flows and discount rates that reflects current market assessments of the time value of money and the risks specific to
the asset for which the estimates of future cash flows have not been adjusted. If such assets are considered impaired, an impairment
loss would be measured by comparing the amount by which the carrying value exceeds the fair value of the intangible asset.

 Income
Taxes

 We
operate in a number of jurisdictions and our effective tax rate is based on our income, statutory tax rates, tax planning opportunities
and transfer pricing policies in the various jurisdictions in which we operate. Judgment is required in respect of the interpretation
of state, federal and international tax law and practice as e-commerce and tax continues to evolve. Our income tax rate is significantly
affected by the tax rates that apply to our foreign earnings.

 Deferred
tax assets represent amounts available to reduce income taxes payable in future years. Such assets arise from temporary differences between
the financial reporting and tax basis of assets and liabilities, as well as from net operating losses and tax credit carryforwards. Deferred
tax assets are recognized to the extent that it is probable future taxable profits will be available against which the temporary differences
can be utilized. This assessment of future taxable profits relies heavily on estimates that are based on a number of factors, including
historical results and future business forecasts. To the extent deferred tax assets are not expected to be realized, we record a valuation
allowance.

 Research
and development tax relief is recognized as an asset once there is sufficient evidence that any amount we may claim will be received.
A key judgement arises with respect to the likelihood of a claim being successful when a claim has been quantified but has not been received.
In making this judgement, we consider the nature of the claim and in particular the track record of success of previous claims.

 We
are subject to income taxes in numerous jurisdictions and there are transactions for which the ultimate tax determination cannot be assessed
with certainty in the ordinary course of business. We recognize a provision for situations that might arise in the foreseeable future
based on an assessment of the probabilities as to whether additional taxes will be due. An uncertain tax position is recognized as a
benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination
being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized
on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. Penalties and
interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred.

 Consolidated
Results of Operations

 Year
Ended December 31, 2023 Compared to Year Ended December 31, 2022

 The
following table sets forth our consolidated results of operations for the periods indicated:

 2023

 2022

 (dollars in thousands)

 $

 $

 $
 (12,109
)

 (8.6
)%

 Operating costs and expenses

 38,700

 41,634

 (2,934
)

 (7.0
)%

 Sales and marketing

 28,972

 28,303

 2.4
 %

 Product and technology

 38,243

 35,195

 3,048

 8.7
 %

 General and administrative (1)

 36,657

 37,848

 (1,191
)

 (3.1
)%

 —

 (166,010
)

 n.m.

 Restructuring

 —

 1,771

 (1,771
)

 n.m.

 Depreciation and amortization

 17,161

 23,276

 (6,115
)

 (26.3
)%

 Total operating costs and expenses

 159,733

 334,037

 (174,304
)

 (52.2
)%

 Operating loss

 (30,314
)

 (192,509
)

 162,195

 (84.3
)%

 Other loss, net

 3,992

 1,047

 2,945

 n.m.

 Loss before income taxes

 (34,306
)

 (193,556
)

 159,250

 (82.3
)%

 Income tax expense

 3,942

 (3,804
)

 (96.5
)%

 $
 (34,444
)

 $
 (197,498
)

 $
 163,054

 (82.6
)%

 (1)
 Excludes depreciation and amortization expense

 n.m.
= not meaningful

 Geographic
Information

 The
following table sets forth our consolidated revenue by geographic region, for the periods indicated:

 Percentage of Revenue

 2023

 2022

 2023

 2022

 (dollars in thousands)

 United States

 $
 31,758

 $
 45,615

 24.5
 %

 32.2
 %

 $
 (13,857
)

 (30.4
)%

 Europe

 47,788

 45,092

 36.9
 %

 31.9
 %

 2,696

 6.0
 %

 Latin America

 39,935

 44,078

 30.9
 %

 31.1
 %

 (4,143
)

 (9.4
)%

 Rest of the world

 9,938

 6,743

 7.7
 %

 4.8
 %

 3,195

 47.4
 %

 Total revenue

 $

 $

 100.0
 %

 100.0
 %

 $
 (12,109
)

 (8.6
)%

was $129.4 million for the year ended December 31, 2023, a decrease of $12.1 million from the comparable period in 2022. The decrease
was attributable to a decrease of $10.8 million in our B2B revenues, which was driven by a decrease in our contractual revenue rates
related to the expiration of an exclusivity period with a B2B customer, and a decrease of $1.2 million in our
B2C revenues, which was attributable to active customer decline in Latin America.

 In
Europe, our B2C revenues increased $4.5 million as a result of active customer growth. This growth was offset by declines in the B2B
RMiG business in Europe that resulted in a $1.8 million decrease in revenue.

 The
decrease in revenue in the United States as compared to the prior period was the result of a decrease in our contractual revenue rates
related to the expiration of an exclusivity period with a B2B customer.

 Cost
of Revenue

 Cost
of revenue was $38.7 million for the year ended December 31, 2023, a decrease of $2.9 million from the comparable period in 2022.
The decrease was primarily attributable to recognition of service expense of $1.5 million related to our content licensing
arrangements that was accounted for as a service contract in the prior year. Additionally, the Company recognized a decrease in cost
of development services and other revenue as a result of lower volume of hardware sales and a related decline in cost of revenue in
the current period than in the prior year comparable period.

 Sales
and Marketing

 Sales
and marketing expense was $29.0 million for the year ended December 31, 2023, an increase of $0.7 million from the comparable period
in 2022. The increase was primarily driven by an increase in sales and marketing activities within our B2C operations in order to attract
additional end-users in Latin America.

 Product
and Technology

 Product
and technology expense was $38.2 million for the year ended December 31, 2023, an increase of $3.0 million from the comparable
period in 2022. The increase was primarily attributable to a reduction in development activities that qualify for capitalization
within our B2B segment.

 General
and Administrative

 General
and administrative expense was $36.7 million for the year ended December 31, 2023, a decrease of $1.2 million from the comparable period
in 2022. This decrease was primarily driven by cost saving initiatives during the current period, largely consisting of a reduction in
headcount.

 We
recorded an impairment charge of $166.0 million during the year ended December 31, 2022. There were no impairment charges recorded in
the current year.

 Depreciation
and Amortization

 Depreciation
and amortization expense was $17.2 million for the year ended December 31, 2023, a decrease of $6.1 million from the comparable
period in 2022. The decrease was attributable to lower depreciable and amortizable basis due to the impairment recorded on certain
intangible assets in the year ended December 31, 2022, and a reduction in development activities that qualify for capitalization and amortization
within our B2B segment.

 Income
Tax Expense

 We
recorded income tax of $0.1 million for the year ended December 31, 2023, reflecting an effective tax rate of (0.4)%, compared to income
tax of $3.9 million for the year ended December 31, 2022, reflecting an effective tax rate of (2.0)%. Our country of domicile is Bermuda,
which effectively has a 0% statutory tax rate as it does not impose taxes on profits, income, dividends, or capital gains. The difference
between this 0% tax rate and the effective income tax rate for the years ended December 31, 2023 and 2022 was due primarily to a mix
of earnings in foreign jurisdictions that are subject to current and deferred tax and loss carryforwards in certain jurisdictions that
are not expected to be recognized.

 Segment
Operating Results

 We
report our operating results by segment in accordance with the "management approach." The management approach designates
the internal reporting used by our Chief Operating Decision Maker ("CODM"), who is our Chief Executive Officer, for making
decisions and assessing performance of our reportable segments.

 Year
Ended December 31, 2023 Compared to Year Ended December 31, 2022

 The
following table sets forth our segment results for the periods indicated:

 Percentage of Segment

 2023

 2022

 2023

 2022

 (dollars in thousands)

 B2B

 $
 43,154

 $
 54,045

 100.0
 %

 100.0
 %

 $
 (10,891
)

 (20.2
)%

 8,424

 11,248

 19.5
 %

 20.8
 %

 (2,824
)

 (25.1
)%

 B2B segment contribution

 $
 34,730

 $
 42,797

 80.5
 %

 79.2
 %

 $
 (8,067
)

 (18.8
)%

 B2C

 $
 86,265

 $
 87,483

 100.0
 %

 100.0
 %

 $
 (1,218
)

 (1.4
)%

 30,276

 30,386

 35.1
 %

 34.7
 %

 (110
)

 (0.4
)%

 B2C segment contribution

 $
 55,989

 $
 57,097

 64.9
 %

 65.3
 %

 $
 (1,108
)

 (1.9
)%

 (1)
 Excludes depreciation and amortization expense

 B2B
Segment

 B2B revenue decreased $10.8 million primarily
due to a decrease in platform and content license fees revenue of $12.1 million, resulting from a decrease in our contractual revenue
rates relating to the expiration of an exclusivity period with a B2B customer. This decrease was offset by an increase in
B2B development services and other revenue of $1.2 million, driven by fees earned by a B2B partner
that launched in April 2022.

 B2B
cost of revenue decreased $2.9 million primarily attributable to recognition of service expense related to our content licensing
arrangements that was accounted for as a service contract in the prior year of $1.5 million, as well as decreased royalties resulting from declines
in our SIM revenue.

 B2C
Segment

 B2C
revenue decreased $1.2 million primarily due to a decline in the number of active customers in our Latin American markets during the
current period.

 B2C
cost of revenue was relatively consistent with the prior comparable period.

 Non-GAAP
Financial Measures

 Adjusted
EBITDA

 Management
uses the non-GAAP measure of Adjusted EBITDA to measure its financial performance. Specifically, it uses Adjusted EBITDA (i) as a measure
to compare our operating performance from period to period, as it removes the effect of items not directly resulting from our core operations,
and (ii) as a means of assessing our core business performance against others in the industry, because it eliminates some of the effects
that are generated by differences in capital structure, depreciation, tax effects and unusual and infrequent events.

 We
define Adjusted EBITDA as net loss before interest expense (income), net, income tax expense (benefit), depreciation and amortization,
impairments, share-based compensation expense and related expense, restructuring costs, and other items which our Board of Directors
considers to be infrequent or unusual in nature. The presentation of Adjusted EBITDA is not intended to be used in isolation or as a
substitute for any measure prepared in accordance with U.S. GAAP and Adjusted EBITDA may exclude financial information that some investors
may consider important in evaluating our performance. Because Adjusted EBITDA is not a U.S. GAAP measure, the way we define Adjusted
EBITDA may not be comparable to similarly titled measures used by other companies in the industry.

 Below
is a reconciliation of Adjusted EBITDA to net loss, the most comparable U.S. GAAP measure, as presented in the consolidated statements
of operations for the years specified:

 2023

 2022

 (in thousands)

 (34,444
)

 (197,498
)

 Income tax expense

 3,942

 Interest expense

 5,003

 4,279

 Gain on amendment of Content Licensing Agreement

 (9,718
)

 —

 Loss on debt extinguishment

 8,784

 —

 Contingent liability and related revaluation (1)

 (830
)

 (3,000
)

 Depreciation and amortization

 17,161

 23,276

 Share-based compensation and related expense (2)

 5,511

 7,262

 Impairment (3)

 —

 Restructuring

 —

 1,771

 Adjusted EBITDA

 $
 (8,395
)

 $
 6,042

 (1)
 Includes $0.8 million of revaluation on contingent liability related to the Company's synthetic equity arrangement with a
customer for the year ended December 31, 2023. Includes a $3.0 million release of the contingent liability that was initially recognized
upon execution of the amendment to an agreement with a content provider for the year ended December 31, 2022. See Note 3 – Acquisition
in the accompanying consolidation financial statements for further details.

 (2)
 Includes $5.4 million and $7.6 million in equity-classified expense for the years ended December 31, 2023 and 2022, respectively,
$0.3 million and $0.1 million in liability-classified expense, for the years ended December 31, 2023 and 2022, respectively. Such amounts
excluded capitalized amounts. Refer to Note 9 – Share-based Compensation in the accompanying consolidated financial statements
for further details.

 (3) Includes
impairment to (i) goodwill of $136.9 million, (ii) intangible assets of $19.1 million, and (iii) capitalized software development
costs of $10.0 million for the year ended December 31, 2022. Refer to Note 5 – Capitalized Software Development Costs, net and Note
6 – Goodwill and Intangible Assets in the accompanying consolidated financial statements for further details.

 Key
Performance Indicators

 Our
management uses the following key performance indicators ("KPIs") as indicators of trends and results of the business. These
KPIs give our management an indication of the level of engagement between the player and the Company's platforms. No estimation
is necessary in quantifying these KPIs, nor do they represent U.S. GAAP based measurements. These KPIs are subject to various risks such
as customer concentration, competition, licensing and regulation, and macroeconomic conditions. Refer to "Item 1A. Risk Factors"
for further risks associated with our business which would affect these KPIs.

 2023

 2022

 B2B Gross Operator Revenue (in millions)

 $
 1,657.8

 $
 1,224.4

 $
 433.4

 35.4
 %

 B2B Take Rate

 2.6
 %

 4.4
 %

 (1.8
)%

 (41.0
)%

 B2C Active Customers (in thousands)

 (59
)

 (10.5
)%

 B2C Marketing Spend Ratio

 23.6
 %

 21.0
 %

 2.6
 %

 12.2
 %

 B2C Sports Margin

 7.0
 %

 6.9
 %

 0.1
 %

 1.6
 %

 B2B
Gross Operator Revenue

 We
define B2B Gross Operator Revenue as the sum of our B2B corporate customers' gross revenue from SIM, gross gaming revenue from
RMiG, and gross sports wins from sportsbook offerings. B2B Gross Operator Revenue, which is not comparable to financial information presented
in conformity with U.S. GAAP, gives management and users of our financial statements an indication of the extent of transactions processed
through our B2B corporate customers' platforms and allows management to understand the extent of activity that our platform is
processing.

 The
increase in Gross Operator Revenue for the year ended December 31, 2023, as compared to the year ended December 31, 2022, was driven
primarily by our customers' organic growth in Pennsylvania, Michigan, New Jersey, and Connecticut. Additionally, Ontario
supplemented the growth through the achievement of greater market share.

 B2B
Take Rate

 We
define B2B Take Rate as a quotient of B2B segment revenue retained by the Company over the total Gross Operator Revenue generated by
our B2B corporate customers. B2B Take Rate gives management and users of our financial statements an indication of the impact of the
statutory terms and the efficiency of the commercial terms on the business.

 The
decrease in B2B Take Rate for the year ended December 31, 2023, as compared to the year ended December 31, 2022, was primarily driven
by a decrease in our contractual revenue rates related to the expiration of an exclusivity period with a B2B customer.

 B2C
Active Customers

 We
define B2C Active Customers as a user that places a wager during the period. This metric allows management to monitor the customer segmentation,
growth drivers, and ultimately creates opportunities to identify and add value to the user experience. This metric allows management
and users of the financial statements to measure the platform traffic and track related trends.

 The
year ended December 31, 2022 had a significant surge in business activity across all markets, largely due to the World Cup 2022. While
the increased activity resulted in an all-time high in active customer count for 2022, the year ended December 31, 2023, did
not have any significant sports events resulting in a decline in active customer count in the current year.

 B2C
Marketing Spend Ratio

 We
define B2C Marketing Spend Ratio as the total B2C direct marketing expense for the period divided by the total B2C revenues. This metric
allows management to measure the success of marketing costs during a given period. Additionally, this metric allows management to compare
across jurisdictions and other subsets, as an additional indication of return on marketing investment.

 The
increase in B2C Marketing Spend Ratio for the year ended December 31, 2023, as compared to the year ended December 31, 2022, was primarily
driven by increased marketing spend in Latin America. In Latin America, we invested in developing greater brand awareness through several
marketing initiatives and sponsorships and the Ontario, Canada, market required higher acquisition spend due to increased competition
in a newly regulated jurisdiction.

 B2C
Sports Margin

 We
define B2C Sports Margin as the ratio of wagers minus winnings to total amount wagered, adjusted for open wagers at period end. Sports
betting involves a user placing a bet on the outcome of a sporting event with the chance to win a pre-determined amount, often referred
to as fixed odds. Our B2C sportsbook revenue is generated by setting odds that are intended to provide a built-in theoretical margin
in each sports bet offered to our users. This metric allows management to measure sportsbook performance against its expected outcome.

 The
modest increase in B2C Sports Margin for the year ended December 31, 2023, as compared to the year ended December 31, 2022, was primarily
driven by favorable outcomes. While the sports margin can fluctuate quarter to quarter on game outcomes and the mix shift of wagers overtime
sports margin should be relatively in-line with the longer-term average margin.

 Liquidity
and Capital Resources

 Sources
of Liquidity

 As
of December 31, 2023, we had an accumulated deficit of $309.3 million. During the year ended December 31, 2023, we incurred a net loss
of $34.4 million. We used $3.6 million of cash in operations during the year ended December 31, 2023. Cash on hand totaled $38.6 million
as of December 31, 2023 and liabilities to users totaled $10.2 million as of December 31, 2023.

 Since
our inception, we have primarily funded our operations through cash generated from operations, cash generated from financing activities
including our U.S. initial public offering and term credit facility, and cash on hand. In May 2020, we completed our U.S. initial public
offering under which we sold an aggregate of 7,337,000 ordinary shares for net proceeds of $57.4 million and in December 2020, we conducted
a follow-on offering under which we sold 6,790,956 ordinary shares for net proceeds of $98.5 million. In January 2021, we completed the
acquisition of Coolbet for a purchase price of $218.1 million, including the issuance of 5,260,516 ordinary shares, replacement equity-based
awards valued at $0.3 million and cash of $111.1 million, which was funded from the follow-on offering proceeds and available cash on
hand. During the year ended December 31, 2022, we repurchased $1.0 million of our own shares as we believed our share price was undervalued
and did not reflect the long-term opportunities ahead of us.

 In
April 2022, we entered into a $30.0 million term credit facility with net proceeds of $27.6 million (the "Credit
Facility"). The Credit Facility contained affirmative and negative covenants, including certain financial covenants associated
with our financial results. The financial covenants test periods began on March 31, 2023. We were in compliance with all financial
covenants as of December 31, 2022, however given our cash flow and net losses for the year ended December 31, 2022, historical
performance, and reasonably estimable near-term future cash flows, it is possible that we could violate a financial covenant in the
future which could trigger an acceleration of all amounts due and the termination of commitments under the Credit
Facility.

 In
the fourth quarter of 2022, we initiated plans to address our liquidity needs and improve our operations and cash position primarily
by (i) reducing and deferring personnel and operational costs for non-strategic initiatives, (ii) amending the Credit Facility to reduce
cash interest obligations and amend financial covenants, (iii) identifying sources of additional capital, (iv) continuing investment
in the growth areas of our consolidated operations, (v) continuing our cost saving initiatives first implemented during the year ended
December 31, 2022, and (vi) initiating a strategic review process to assess a range of strategic alternatives.

 On
April 13, 2023, a subsidiary of the Company executed agreements to amend its existing credit facility to waive all events of default,
amend certain financial covenants, assign the rights to the credit facility from its existing lender to a third party, and increase the
principal balance from $30.0 million to $42.0 million with accrued paid in-kind ("PIK") interest of 8.0% per year (together,
forming the "Amended Credit Facility"). The Amended Credit Facility became effective upon cash settlement of payments completed
on April 14, 2023 and represented a cure of any events of default under the Credit Facility and thereby prevented any amounts from becoming
due and payable under the Credit Facility's subjective acceleration clause. The Amended Credit Facility contains a financial covenant,
among other covenants, requiring minimum liquidity of $10.0 million. Refer to Note 7 – Debt for further detail. Management believes
the executed Amended Credit Facility and intent and ability to complete the remaining cost mitigation plans alleviate uncertainty regarding
the Company's ability to meet its current obligations as they come due.

 We
believe cash generated from operations and cash on hand will be sufficient to meet our working capital and capital expenditure requirements
for at least one year. We are actively evaluating internal costs to conserve cash and executing cost containment plans will be
critical to our ability to continue funding our operations for at least one year.

 To
the extent that our current resources, including our ability to generate operating cash flows, are insufficient to satisfy our cash requirements,
we may seek additional equity or debt financing. Our ability to do so depends on prevailing economic conditions and other factors, many
of which are beyond our control. We do not currently have any such credit facilities or similar debt arrangements in place, outside of
the Amended Credit Facility as described above, and cannot provide any assurance as to the availability or terms of any additional future
financing that we may require to support our operations. If the needed financing is not available, or if the terms of financing are less
desirable than we expect, we may be forced to decrease our level of investment in new products and technologies, discontinue further
expansion of our business, or scale back our existing operations, any of which could have an adverse impact on our business and financial
prospects.

 Material
Cash Commitments

 Our
primary uses of cash include funding our ongoing working capital needs, content licensing discussed below, and developing and maintaining
our proprietary software platforms. Such capital allocations are contemplated while considering other opportunities we may have to deploy
our capital.

the year ended December 31, 2021, we entered into a Content Licensing Agreement with a third-party gambling content provider (the
"Content Provider") specializing in development and licensing interactive games, (as amended in April 2022 and March 2023
the "Content Licensing Agreement"). The Content Licensing Agreement grants us exclusive right to use and
distribute the online gaming content in North America. The Content Provider was previously required to develop a minimum number of
games for our exclusive use over the five-year term, subject to extensions. In exchange, we were required to pay fixed fees, over
the initial five-year term, and additional payments if annual and cumulative thresholds were not met. In March 2023 the Company
amended and restated the Content Licensing Agreement with the Content Provider which resulted in a reduced contract term and a
reduction in the fixed fees payable under the arrangement. As of December 31, 2023, the remaining fixed fees payable under the
arrangement was $2.2 million, recorded other current liabilities within the consolidated balance sheets.

 The
execution of our growth strategy will require continued significant capital expenditures, and we expect to continue investing in our
products and technologies as we seek to scale our business. Specifically, the key elements of our growth strategy include, but are not
limited to, our continued rollout of GAN Sports with existing and new customers in regulated U.S. states, expansion of our international
B2C operations, and the launch of regulated gaming in new U.S. states.

 We
utilized cash in investing activities of $6.8 million and $19.1 million for the years ended December 31, 2023 and 2022, respectively.
Expenditures related to internally developed capitalized software represented $3.3 million and $10.1 million, respectively, purchases
of gaming licenses represented $0.4 million and $1.1 million, respectively, and property and equipment (including licenses for internal
use software) represented $3.1 million and $1.9 million, respectively. In the prior year, we paid $6.0 million to the Content Provider
in accordance with the Content Licensing Agreement.

 Cash
Flow Analysis

 A
summary of our operating, investing and financing activities is shown in the following table:

 (dollars in thousands)

 2023

 2022

 Net cash used in operating activities

 $
 (3,565
)

 $
 (1,249
)

 (2,316
)

 n.m.

 Net cash used in investing activities

 (6,815
)

 (19,103
)

 12,288

 (64.3
)%

 Net cash provided by financing activities

 1,347

 27,448

 (26,101
)

 (95.1
)%

 Effect of foreign exchange rates on cash

 1,691

 (653
)

 2,344

 n.m.

 Net increase (decrease) in cash

 $
 (7,342
)

 $
 6,443

 $
 (13,785
)

 n.m.

 n.m.
= not meaningful

 Operating
Activities

 Net
cash used in operating activities increased by $2.3 million primarily resulting from an increase in net loss after adjustments to
reconcile net loss to cash flows from operations of $(10.2) million, offset by a favorable fluctuation in working capital of $7.9
million. Net loss after adjustments to reconcile net loss to cash flows from operations increased due to a reduction of costs
eligible for capitalization related to the B2B segment, and a decrease in our contractual revenue rates relating to the expiration
of an exclusivity period with a B2B customer.

 Investing
Activities

 Net
cash used in investing activities decreased by $12.3 million primarily as a result a reduction of costs eligible for capitalization
related to the B2B segment of $6.7 million. Additionally, there were $6.0 million in cash payments to third-party gambling content
providers for the rights to use and distribute their online gaming content in North America made in the prior year that did not
recur, and a decrease of $0.7 million in cash payments for gaming licenses. These decreases were offset by an increase in purchases
of property, plant and equipment resulting from our investment in a new B2C headquarters in Europe.

 Financing
Activities

 Net
cash provided by financing activities decreased by $26.1 million primarily due to $27.6 million net cash proceeds associated with
the Credit Facility, net of issuance costs received in the prior year, compared to the $1.6 million net cash proceeds associated
with the amendment of the Credit Facility received in the current year.

 ITEM
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

 As
a smaller reporting company as defined by Item 10 of Regulation S-K, the Company is not required to provide the information required
by this Item.

 REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 Board
of Directors and Shareholders

 GAN
Limited

 Irvine,
California

 Opinion
on the financial statements

 We
have audited the accompanying consolidated balance sheets of GAN Limited (a Bermuda corporation) and subsidiaries (the
"Company") as of December 31, 2023 and 2022, the related consolidated statements of operations, comprehensive loss,
changes in shareholders' equity (deficit), and cash flows for each of the two years in the period ended December 31, 2023, and the
related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present
fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its
operations and its cash flows for each of the two years in the period ended December 31, 2023, in conformity with accounting
principles generally accepted in the United States of America.

 Basis
for opinion

 These
financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's
financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board
(United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We
conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company
is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits
we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion
on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

 Our
audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error
or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits
provide a reasonable basis for our opinion.

 /s/
 GRANT THORNTON LLP

 We
have served as the Company's auditor since 2021.

 Los
Angeles, California

 ITEM
8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 GAN

BALANCE SHEETS

 (in

 2023

 2022

 ASSETS

 Current assets

 Cash

 $
 38,578

 $
 45,920

 Accounts receivable, net of allowance for doubtful accounts of $ 244 and $ 250 at December 31, 2023 and December 31, 2022, respectively

 11,417

 13,808

 Prepaid expenses

 3,344

 4,861

 Other current assets

 3,202

 3,041

 Total current assets

 56,541

 67,630

 Capitalized software development costs, net

 8,370

 6,749

 Intangible assets, net

 12,358

 24,955

 Operating lease right-of-use assets, net

 4,340

 Other assets

 5,895

 3,512

 Total assets

 $
 87,504

 $
 103,080

 LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

 Current liabilities

 Accounts payable

 $
 6,971

 $
 6,437

 Accrued compensation and benefits

 7,849

 8,750

 Accrued content license fees

 4,024

 2,214

 Liabilities to users

 10,185

 10,683

 Current operating lease liabilities

 Other current liabilities

 6,891

 4,253

 Total current liabilities

 36,724

 32,532

 Deferred income taxes

 3,793

 4,218

 Long-term debt

 42,189

 28,157

 Content licensing liabilities

 —

 15,280

 Non-current operating lease liabilities

 3,577

 —

 Other liabilities

 5,825

 2,125

 Total liabilities

 92,108

 82,312

 Commitments and contingencies (Note 17)

 -

 Shareholders' equity (deficit)

 Ordinary shares, $ 0.01 par value, 100,000,000 shares authorized, 45,071,578 and 42,894,211 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively

 Additional paid-in capital

 336,552

 328,998

 Accumulated deficit

 ( 309,305
)

 ( 274,861
)

 Accumulated other comprehensive loss

 ( 32,302
)

 ( 33,798
)

 Total shareholders' equity (deficit)

 ( 4,604
)

 20,768

 Total liabilities and shareholders' equity (deficit)

 $
 87,504

 $
 103,080

 The
accompanying notes are an integral part of these consolidated financial statements.

 GAN

STATEMENTS OF OPERATIONS

 (in

 2023

 2022

 $

 $

 Operating costs and expenses

 38,700

 41,634

 Sales and marketing

 28,972

 28,303

 Product and technology

 38,243

 35,195

 General and administrative (1)

 36,657

 37,848

 —

 Restructuring

 —

 1,771

 Depreciation and amortization

 17,161

 23,276

 Total operating costs and expenses

 159,733

 334,037

 Operating loss

 ( 30,314
)

 ( 192,509
)

 Other loss, net

 3,992

 1,047

 Loss before income taxes

 ( 34,306
)

 ( 193,556
)

 Income tax expense

 3,942

 $
)

 $
)

 Loss per share, basic and diluted

 $
 ( 0.78
)

 $
 ( 4.66
)

 Weighted average ordinary shares outstanding, basic and diluted

 44,180,600

 42,359,523

 (1)
 Excludes depreciation
and amortization expense

 The
accompanying notes are an integral part of these consolidated financial statements.

 GAN

STATEMENTS OF COMPREHENSIVE LOSS

 (in
thousands)

 2023

 2022

 $
)

 $
)

 Other comprehensive loss, net of tax

 Foreign currency translation adjustments

 1,496

 ( 14,222
)

 Comprehensive loss

 $
 ( 32,948
)

 $
 ( 211,720
)

 The
accompanying notes are an integral part of these consolidated financial statements.

 GAN

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT)

 (in
thousands, except share amounts)

 Ordinary Shares

 Additional Paid-in

 Treasury

 Accumulated

 Accumulated Other Comprehensive

 Total Shareholders' Equity

 Capital

 Deficit

 Loss

 (Deficit)

 Balance at January 1, 2022

 42,250,743

 $

 $
 319,551

 $
 —

 $
 ( 76,360
)

 $
 ( 19,576
)

 $
 224,037

 —

 —

 —

 —

)

 —

)

 Foreign currency translation adjustments

 —

 —

 —

 —

 —

 ( 14,222
)

 ( 14,222
)

 Share-based compensation

 —

 —

 7,611

 —

 —

 —

 7,611

 Accrued liability settled through issuance of shares

 —

 —

 —

 —

 —

 Restricted share activity

 471,489

 —

 —

 —

 Repurchase of restricted shares to pay tax liability

 ( 140,141
)

 ( 1
)

 ( 268
)

 —

 —

 —

 ( 269
)

 Repurchases of ordinary shares

 ( 303,113
)

 —

 —

 ( 1,006
)

 —

 —

 ( 1,006
)

 Ordinary share retirement

 —

 ( 3
)

 —

 1,006

 ( 1,003
)

 —

 —

 Issuance of ordinary shares upon exercise of share options

 375,416

 —

 —

 —

 Issuance of ordinary shares upon ESPP purchases

 239,817

 —

 —

 —

 Balance at December 31, 2022

 42,894,211

 $

 $
 328,998

 $
 —

 $
 ( 274,861
)

 $
 ( 33,798
)

 $
 20,768

 Balance

 42,894,211

 $

 $
 328,998

 $
 —

 $
 ( 274,861
)

 $
 ( 33,798
)

 $
 20,768

 —

 —

 —

 —

)

 —

)

 Foreign currency translation adjustments

 —

 —

 —

 —

 —

 1,496

 1,496

 Share-based compensation

 —

 —

 5,246

 —

 —

 —

 5,246

 Restricted share activity

 829,895

 —

 —

 —

 Repurchase of restricted shares to pay tax liability (Note 9)

 ( 142,004
)

 ( 1
)

 ( 212
)

 —

 —

 —

 ( 213
)

 Issuance of ordinary shares upon exercise of share options

 181,516

 —

 —

 —

 Issuance of ordinary shares upon ESPP purchases

 57,960

 —

 —

 —

 Issuance of ordinary shares in connection with Content Provider Agreement

 1,250,000

 1,950

 —

 —

 —

 1,963

 Balance at December 31, 2023

 45,071,578

 $

 $
 336,552

 $
 —

 $
 ( 309,305
)

 $
 ( 32,302
)

 $
 ( 4,604
)

 Balance

 45,071,578

 $

 $
 336,552

 $
 —

 $
 ( 309,305
)

 $
 ( 32,302
)

 $
 ( 4,604
)

 The
accompanying notes are an integral part of these consolidated financial statements.

 GAN

STATEMENTS OF CASH FLOWS

 (in
thousands)

 Year
 Ended

 December
 31,

 2023

 2022

 Cash
 Flows From Operating Activities

 Net
 loss

 $
)

 $
)

 Adjustments
 to reconcile net loss to net cash used in operating activities:

 of software and intangible assets

 15,513

 21,747

 Depreciation
 on property and equipment and finance lease right-of-use assets

 1,648

 1,529

 Non-cash
 interest and amortization of debt discount and debt issuance costs

 3,978

 Share-based
 compensation expense

 5,397

 7,070

 Gain
 on extinguishment of content liability

 ( 9,717
)

 —

 Loss
 on extinguishment of debt

 8,784

 —

 in fair value of synthetic equity

 ( 830
)

 —

 —

 in contingent consideration

 —

 ( 3,000
)

 Deferred
 income tax

 ( 568
)

 3,250

 Other

 ( 100
)

 Changes
 in operating assets and liabilities, net of acquisition:

 Accounts
 receivable

 2,619

 ( 5,934
)

 Prepaid
 expenses

 1,593

 ( 1,320
)

 Other
 current assets

 Other
 assets

 ( 473
)

 3,114

 Accounts
 payable

 1,383

 Accrued
 compensation and benefits

 ( 1,140
)

 ( 1,708
)

 Accrued
 content license fees

 ( 464
)

 —

 Liabilities
 to users

 ( 861
)

 2,199

 Other
 current liabilities

 2,612

 ( 939
)

 Other
 liabilities

 1,765

 2,078

 Net
 cash used in operating activities

 ( 3,565
)

 ( 1,249
)

 Cash
 Flows From Investing Activities

 Expenditures
 for capitalized software development costs

 ( 3,309
)

 ( 10,058
)

 Payments
 for content licensing arrangements

 —

 ( 6,000
)

 Purchases
 of gaming licenses

 ( 411
)

 ( 1,115
)

 Purchases
 of property and equipment

 ( 3,095
)

 ( 1,930
)

 Net
 cash used in investing activities

 ( 6,815
)

 ( 19,103
)

 Cash
 Flows From Financing Activities

 Proceeds
 from issuance of long-term debt

 42,000

 30,000

 Paydown of debt principle

 ( 30,000
)

 —

 Payment of premiums on debt extinguishment

 ( 7,267
)

 —

 Payment of debt issuance costs

 ( 3,137
)

 ( 2,425
)

 Proceeds
 from exercise of share options

 Proceeds
 from issuance of ordinary shares upon ESPP purchase

 Repurchases
 of ordinary shares

 —

 ( 1,006
)

 Repurchase
 of restricted shares to pay tax liability

 ( 517
)

 ( 184
)

 Net
 cash provided by financing activities

 1,347

 27,448

 Effect
 of foreign exchange rates on cash

 1,691

 ( 653
)

 Net
 increase (decrease) in cash

 ( 7,342
)

 6,443

 Cash,
 beginning of period

 45,920

 39,477

 Cash,
 end of period

 $
 38,578

 $
 45,920

 Supplemental
 Cash Flow Information

 Cash
 paid (proceeds) for:

 Interest

 $
 1,068

 $
 2,444

 Income
 taxes

 ( 268
)

 Intangible
 assets acquired in business acquisition included in current and long-term liabilities

 —

 24,876

 Accrued
 liability settled through issuance of shares

 —

 Right-of-use
 asset obtained in exchange for new operating lease liabilities

 4,718

 —

 Contract
 asset and contingent liability related to synthetic equity

 1,143

 —

 The
accompanying notes are an integral part of these consolidated financial statements.

 GAN

 NOTES

 (in

 Note
1 – NATURE OF OPERATIONS

 GAN
Limited (the "Parent," and with its subsidiaries, collectively the "Company") is an exempted company limited
by shares, incorporated and registered in Bermuda.

 The
Company is a business-to-business ("B2B") supplier of a proprietary gaming system, GameSTACK ("GameSTACK"),
which is used predominately by the U.S. land-based casino industry. For its B2B customers, GameSTACK is a turnkey technology solution
for regulated real money internet gambling ("real money iGaming" or "RMiG"), online sports gaming, and virtual
simulated gaming ("SIM"). In addition, the Company's B2B segment offers GAN Sports, an in-house online and retail sports
betting technology platform, through internet connected self-service kiosks deployed at casino properties and mobile solutions. The Company
is also a business-to-consumer ("B2C") developer and operator of an online sports betting and casino platform under its "Coolbet"
brand, providing international users with access through www.coolbet.com to its sportsbook, casino games and poker products. The Company
operates its B2C segment in markets across Northern Europe, Latin America, and Canada.

 On
November 7, 2023, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with SEGA SAMMY CREATION
INC., a Japanese corporation ("SEGA SAMMY CREATION"), and Arc Bermuda Limited, a Bermuda exempted company limited by shares
and a wholly-owned subsidiary of SEGA SAMMY CREATION ("Merger Sub"), pursuant to which, subject to the satisfaction or waiver of the conditions
set forth therein, Merger Sub will be merged with and into the Company, with the Company surviving the merger as a wholly-owned subsidiary
of SEGA SAMMY CREATION (the "Merger"). SEGA SAMMY CREATION and Merger Sub are affiliates of SEGA SAMMY HOLDINGS, INC.

to the Merger Agreement, and upon the terms and subject to the conditions thereof, at the effective time of the Merger, and as a result
of the Merger (and without any action on the part of SEGA SAMMY CREATION, Merger Sub, the Company or any holder thereof):

 each
 of the Company's ordinary shares issued immediately prior to the effective time of the Merger (other than shares held by SEGA SAMMY CREATION
 or Merger Sub, by the Company as a treasury share or by any person who properly asserts dissenters' rights under Bermuda law)
 will be converted into the right to receive an amount in cash equal to $ 1.97 per share, without interest and subject to any applicable
 tax withholding (the "Merger Consideration");

 each
 of the Company's outstanding restricted shares (whether vested or unvested) at the time of the Merger will become vested in
 full and non-forfeitable and will be converted into the right to receive the Merger Consideration;

 each
 of the Company's outstanding restricted share units (whether vested or unvested) at the effective time of the Merger will become
 vested in full and will be automatically cancelled in exchange for the right to receive a single lump sum cash payment, without interest
 and subject to any applicable tax withholding, equal to the product of (a) the Merger Consideration and (b) the number of Company
 ordinary shares subject to such restricted share unit; and

 each
 of the Company's outstanding options to acquire the Company ordinary shares (whether vested or unvested) at the effective time
 of the Merger will become vested in full and will be automatically cancelled in exchange for the right to receive a single lump sum
 cash payment, without interest and subject to any applicable tax withholding, equal to the product of (a) the excess, if any, of
 the Merger Consideration over the exercise price per share of the option and (b) the number of Company ordinary shares issuable upon
 the exercise in full of such option.

 Consummation
of the Merger is not subject to a financing condition, but is subject to customary closing conditions, including (a) approval by the
Company's shareholders of the Merger Agreement, the Merger and the Statutory Merger Agreement, (b) receipt of applicable
antitrust and CFIUS approvals or the expiration of applicable waiting periods, (c) absence of any order or injunction prohibiting
the consummation of the Merger and (d) the accuracy of the Company's representations and warranties contained in the Merger
Agreement (subject to certain customary qualifications) and compliance by the Company with its agreements and covenants contained in
the Merger Agreement. The closing of the Merger is also predicated upon receipt of approval of the Merger and change in control of
the Company by all relevant gaming authorities. The Company anticipates that this will take some time, and that the closing of the
Merger may not occur until late 2024 or early 2025.

 On
February 13, 2024, the Company held a special general meeting of the shareholders of the Company to consider and vote upon the
Merger Agreement, at which the shareholders approved the Merger Agreement.

 Note
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 Basis
of Presentation and Principles of Consolidation

 The
consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States
of America ("U.S. GAAP") and include the results of the Parent and its wholly-owned subsidiaries. All intercompany accounts
and transactions have been eliminated in consolidation.

the second quarter of 2023, the Company completed a reorganization which resulted in the Company reclassifying its operating expenses between
the sales and marketing, product and technology, and general and administrative.

 The
following table provides the impact of operating expense reclassification for the year ended December 31, 2022.

 SCHEDULE OF IMPACT OF OPERATING EXPENSE RECLASSIFICATION

 For the Year Ended

 December 31, 2022

 As previously

 Impact of operating

 As currently

 reported

 expense reclassification

 reported

 Operating expenses

 Sales and marketing

 $
 28,095

 $

 $
 28,303

 Product and technology

 26,345

 8,850

 35,195

 General and administrative (1)

 46,906

 ( 9,058
)

 37,848

 Total operating expenses

 $
 101,346

 $
 —

 $
 101,346

 (1)
 Excludes depreciation
and amortization expense.

 Liquidity

 The
accompanying consolidated financial statements have been prepared on the going concern basis. As of December 31, 2023, the Company had
an accumulated deficit of $ 309.3 million, with cash of $ 38.6 million and liabilities to users of $ 10.2 million. During the year ended
December 31, 2023, the Company incurred a net loss of $ 34.4 million. The Company used $ 3.6 million of cash in operations during the year
ended December 31, 2023. In April 2022, a subsidiary of the Company entered into a $ 30.0 million term credit facility with net proceeds
of $ 27.6 million (the "Credit Facility").

 GAN LIMITED

 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 (in thousands, except share and per share amounts)

 Additionally,
the Company's current financial condition, liquidity resources and planned near-term cash flows from operations are sensitive to
changes in macro-economic conditions and the substantial variability inherent in the Company's wager-based revenues streams. These
factors along with the potential covenant breaches indicate uncertainty related to the ability of the Company to meet its current obligations
as they come due.

 In
the fourth quarter of 2022, the Company initiated plans to address its liquidity needs and improve its operations and cash position by
(i) reducing and deferring personnel and operational costs for non-strategic initiatives, (ii) amending the Credit Facility to reduce
cash interest obligations and amend financial covenants, (iii) identifying sources of additional capital, (iv) continuing investment
in the growth areas of the Company's consolidated operations, (v) continuing cost saving initiatives first implemented during the
year ended December 31, 2022, and (vi) initiating a strategic review process to assess a range of strategic alternatives.

 On
April 13, 2023, a subsidiary of the Company executed agreements to amend the Credit Facility to waive events of default, amend
certain financial covenants, assign the rights to the Credit Facility from its existing lender to a third party, and increase the
principal balance from $ 30.0
million to $ 42.0
million with accrued paid in-kind ("PIK") interest of 8.0 %
per year (together, forming the "Amended Credit Facility"). The Amended Credit Facility became effective upon cash
settlement of payments completed on April 14, 2023, and represented a cure of any events of default under the Credit Facility and
thereby prevented any amounts from becoming due and payable under the Credit Facility's subjective acceleration clause. The
Amended Credit Facility contains a financial covenant, among other covenants, requiring minimum liquidity of $ 10.0
million. Management believes the executed Amended Credit Facility and intent and ability to complete the remaining cost mitigation
plans alleviate uncertainty regarding the ability to meet its current obligations as they come due for at least one year from
the issuance of the consolidated financial statements. The Company was in compliance with all financial covenants associated with
its Credit Facility as of December 31, 2023, however given the Company's cash flow and net losses for the year ended December
31, 2023, historical performance, and reasonably estimable near-term future cash flows, it is possible that the Company could
violate a financial covenant in the future which could trigger an acceleration of all amounts due and the termination of commitments
under the Credit Facility. We expect to maintain compliance for at least one year from the issuance of the consolidated financial statements.

 To
the extent that the Company's current resources, including its ability to generate operating cash flows, are insufficient to
satisfy its cash requirements, the Company may seek additional equity or debt financing. The Company's ability to do so
depends on prevailing economic conditions and other factors, many of which are beyond management's control. The Company does
not currently have any such credit facilities or similar debt arrangements in place, outside of the Amended Credit Facility as
described above, and cannot provide any assurance as to the availability or terms of any additional future financing that it may
require to support its operations. If the needed financing is not available, or if the terms of financing are less desirable than
expected, the Company may be forced to decrease its level of investment in new products and technologies, discontinue further
expansion of the business, or scale back its existing operations, any of which could have an adverse impact on
the Company and its financial prospects.

 Use
of Estimates

 The
preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated
financial statements and the reported amounts of revenues and expenses during the reporting period. Due to the inherent uncertainties
involved in making estimates, actual results could differ from the original estimates, and may require significant adjustments to these
reported balances in future periods.

 Foreign
Currency Translation and Transactions

 The
Company's reporting currency is the U.S. Dollar while the Company's foreign subsidiaries use their local currencies as their
functional currencies. The assets and liabilities of foreign subsidiaries are translated to U.S. Dollars based on the current exchange
rate prevailing at each reporting period. Revenue and expenses are translated into U.S. Dollars using the average exchange rates prevailing
for each period presented. Translation adjustments that arise from translating a foreign subsidiary's financial statements from
their functional currency to U.S. Dollars are reported as a separate component of accumulated other comprehensive loss in shareholders'
equity (deficit).

 Gains
and losses arising from transactions denominated in a currency other than the functional currency are included in general and administrative
expense in the consolidated statements of operations as incurred. Foreign currency transaction and remeasurement gains and losses were
a net loss of $ 2,104 and $ 969
 for the years ended December 31, 2023 and 2022,
respectively.

 Concentration
of Credit Risk

 Financial
instruments that potentially subject the Company to concentration of credit risk consist primarily of its cash and trade receivables.
The Company holds cash deposits in foreign countries, primarily in Northern Europe and Latin America, of approximately $ 30.7 million,
which are subject to local banking laws and may bear higher or lower risk than cash deposited in the United States. Cash held in the
United States is maintained in a major financial institution in excess of federally insured limits. As part of our cash management processes,
the Company performs periodic evaluations of the credit standing of the financial institutions and we have not sustained any credit losses
from instruments held at these financial institutions. Additionally, the Company maintains an allowance for potential credit losses,
but historically has not experienced any significant losses related to individual customers or groups of customers in any particular
geographic area.

 Risks
and Uncertainties

 Macroeconomic
conditions can materially adversely affect the Company's business, results of operations and financial condition. Recent adverse
macroeconomic conditions, including inflation, higher interest rates, slower growth or recession, the strengthening of the U.S. dollar,
and corresponding currency fluctuations can have an adverse material impact on the Company's future results of operations, cash
flows, and financial condition, particularly with respect to foreign currency adjustments relating to our international operations. Such
conditions may also affect consumers' willingness to make discretionary purchases, and therefore the Company, along with its casino
operator customers, may experience a decline in wagering. A downturn in the economic environment can also lead to increased credit and
collectability risk on the Company's trade receivables, limitations on the Company's ability to issue new debt, and reduced
liquidity.

 GAN

 NOTES

 (in

Recognition

from B2B Operations

 The
Company's revenue from its B2B operations are primarily from its internet gaming Software-as-a-Service ("SaaS") platform,
GameSTACK, that its customers use to provide real money internet gambling ("RMiG"), online sports gaming and simulated internet
gaming ("SIM") to its end users. The Company enters into contracts with its customers that generally range from three to
five years and include renewal provisions. These contracts generally include provision of the internet gaming platform, content consisting
of proprietary and third-party games, development services and support and marketing services. In certain cases, the contract may include
computer hardware to be procured on behalf of the customer. The customers cannot take possession of the hosted GameSTACK software and
the Company does not sell or license the GameSTACK software.

 The Company
charges fees as consideration for use of its internet gaming system, game content, support and marketing services based on a fixed
percentage of the casino operator's net gaming revenue or net sportsbook win, at the time of settlement of an event for RMiG
contracts, considered usage-based fees, or at the time of purchase for in-game virtual credit for SIM contracts. The determination
of the fee charged to its customers is negotiated and varies significantly. Certain of these RMiG contracts provide the Company with
a minimum monthly revenue guarantee in relation to the Company's share of the casino operator's net gaming revenue or
net sportsbook win. At December 31, 2023, the remaining unsatisfied performance obligations related to fixed minimum guaranteed
revenue totaled $ 48.6
million which the
Company expects to satisfy $34.7 million within the next five-year period, and the remaining over a ten-year period.

 The
Company's promise to provide the RMiG SaaS platform and content licensing services on the hosted software is a single performance
obligation. This performance obligation is recognized over time, as the Company provides services to its customers in its delivery of
services to the player end user. The Company's customers simultaneously receive and consume the benefits provided by the Company
as it delivers services to its customers. Usage based fees are considered variable consideration as the service is to provide unlimited
continuous access to its hosted application and usage of the hosted system is primarily controlled by the player end user. The transaction
price includes fixed and variable consideration and is billed monthly with the amount due generally thirty days from the date of the
invoice. Variable consideration is allocated entirely to the period in which consideration is earned as the variable amounts relate specifically
to the customer's usage of the platform that day and allocating the usage-based fees to each day is consistent with the allocation
objective, primarily that the change in amounts reflect the changing value to the customer. The Company's internet gaming system,
game content, support and marketing services are provided equally throughout the term of the contract. These services are made up of
a daily requirement to provide access and use of the internet gaming system and optional support and marketing services to the customer
over the same period of time. The series of distinct services represents a single performance obligation that is satisfied over time.

 Purchases
of virtual credits within a transaction period on the SIM platform, generally a monthly convention, are earned over time, and are typically
billed monthly upon the close of the respective period as the credit has no monetary value, cannot be redeemed, exchanged, transferred
or withdrawn, represents solely a device for tracking game play during the month, does not obligate the Company to provide future services
and the arrangements with the customer and player end user have no substantive termination penalty. In certain service agreements with
its SIM customers, the fees collected by the Company from third-party payment processors for the purchases of in-game virtual credits
made by end-users include the SIM customer's portion. The Company records the SIM customer's portion as a liability as cash
is collected and remits payment to the SIM customer for their share of the SIM revenues monthly. At December 31, 2023 and 2022, the Company recorded a liability due to its customers for their share of the fees of $ 1,994 and $ 1,628, respectively, within other current liabilities
in the consolidated balance sheets.

 The
Company uses third-party content providers in supplying game content in its performance of providing game content on its platform to
its customers. A customer has access to the Company's propriety and licensed game content and additionally, the customer can direct
the Company to procure third-party game content on its behalf. The Company has determined it acts as the principal for providing the
game content when the Company controls the game content, and therefore presents the revenue on a gross basis in the consolidated statements
of operations. When the customer directs the Company to procure third-party game content, the Company determined it is deemed an agent
for providing such game content, and therefore, records the revenue, net of the costs of content license fees, in the consolidated statements
of operations.

 GAN

 NOTES

 (in

 The
Company also provides ongoing development services involving updates to the RMiG platforms for enhanced functionality or customization.
Ongoing development services are typically billed monthly, at a daily rate, for services performed. Revenue from RMiG platform development
services that are identified as distinct performance obligations and enhance or create an asset the customer controls as the Company
performs the services are recognized over time as services are performed. This revenue is measured using an input method based on effort
expended, which uses direct labor hours incurred. These services have primarily related to post-launch development of third-party application
integration software in the customer's environment. Separately, the revenue generated from customers for development services that
are distinct performance obligations and the customer benefits from the integrated SaaS offering are deferred over the license service
term. These services have primarily related to enhancements to the Company's platforms that do not enhance or create an asset the
customer controls. In customer contracts that require a portion of the consideration to be received in advance, or at the commencement
of the contract, such amounts are recorded as a contract liability.

 Other
services include the resale of a third-party computer hardware, such as servers and other related hardware devices, upon which the GameSTACK
software is installed for its customers. These products are not required to be purchased in order to access the GameSTACK platform but
are sold as a convenience to the customer. The Company procures the computer hardware on the customer's behalf for a fee determined
based on cost of the computer hardware plus a markup. The Company charges a hardware deployment fee which is a one-time fee for installation,
testing and certification of the computer hardware at the gaming hosting facility. Revenue is recognized at the point in time when control
of the hardware transfers to the customer. Control is transferred after the hardware has been procured, delivered, installed at the customer's
premises and configured to allow for remote access.

 The
Company has determined that it is acting as the principal in providing computer hardware and related services as it assumes responsibility
for procuring, delivering, installing and configuring the hardware at the customer's location and takes control of the hardware,
prior to transfer. Revenue is presented at the gross amount of consideration to which it is entitled from the customer in exchange for
the computer hardware and related services.

 Contracts
with Multiple Performance Obligations

 For
customer contracts that have more than one performance obligation, the transaction price is allocated to the performance obligations
in an amount that depicts the relative stand-alone selling prices of each performance obligation. Judgment is required in determining
the stand-alone selling price for each performance obligation. In determining the allocation of the transaction price, an entity is required
to maximize the use of observable inputs. When the stand-alone selling price of a good or service is not directly observable, an entity
is required to estimate the stand-alone selling price. Contracts with its customers may include platform and licensing of game content
services, as well as development services and computer hardware services. The variable consideration generated from the platform and
the licensing of game content is allocated entirely to the performance obligations for platform and licensing of game content services
and the remaining fixed fees for development services and computer hardware would be allocated to each of the remaining performance obligation
based on their relative stand-alone selling prices. The variable consideration relates entirely to the effort to satisfy the platform
and licensing game content services and the fixed consideration relates to the remaining performance obligations which is consistent
with the allocation objective.

 GAN

 NOTES

 (in

from B2C Gaming Operations

 The
Company operates the B2C gaming site www.coolbet.com outside of the U.S., which contains proprietary software and includes the following
product offerings: sportsbook, poker, casino, live casino and virtual sports.

 The
Company manages an online sportsbook allowing users to place various types of wagers on the outcome of sporting events conducted around
the world. The Company operates as the bookmaker and offers fixed odds wagering on such events. When a user's wager wins, the Company
pays the user a pre-determined amount known as fixed odds. Revenue from online sportsbook is reported net after deduction of player winnings
and bonuses. Revenue from wagers is recognized when the outcome of the event is known.

 The
Company offers live casino through its digital online casino offering in select markets, allowing users to place a wager and play games
virtually at retail casinos. The Company offers users a catalog of over 6,000 third-party iGaming products such as digital slot machines
and table games such as blackjack and roulette. Revenue from casino games is reported net after deduction of winnings, jackpot contribution
and customer bonuses.

 Peer-to-peer
poker offerings allow users to play poker against one another on the Company's online poker platform for prize money. Revenue is
recognized as a percentage of the reported rake. Additionally, the Company offers tournament poker which allows users to buy-in for a
fixed price for prize money. For tournament play, revenue is recognized for the difference between the entry fees collected and the amounts
paid out to users as prizes and winnings.

 In
each of the online gaming products, a single performance obligation exists at the time a wager is made to operate the games and award
prizes or payouts to users based on a particular outcome. Revenue is recognized at the conclusion of each contest, wager, or wagering
game hand. Additionally, certain incentives given to users, for example, that allow the user to make an additional wager at a reduced
price, may provide the user with a material right which gives rise to a separate performance obligation.

 The
Company allocates a portion of the user's wager to incentives that create material rights that are redeemed or expired in the future.
The allocated revenue for gaming wagers is primarily recognized when the wagers occur because all such wagers settle immediately.

 The
Company applies a practical expedient by accounting for revenue from gaming on a portfolio basis because such wagers have similar characteristics,
and the Company reasonably expects the effects on the financial statements of applying the revenue recognition guidance to the portfolio
to not differ materially from that which would result if applying the guidance to an individual wagering contract.

 Cost
of Revenue

 Cost
of revenue consists primarily of variable costs. These include mainly (i) content license fees, (ii) payment processing fees and chargebacks,
(iii) platform technology, software, and connectivity costs directly associated with revenue generating activities, (iv) gaming duties,
and (v) sportsbook feed / provider services. The Company incurs payment processing fees on B2C user deposits, withdrawals, and deposit
reversals from payment processors. Cost of revenue excludes depreciation of the servers on which the Company's gaming platforms
reside as well as amortization of intangible assets including internally developed software.

 Sales
and Marketing

 Sales
and marketing expense primarily consists of general marketing and advertising costs, B2C user acquisition expenses and personnel costs
within our sales and marketing functions. Sales and marketing costs are expensed as incurred.

 Product
and Technology

 Product
and technology expenses consist primarily of personnel costs associated with development and maintenance activities that are not capitalized.
These costs primarily represent employee expenses (including but not limited to, salaries, bonus, employee benefits, employer tax expenses,
and stock-based compensation) for personnel and contractors involved in the design, development, and project management of our proprietary
technologies as well as developed and licensed content.

 General
and Administrative

 General
and administrative expenses consist of costs, including gaming operations costs, not related to sales and marketing, product and technology
or revenue. General and administrative costs include professional services (including legal, regulatory and compliance, audit, and consulting
expenses), rent, contingencies, insurance, allowance for credit losses, foreign currency transaction gains and losses, and costs related
to the compensation of executive and non-executive personnel, including stock-based compensation.

 Content
Licensing Fees

 Content
licensing fees are paid to third parties for gaming content which are expensed as incurred. Content licensing fees are calculated as
a percentage of net gaming revenues in respect of the third-party games, as stipulated in the third-party agreements.

 GAN

 NOTES

 (in

 Share-based
Compensation

 Share-based
compensation expense is recognized for share options and restricted shares issued to employees and non-employee members of the Company's
Board of Directors. The Company's issued share options and restricted shares, which are primarily considered equity awards and
include only service conditions, are valued based on the fair value of these awards on the date of grant. The fair value of the share
options is estimated using a Black-Scholes option pricing model and the fair value of the restricted shares (restricted share awards
and restricted share units) is based on the market price of the Company's shares on the date of grant.

 Certain
restricted share units awards issued to non-employee members of the Company's Board of Directors permit shares upon vesting to
be withheld, as a means of meeting the non-employee director's tax withholding requirements, and paid in cash to the non-employee
director. The Company additionally incurs share-based compensation expense under compensation arrangements with certain of its employees
under which the Company will settle bonuses for a fixed dollar amount by issuing a variable number of shares based on the Company's
stock price on the settlement date. These awards are classified as liability-based awards which are measured based on the fair value
of the award at the end of each reporting period until settled. Related compensation expense is recognized based on changes to the fair
value over the applicable service period.

 Share-based
compensation is recorded over the requisite service period, generally defined as the vesting period. For awards with graded vesting and
only service conditions, compensation cost is recorded on a straight-line basis over the requisite service period of the entire award.
Forfeitures are recorded in the period in which they occur.

 Loss
Per Share, Basic and Diluted

 Basic
loss per share is calculated by dividing the net loss by the weighted average number of ordinary shares outstanding during the year.
In periods of loss, basic and diluted per share information are the same.

 Cash

 Cash
is comprised of cash held at the bank and third-party service providers. The Company is required to maintain compensating cash balances
to satisfy its liabilities to users. Such balances are included within cash in the consolidated balance sheets and are not subject to
creditor claims. At December 31, 2023 and 2022, the related liabilities to users were $ 10,185 and $ 10,683, respectively.

 Accounts
Receivable, net

 Accounts
receivable are stated at invoiced amounts and are unsecured, non-interest bearing and generally have 30-day payment terms.

 The
Company maintains an allowance for doubtful accounts that reduces receivables to amounts expected to be collected. Management estimates
the allowance for doubtful accounts by assessing the probability of non-payment of the receivable. On confirmation that the account receivable
will not be collected, the gross carrying value of the asset is written off against the related allowance for doubtful accounts. Due to the nature of our customer population, the provision for credit losses has primarily been based on specific identification and
has not been significant historically. The
provision for credit losses on accounts receivable is recorded in general and administrative expense in the accompanying consolidated
statements of operations.

 GAN

 NOTES

 (in

 The
activity in the allowance for doubtful accounts was as follows:

 SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS

 2023

 2022

 Beginning balance

 $

 $

 Provision for expected credit losses

 ( 6
)

 ( 34
)

 Write-offs, net of recoveries

 —

 Ending balance

 $

 $

 Capitalized
Software Development Costs, net

 The
Company capitalizes certain development costs related to its internet gaming platforms during the application development stage. Costs
associated with preliminary project activities, training, maintenance and all other post implementation stage activities are expensed
as incurred. Software development costs are capitalized when application development begins, it is probable that the project will be
completed, and the software will be used as intended. The Company capitalizes certain costs related to specific upgrades and enhancements
when it is probable that expenditures will result in additional functionality of the platform to its customers. The capitalization policy
provides for the capitalization of certain payroll and payroll related costs for employees who spent time directly associated with development
and enhancements of the platform.

 Capitalized
software development costs are amortized on a straight-line basis over their estimated useful lives, which generally ranges from three
to five years, and are included within depreciation and amortization expense in the accompanying consolidated statements of operations.

represents the excess of the fair value of the consideration transferred over the estimated fair values of the identifiable assets acquired
and liabilities assumed on the acquisition date. The Company has recorded goodwill primarily from its acquisition of Coolbet in January
2021. Goodwill is not amortized, but rather is reviewed for impairment annually (as of October 1st) or more frequently if facts or circumstances
indicate that it is more-likely-than-not the fair value of a reporting unit may be below its carrying amount.

 The
Company has determined that it has two reporting units: B2C and B2B. In its goodwill impairment testing in each segment, the Company
has the option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of the reporting
unit, including goodwill, is less than its carrying amount prior to performing the quantitative impairment test. The qualitative assessment
evaluates various events and circumstances, such as macro-economic conditions, industry and market conditions, cost factors, relevant
events and financial trends that may impact a reporting unit's fair value. If it is determined that the estimated fair value of
the reporting unit is more-likely-than not less than its carrying amount, including goodwill, the quantitative goodwill impairment test
is required. Otherwise, no further analysis would be required.

 If
the quantitative impairment test for goodwill is deemed necessary, this quantitative impairment analysis compares the fair value of the
Company's reporting unit to its related carrying value. If the fair value of the reporting unit is less than its carrying amount,
goodwill is written down to the fair value and an impairment loss is recognized. If the fair value of the reporting unit exceeds its
carrying amount, no further analysis is required. Fair value of the reporting unit is determined using valuation techniques, primarily
using discounted cash flow analysis.

 ASC
Topic 350 requires that goodwill be tested for impairment between annual tests if an event occurs or circumstances change that would
more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company performed a qualitative and quantitative
impairment test as of June 30, 2022 which resulted in an impairment to goodwill of $ 28.9 million. The Company performed an additional
qualitative assessment as of September 30, 2022 to determine whether events or circumstances such as those described in ASC 350-20-35-3C
existed and concluded that, due to the significant and sustained decline in share price and market capitalization of the Company since
the Coolbet acquisition, such triggers existed during the current interim period; therefore, an interim quantitative impairment test
was performed. The Company did not recognize an additional impairment to goodwill as a result of its interim impairment test as of September
30, 2022, nor as a result of its annual impairment test as of October 1, 2022.

 In
December 2022, the Company revised its long-term plan as a result of material reductions in its expected future cash flows from its B2B
segment, a strategic decision not to pursue and invest further in its original content strategy, and a re-assessment of its growth strategy
related to its B2C segment. As a result, the Company identified negative market indicators and trends related to the value of its reporting
units. These events and circumstances indicated impairment may be probable and an additional quantitative goodwill impairment assessment
as of December 31, 2022 was performed.

 The
Company estimated the fair value of all reporting units utilizing both a market approach and an income approach (discounted cash flow)
and the significant assumptions used to measure fair value include discount rate, terminal value factors, revenue and EBITDA multiples,
and control premiums.

 The
income approach used to test the Company's reporting units includes the projection of estimated operating results and cash flows,
discounted using a weighted-average cost of capital ("WACC") that reflects current market conditions appropriate to each
reporting unit. Those projections involve the Company's best estimates of economic and market conditions over the projected period,
including growth rates in revenues and costs and best estimates of future expected changes in operating margins and cash expenditures.
Other significant assumptions and estimates used in the income approach include terminal value growth rates, future estimates of capital
expenditures and changes in future working capital requirements. In addition, the WACC utilized to discount estimated future cash flows
is sensitive to changes in interest rates and other market rates in place at the time the assessment is performed.

 The
market approach used to test the Company's reporting units included the review of revenue and EBITDA multiples from other publicly
traded companies in the industry used to derive their enterprise values and the application of those multiples to the relevant earnings
streams within each reportable segment of the Company.

 The
Company confirmed the reasonableness of the estimated reporting unit fair values under the income and market approaches by reconciling
those fair values to its enterprise value and market capitalization. Data points from other market participants were additionally used
which indicated that the lower end of valuation ranges related to our B2C segment may be indicated until regulatory uncertainties were
clarified.

 As
a result of its impairment test performed as of December 31, 2022, the Company recognized an impairment to goodwill of $ 108.0 million.
During the year ended December 31, 2022, the Company recognized total impairment to goodwill of $ 136.9 million. No such impairment was
recognized during the year ended December 31, 2023, as the balance was fully impaired in the prior year.

 GAN

 NOTES

 (in

 Long-lived
Assets

 Long-lived
assets, except goodwill, consist of property and equipment, and finite lived acquired intangible assets, such as developed software,
gaming licenses, trademarks, trade names and customer relationships. Intangible assets are amortized on a straight-line basis over their
estimated useful lives. The Company considers the period of expected cash flows and underlying data used to measure the fair value of
the intangible assets when selecting the estimated useful lives.

 Gaming
licenses include license applications fees and market access payments in connection with agreements that the Company enters into with
strategic partners. The market access arrangements authorize the Company to offer online gaming and online sports betting in certain
regulated markets. These costs are capitalized and amortized on a straight-line basis over their estimated useful lives, beginning with
the commencement of operations.

 The
fair value of the acquired intangible assets is primarily determined using the income approach. In performing these valuations, the Company's
key underlying assumptions used in the discounted cash flows were projected revenue, gross margin expectations and operating cost estimates.
There are inherent uncertainties and management judgment is required in these valuations.

 Long-lived
assets, except goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of
an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the
Company compares the undiscounted cash flows expected to be generated by that asset or asset group to their carrying amount. If the carrying
amount of the long-lived asset or asset group are not recoverable on an undiscounted cash flow basis, an impairment charge is recognized
to the extent that the carrying amount exceeds fair value. Fair value is determined through various techniques, such as discounted cash
flow models using probability weighted estimated future cash flows and the use of valuation specialists.

 In
December 2022, the Company revised long-range plan as a result of material reductions in its expected future cash flows from its B2B
segment, a strategic decision not to pursue and invest further in its original content strategy, and a re-assessment of its growth
strategy related to its B2C segment. In connection with these initiatives, the Company began planning to sunset certain of its
legacy GameSTACK technology (the "Legacy Technology") following the launch of GAN Sports and the rollout of newer
GameSTACK technology developed after its acquisition of Coolbet. These events and circumstances indicated that the carrying amount
of the Company's long-lived assets may not be recoverable and the Company tested these assets for impairment. During the year
ended December 31, 2022 the Company recognized an impairment to its intangible assets and capitalized software development costs of
$ 19.1
million and $ 10.0
million, respectively. There were no such triggering events during the year ended December 31, 2023. Refer to Note 5 – Capitalized
Software Development Costs, net and Note 6 – Goodwill and Intangible Assets for further detail.

 Liabilities
to Users

 The
Company records liabilities for user account balances. User account balances consist of user deposits, promotional awards and user winnings
less user withdrawals and user losses.

 Legal
Contingencies and Litigation Accruals

 On
a quarterly basis, the Company assesses potential losses in relation to pending or threatened legal matters. If a loss is considered
probable and the amount can be reasonably estimated, the Company recognizes an expense for the estimated loss. Estimates of any such
loss are subjective in nature and require the evaluation of numerous facts and assumptions as to future events, including the application
of legal precedent which may be conflicting. To the extent these estimates are more or less than the actual liability resulting from
the resolution of these matters, the Company's financial results will increase or decrease accordingly. Legal costs associated with loss contingencies are expensed as incurred.

 Debt

 Debt
 issuance costs incurred in connection with the issuance of new debt are recorded as a reduction to the long-term debt balance
on the consolidated balance sheets, and amortized over the term of the loan commitment as interest expense in the accompanying consolidated
statements of operations. The Company calculates amortization expense on capitalized debt issuance costs using the effective interest
method in accordance with Accounting Standards Codification ("ASC") 470, Debt.

 GAN

 NOTES

 (in

 Fair
Value of Financial Instruments

 The
Company applies the provisions of ASC 820, Fair Value Measurements and Disclosures, which provides a single authoritative definition
of fair value, sets out a framework for measuring fair value and expands on required disclosures about fair value measurement. Fair value
represents the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous
market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company uses the
following hierarchy in measuring the fair value of the Company's assets and liabilities, focusing on the most observable inputs
when available:

 Level
 1 Quoted prices in active markets for identical assets or liabilities.

 Level
 2 Observable inputs other than Level 1 quoted prices, such as quoted prices for similar assets and liabilities in active markets,
 quoted prices in markets that are not active for identical or similar assets and liabilities, or other inputs that are observable
 or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

 Level
 3 Valuations are based on the inputs that are unobservable and significant to the overall fair value measurement of the assets or
 liabilities. Inputs reflect management's best estimate of what market participants would use in pricing the asset or liability
 at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs
 to the model.

 Valuation
techniques used to measure the fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.

 The Company does not hold any significant Level 2 financial instruments.
Level 3 financial instruments held by the Company include synthetic equity liability due to a customer. See Note 17 – Commitments
and Contingencies for further detail. The instrument includes Level 3 inputs related to the contractual forecasts, in addition to
observable inputs such as the stock volatility of the company, which are utilized in the Company's Monte Carlo valuation. The valuation
is not sensitive to significant movements in the forecast.

 Income
Taxes

 The
Company is subject to income taxes in the United States, U.K., Bulgaria, Israel, Canada, and Malta. The Company records an income tax
expense for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method,
deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the
financial reporting and tax bases of assets and liabilities, as well as for loss and tax credit carryforwards. Deferred tax assets and
liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and
liabilities are expected to be realized or settled. The effect on deferred income tax of a change in tax rates are recorded in the period
of the enactment. Deferred tax assets are reduced, through a valuation allowance, if necessary, by the amount of such benefits that are
not expected to be realized based on current available evidence. In evaluating the Company's ability to recover deferred tax assets
in the jurisdiction from which they arise, all available positive and negative evidence is considered, including results of recent operations,
scheduled reversals of deferred tax liabilities, projected future taxable income, and tax-planning strategies. The Company records a
valuation allowance to reduce its deferred tax assets to the net amount that it believes is more likely than not to be realized.

 The
Company recognizes tax benefits from uncertain tax positions only if management believes that it is more likely than not that the tax
position will be sustained on examination by the taxing authorities based on the technical merits of the position. Although the Company
believes that it has adequately provided for uncertain tax positions, no assurance can be given that the final tax outcome of these matters
would not be materially different. Adjustments are made when facts and circumstances change, such as the closing of a tax audit or the
refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences
would affect the provision for income taxes in the period in which such determination is made and could have a material impact on the
Company's financial condition and operating results. The Company recognizes penalties and interest related to income tax matters
in income tax expense.

 Segments

 The
Company operates in two operating segments, B2B and B2C. Operating segments are defined as components of an enterprise where separate
financial information is evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources
and assess the Company's performance. The Company's CODM is the Chief Executive Officer. The CODM allocates resources and
assesses performance based upon discrete financial information at the operating segment level.

 Recently
Issued Accounting Pronouncements

 In
October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-08,
 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ASU
2021-08 requires an acquirer to measure and recognize contract assets and contract liabilities acquired in a business combination in
accordance with ASC 606, Revenue from Contracts with Customers, rather than using fair value on the acquisition date. This amendment
is effective for fiscal years beginning after December 15, 2022, including interim periods within those annual periods, and should be
applied prospectively to business combinations occurring on or after the effective date. Early adoption is permitted. The Company will
apply the amended guidance on a prospective basis to business combinations that occur on or after January 1, 2023.

 In November 2023,
the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in
this update expand disclosures about a public entity's reportable segments and require more enhanced information about a
reportable segment's significant expenses, interim segment profit or loss, and a description of how a public entity's
chief operating decision marker uses reported segment profit or loss information in assessing segment performance and allocated
resources. The amendments clarify that a single reportable segment entity must apply ASC 280 in its entirety. The update will be
effective for the annual periods beginning after December 15, 2023, or interim periods within fiscal years beginning after December
15, 2024. This ASU is applicable to our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and subsequent
interim periods, with early application permitted. We are currently assessing the effect of this update on our consolidated
financial statements and related disclosures.

 In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures.
The amendments in this update expand disclosures in an entity's income tax rate reconciliation table and regarding cash taxes paid information.
The update will be effective for annual periods beginning after December 15, 2024 and is applicable to our Annual Report on Form 10-K
for the fiscal year December 31, 2025, with early application permitted. We are currently assessing the effect of this update on our consolidated
financial statements and disclosures.

 GAN

 NOTES

 (in

 Note
3 – ACQUISITION

 Content
licensing agreement with Ainsworth Game Technology

 In
the second quarter of 2021, the Company entered into a Content Licensing Agreement (the "Agreement") with Ainsworth Game
Technology, a third-party gaming content provider (the "Content Provider") specializing in developing and licensing interactive
games. The Agreement grants the Company exclusive rights to use and distribute the online gaming content in North America, and the Content
Provider is committed to developing a minimum number of games for the Company's exclusive use over a five-year term, subject to
extensions.

 On
April 5, 2022, the Company amended and restated the Agreement. In accordance with the restated arrangement, the Company amended certain
commercial terms, which included obtaining the contractual right to lease the remote gaming servers, taking possession of the related
software, and obtaining a service contract from the Content Provider for the duration of the arrangement. The total fixed fees remaining
under the amended arrangement totaled $ 25.0 million, of which $ 10.0 million was due during the year ended December 31, 2022 with $ 5.0
million due in each of the years 2023 through 2025. Fixed fee payments are presented in the accompanying consolidated statements of cash
flows as payments for content licensing arrangements within cash flows from investing activities. Additional payments could be required
if the Company's total revenue generated from the arrangement exceed certain stipulated annual and cumulative thresholds during
the contract term.

 The
amended and restated Agreement is accounted for as a business combination as the assets acquired and the liabilities assumed under the
arrangement constitute a business in accordance with ASC 805, Business Combinations. Consideration transferred is comprised of the present
value of the Company's total expected fixed payments under the Agreement, the net assets recognized under the original agreement,
as well as a contingent consideration. The total consideration transferred was $ 24.9 million.

 In
December 2022, the Company identified indicators of impairment associated with the identified intangible assets recorded as part of the
business combination. The Company recognized an impairment of $ 19.1 million associated with the content licensing arrangement. As of
December 31, 2023, the value of intangible assets associated with the business combination was $ 1.1 million, and amortization recognized
for the year ended December 31, 2023 was $ 0.5 million.

 On
March 29, 2023, the Company amended and restated its Content Licensing agreement (the "Amended Agreement") with the Content
Provider which resulted in a reduced contract term ending March 31, 2024 and a reduction in the fixed fees payable under the arrangement
by $ 15.0 million. Under the Amended Agreement, the fixed fee payment schedule was adjusted such that the remaining $ 4.0 million payable
is due in equal installments of $ 0.2 million per calendar month, with the first installment due April 2023. The remaining $ 1.5 million
outstanding at the expiration of the Amended Agreement will be reconciled against amounts payable by the Content Provider to the Company
for revenue generated from the Company's distribution of content. In consideration for the execution of the Amended Agreement,
in March 2023 the Company entered into a Subscription Agreement with the Content Provider, under which the Content Provider subscribed
to 1,250,000 of the Company's ordinary shares. As of December 31, 2023, the remaining liability was $ 2.2 million recorded in content
licensing liabilities within the consolidated balance sheets.

 GAN

 NOTES

 (in

 Note
4 – PROPERTY AND EQUIPMENT, NET

 Property
and equipment, net is recorded in other assets in the consolidated balance sheets at December 31, 2023 and 2022 and consisted of the
following:

 SCHEDULE OF PROPERTY AND EQUIPMENT

 Life (in years)

 2023

 2022

 Estimated Useful

 Life (in years)

 2023

 2022

 Fixtures, fittings and equipment

 3 - 5

 $
 5,052

 $
 4,136

 Platform hardware

 2,251

 2,313

 Total property and equipment, cost

 7,303

 6,449

 Less: accumulated depreciation

 ( 3,144
)

 ( 3,599
)

 Total

 $
 4,159

 $
 2,850

 Depreciation
expense related to property and equipment was $ 1,648 and $ 1,427 for the years ended December 31, 2023 and 2022, respectively.

 GAN

 NOTES

 (in

 Note
5 – CAPITALIZED SOFTWARE DEVELOPMENT COSTS, NET

 Capitalized
software development costs, net at December 31, 2023 and 2022 consisted of the following:

 SCHEDULE OF CAPITALIZED COMPUTER SOFTWARE COSTS, NET

 2023

 2022

 Capitalized software development costs

 $
 10,759

 $
 6,857

 Development in progress

 Total capitalized software development, cost

 11,253

 7,589

 Less: accumulated amortization

 ( 2,883
)

 ( 840
)

 Total

 $
 8,370

 $
 6,749

 In
December 2022, the Company revised its long-range plan as a result of material reductions in its expected future cash flows from its
B2B segment, a strategic decision not to pursue and invest further in its original content strategy, and a re-assessment of its growth
strategy related to its B2C segment. In connection with these initiatives, the Company began planning to sunset certain of its legacy
GameSTACK technology (the "Legacy Technology") following the launch of GAN Sports and the rollout of newer GameSTACK technology
developed after its acquisition of Coolbet. These events and circumstances indicated that the carrying amount of the Company's
capitalized development costs may not be recoverable and the Company tested these long-lived assets for impairment.

 The
Company compared the undiscounted cash flows expected from capitalized development cost asset groups over their remaining useful lives
and determined the Legacy Technology was not recoverable. During the year ended December 31, 2022, the Company recognized an impairment
to its capitalized software development costs of $ 10.0 million. This amount represented the full carrying amount of its Legacy Technology
assets as the Company determined the fair value of these assets to be zero due to significant uncertainties surrounding the Company's
ability to market and sell the Legacy Technology to external market participants. There was no such impairment to capitalized development
costs during the year ended December 31, 2023.

 At
December 31, 2023, development in progress primarily represents costs associated with GAN Sports, costs associated with its newer GameSTACK
technology, and enhancements to the Company's proprietary B2C software platform.

expense related to capitalized software development costs was $ 1,972 and $ 6,166 for the years ended December 31, 2023 and 2022, respectively.

 Note
6 – GOODWILL AND INTANGIBLE ASSETS

 The
changes in the carrying amount of goodwill, by segment, for the year ended December 31, 2022 were as follows:

 SCHEDULE OF GOODWILL

 B2B

 B2C

 Total

 Balance at January 1, 2022

 $
 72,230

 $
 73,912

 $
 146,142

 ( 67,338
)

 ( 69,567
)

 ( 136,905
)

 Effect of foreign currency translation

 ( 4,892
)

 ( 4,345
)

 ( 9,237
)

 Balance at December 31, 2022

 $
 —

 $
 —

 $
 —

 The
Company performs its annual goodwill impairment test as of October 1 and monitors for interim triggering events on an ongoing basis as
events occur or circumstances change that would more likely than not reduce the fair value below its carrying amount. Goodwill is reviewed
for impairment utilizing either a qualitative assessment or a quantitative goodwill impairment test. Due to the significant and sustained
decline in share price and market capitalization of the Company since the Coolbet acquisition, interim quantitative goodwill impairment
assessments were performed as of June 30, 2022 and September 30, 2022.

 The
Company estimated the fair value of all reporting units utilizing both a market approach and an income approach (discounted cash flow)
and the significant assumptions used to measure fair value include discount rate, terminal value factors, revenue and EBITDA multiples,
and control premiums. The Company confirmed the reasonableness of the estimated reporting unit fair values by reconciling those fair
values to its enterprise value and market capitalization. As a result of its interim impairment test performed as of June 30, 2022, the
Company recognized an impairment to goodwill of $ 28.9 million. The Company did not recognize an additional impairment to goodwill as
a result of its interim impairment test as of September 30, 2022, nor as a result of its annual impairment test as of October 1, 2022.

 In
December 2022, the Company revised its long-term plan as a result of material reductions in its expected future cash flows from its B2B
segment, a strategic decision not to pursue and invest further in its original content strategy, and a re-assessment of its growth strategy
related to its B2C segment. As a result, the Company identified negative market indicators and trends related to the value of its reporting
units which resulted in a downward revision to its 2023 budget and long-range plan. These events and circumstances indicated impairment
may be probable and an additional quantitative goodwill impairment assessment as of December 31, 2022 was performed.

 The
Company estimated the fair value of all reporting units utilizing both a market approach and an income approach (discounted cash flow)
and the significant assumptions used to measure fair value include discount rate, terminal value factors, revenue and EBITDA multiples,
and control premiums. The Company confirmed the reasonableness of the estimated reporting unit fair values by reconciling those fair
values to its enterprise value and market capitalization. As a result of its additional impairment test performed as of December 31,
2022, the Company recognized an additional impairment to goodwill of $ 108.0 million.

the year ended December 31, 2022, the Company recognized total impairment to goodwill of $ 136.9 million. As goodwill was written off in the prior year, no such impairment was recognized
during the year ended December 31, 2023.

 GAN

 NOTES

 (in

 Intangible
Assets

 Definite-lived
intangible assets, net consisted of the following:

 SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS

 December 31, 2023

 Gross

 Carrying

 Accumulated

 Net Carrying

 Period (in years)

 Developed technology

 5.0

 $
 34,669

 $
 ( 28,711
)

 $
 5,958

 Customer relationships

 3.3

 6,977

 ( 5,835
)

 1,142

 Trade names and trademarks

 10.0

 5,549

 ( 1,889
)

 3,660

 Gaming licenses

 5.4

 3,617

 ( 2,019
)

 1,598

 $
 50,812

 $
 ( 38,454
)

 $
 12,358

 December 31, 2022

 Gross

 Carrying

 Accumulated

 Net Carrying

 Period (in years)

 Developed technology

 3.9

 $
 33,443

 $
 ( 17,570
)

 $
 15,873

 Customer relationships

 3.1

 6,788

 ( 3,426
)

 3,362

 Trade names and trademarks

 10.0

 5,347

 ( 1,312
)

 4,035

 Gaming licenses

 6.7

 3,149

 ( 1,464
)

 1,685

 $
 48,727

 $
 ( 23,772
)

 $
 24,955

 In
March 2023, the Company amended and restated its Content Licensing Agreement with the Content Provider which resulted in a reduced
contract term. Accordingly, the Company evaluated the ongoing value of the intangible assets associated with its content licensing
arrangement. Based on this evaluation, the Company determined that the third-party content licenses with a carrying amount of $ 18.4
million were no longer recoverable and wrote them down in full. Additionally, the Company determined that the related customer
relationships intangible assets with a carrying amount of $ 2.3
million were no longer recoverable and wrote them down to their estimated fair value of $ 1.6
million. All amounts were recorded within the results reported for the year ending December 31, 2022. Fair value was based on
the expected future cash flows using Level 3 inputs under ASC 820 as well as expected contract term. The cash flows are those
expected to be generated by the market participants, discounted at the risk-free rate of interest. Because negotiations have not yet
concluded, it is reasonably possible that the estimate of the expected future cash flows may change in the near term resulting in
the need to adjust the determination of fair value.

expense related to intangible assets was $ 13,543 and $ 15,581 for the years ended December 31, 2023 and 2022, respectively.

 Estimated
amortization expense for the next five years is as follows:

 SCHEDULE OF FINITE -LIVED INTANGIBLE ASSETS, AMORTIZATION EXPENSE

 2024

 $
 3,036

 2025

 3,009

 2026

 2,553

 2027

 1,954

 2028

 1,806

 Total

 $
 12,358

 GAN

 NOTES

 (in

 Note
7 – DEBT

 On
April 26, 2022, a subsidiary of the Company entered into the Credit Facility which provided
for $ 30.0 million in aggregate principal amount of secured term loans with a floating interest rate of 3-month SOFR (subject to a 1 %
floor) + 9.5 %. The Credit Facility had a maturity date of October 26, 2026 and was fully guaranteed by the Company. There were no scheduled principal
payments due under the Credit Facility until maturity. Interest payments were payable in arrears on the last business day of each calendar
quarter and at the maturity date.

 The
Company incurred $ 2.4 million in debt issuance costs during the year ended December 31, 2023 in connection with the Credit Facility,
which have been recorded as a direct reduction against the debt and amortized over the life of the associated debt as a component of
interest expense using the effective interest method. The net funds received from the Credit Facility, after deducting debt issuance
costs, was $ 27.6 million.

 Subsequent
Amendments

 On
April 13, 2023, a subsidiary of the Company executed agreements to amend the Credit Facility to waive all events of default, amend certain
financial covenants, assign the rights to the Credit Facility from its existing lender to a third party, and increase the principal balance
from $ 30.0 million to $ 42.0 million with accrued paid in-kind ("PIK") interest of 8.0 % per year (together, forming the "Amended
Credit Facility"). The Amended Credit Facility became effective upon cash settlement of payments completed on April 14, 2023, and represented a cure of any events of default under the Credit Facility and thereby prevented any amounts from
becoming due and payable under the Credit Facility's subjective acceleration clause.

 The
Amended Credit Facility matures on the third anniversary of its effective date and is fully guaranteed by the Company. There are no scheduled
principal payments due under the Amended Credit Facility until maturity. The principal balance, accrued PIK interest, and an exit fee
of 2.5 % are due at maturity. The Amended Credit Facility stipulates that outstanding amounts will mature and be due and payable on the
third anniversary of its effective date, or in the event of a change in control transaction. The Company incurred $ 7.3 million in prepayment premiums as part of the settlement of the Credit Facility, and an additional $ 3.1 million in debt
issuance costs in connection with the Amended Credit Facility. The Amended Credit Facility contains customary negative covenants, a financial
covenant requiring minimum liquidity of $ 10.0 million, as well as other financial covenants to be tested solely in the event the Company
raises junior debt during the term of the Amended Credit Facility.

 Debt
Covenants

 The
Credit Facility contained affirmative and negative covenants, including certain financial covenants associated with the Company's
financial results. The negative covenants included restrictions regarding the incurrence of liens and indebtedness, certain merger and
acquisition transactions, asset sales and other dispositions, other investments, dividends, share purchases and payments affecting subsidiaries,
changes in nature of business, fiscal year or organizational documents, transactions with affiliates, and other matters.

 The
Credit Facility contained customary events of default, including, among others: non-payments of principal and interest; breach of representations
and warranties; covenant defaults; the existence of bankruptcy or insolvency proceedings; certain events under ERISA; gaming license
revocations in material jurisdictions; material judgments; and a change of control. If an event of default occurred and was not cured
within any applicable grace period or was not waived, the administrative agent and the lender were entitled to take various actions,
including, without limitation, the acceleration of all amounts due and the termination of commitments under the Credit Facility.

 The
carrying values of the Company's long-term debt consist of the following:

 SCHEDULE OF LONG TERM DEBT

 Effective Interest Rate

 As of December 31, 2023

 Credit Facility

 Principal

 10.22
 %

 $
 44,642

 Less unamortized debt issuance costs

 ( 2,453
)

 Long-term debt, net

 $
 42,189

the years ended December 31, 2023 and 2022, the Company incurred interest expense of $ 4,720 and $ 3,026, respectively, of which $ 1,010
and $ 582 relates to the amortization of debt issuance costs.

 Note
8 – SHAREHOLDERS' EQUITY

 Ordinary

 GAN
Limited's authorized share capital consists of 100 million ordinary shares, par value $ 0.01 per share. Holders of ordinary shares
are entitled to one vote per share on all matters submitted to a vote of holders of ordinary shares. In addition, the ordinary shares
have no right to redemption, conversion or sinking fund rights. Each ordinary share is entitled to dividends if, as and when dividends
are declared by the Board of Directors and subject to a resolution of members, subject to the rights of any other class of shares (if
any) and to the provisions of the Bermuda Companies Act. In the event of liquidation, dissolution or winding up, the holders of ordinary
shares are entitled to share equally and ratably in the assets, if any, remaining after the payment of debt and liabilities.

the years ended December 31, 2023 and 2022, the Company issued an aggregate of 181,516 and 375,416 ordinary shares for the exercise of
share options for gross proceeds of $ 202 and $ 722, respectively.

 2021
Share Repurchase Program

 On
May 31, 2022, the Board of Directors re-authorized and extended the share repurchase program initially authorized on November 30, 2021,
which permitted the Company to purchase up to $ 5.0 million of the Company's outstanding ordinary shares on the Nasdaq Stock Market.
The Company was not obligated to acquire any particular number of shares and repurchases were able to be suspended or terminated at any
time. In June 2022, the Company repurchased 303,113 shares for at a total cost of $ 1.0 million. Repurchases were executed through
open market purchases at the prevailing market price at the time of purchase. The share repurchase program expired on November 3, 2022.

 GAN

 NOTES

 (in

 Note
9 – SHARE-BASED COMPENSATION

 In
April 2020, the Board of Directors established the GAN Limited 2020 Equity Incentive Plan ("2020 Plan") which has been approved
by the Company's shareholders. The 2020 Plan initially provides for grants of up to 4,400,000 ordinary shares, which then increases
through 2029, by the lesser of 4 % of the previous year's total outstanding ordinary shares on December 31 st or as determined
by the Board of Directors, for ordinary shares, incentive share options, nonqualified share options, share appreciation rights, restricted
share grants, share units, and other equity awards for issuance to employees, consultants or non-employee directors. At December 31,
2023, the 2020 Plan provided for grants of up to 9,275,342 ordinary shares and there were 1,287,808 ordinary shares available for future
issuance under the 2020 Plan.

 Share
Options

 A
summary of the share option activity as of and for the year ended December 31, 2023 is as follows:

 SCHEDULE OF SHARE-BASED COMPENSATION, STOCK OPTION ACTIVITY

 Aggregate

 Number of

 Exercise

 Contractual

 Intrinsic

 Price

 Term

 Value

 Outstanding at December 31, 2022

 3,447,155

 $
 9.12

 6.59

 $
 1,139

 Granted

 612,081

 0.01

 Exercised

 ( 181,516
)

 1.12

 Forfeited/expired or cancelled

 ( 1,197,530
)

 13.36

 Outstanding at December 31, 2023

 2,680,190

 $
 5.69

 6.43

 $
 1,877

 Options exercisable at December 31, 2023

 1,737,271

 $
 7.21

 5.18

 $

 The
Company recorded share-based compensation expense related to share options of $ 2,538 and $ 3,194 for the years ended December 31, 2023
and 2022, respectively. Such share-based compensation expense for the years ended December 31, 2023 and 2022 was recorded net of capitalized
software development costs of $ 195 and $ 306, respectively. At December 31, 2023, there was total unrecognized compensation cost of $ 3,017
related to nonvested share options. The unrecognized compensation cost is expected to be recognized over a weighted-average period of
 2.6 years.

 GAN

 NOTES

 (in

the years ended December 31, 2023 and 2022, the Company received proceeds from the exercise of stock options of $ 202 and $ 722, respectively,
and the aggregate intrinsic value of those stock options exercised was $ 620 and $ 485, respectively.

 Share
option awards generally vest 25 % after one year and then monthly over the next 36 months thereafter and have a maximum term of ten years.
During the year ended December 31, 2023, the Board of Directors approved the issuance of options to purchase 612,081 ordinary shares
to employees under the 2020 Plan, including 612,081 share options granted with an exercise price of $ 0.01 per share to certain European-based
employees in lieu of restricted share units. The value of these options are based on the market value of the Company's ordinary
shares at the date of the grant. The weighted average grant date fair value of options granted was $ 1.76 and $ 3.89 for the years ended
December 31, 2023 and 2022, respectively. The grant date fair value of each share option grant was determined using the following weighted
average assumptions:

 SCHEDULE OF SHARE-BASED COMPENSATION, FAIR VALUE ASSUMPTIONS

 2023

 2022

 2023

 2022

 Expected share price volatility

 n.m.

 55.03
 %

 Expected term (in years)

 n.m.

 4.26

 Risk-free interest rate

 n.m.

 1.36
 %

 Dividend yield

 %

 %

 For
options granted during the year ended December 31, 2023, the fair value of each share option award is estimated on the date of grant
using the Black-Scholes option pricing model that uses the assumptions noted above. Estimating the grant date fair values for employee
share options requires management to make assumptions regarding expected volatility of the value of those underlying shares, the risk-free
rate of the expected life of the share options and the date on which share-based compensation is expected to be settled.

 Expected
volatility is determined by reference to volatility of certain identified peer group share trading information and share prices on the
Nasdaq stock exchange. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect
at the time of grant. The expected term of the options is based on historical data and represents the period of time that options granted
are expected to be outstanding. In the current year, volatility, term, and risk-free interest rate were not meaningful inputs as all
options were $ 0.01, and therefore the value of the options were equal
to the underlying value of the shares for the Company's European based employees.

 Restricted
Share Units

 Restricted
share units are issued to non-employee directors and employees. For equity-classified restricted share units, the fair value of restricted
share units is valued based on fair market value of the Company's ordinary shares on the date of grant and is amortized on a straight-line
basis over the vesting period.

 In
March 2023, the Board of Directors approved the issuance of 1,009,086 restricted share units to its employees. The restricted share
units vest over four years from the date of grant. The terms of the awards stipulate that vesting of any outstanding restricted share
units will be pro-rated for employees if their employment terminates after the first anniversary of the grant date.

the second quarter of 2023, the Board of Directors approved the issuance of 296,307 restricted share units to its non-employee directors
and employees. The restricted share units vest over four years from the date of grant. The terms of the awards stipulate that vesting
of any outstanding restricted share units will be pro-rated for employees if their employment terminates after the first anniversary
of the grant date.

 In
August 2023, the Board of Directors approved the issuance of 705,556 restricted share units to its non-employee directors and employees.
The restricted share units vest over four years from the date of grant. The terms of the awards stipulate that vesting of any outstanding
restricted share units will be prorated for employees if their employment terminates after the first anniversary of the grant date.

 In
October 2023, the Board of Directors approved the issuance of 275,000 restricted share units to the Company's recently appointed Interim Chief
Executive Officer. The restricted share units vest over four years from the date of grant. The terms of the awards stipulate that the
equity awards shall accelerate and become fully vested, non-forfeitable, and exercisable in the event that the Interim
Chief Executive Officer is terminated without cause or resigns for good reason.

 GAN

 NOTES

 (in

 The
Company withholds a portion of the restricted share units granted to its officers and non-employee directors upon vesting in order to
remit a cash payment to the officers and directors equal to their tax expense. The liabilities are recorded in accrued compensation and
benefits in the consolidated balance sheets. During the year ended December 31, 2023, 401,735 restricted stock units held by the Company's
officers and non-employee directors vested and the Company repurchased 138,134 of the shares to cover the tax expense incurred by the
officers and non-employee directors.

 The
Company recorded share-based compensation expense related to restricted share units of $ 2,678
 and $ 3,553
 for the years ended December 31, 2023 and 2022,
respectively. At December 31, 2023, there was total unrecognized compensation cost of $ 4,801
 related to nonvested restricted share units.
The unrecognized compensation cost is expected to be recognized over a weighted-average period of 3.06
 years.

 A
summary of the restricted share unit activity as of and for the year ended December 31, 2023 is as follows:

 SCHEDULE OF SHARE BASED COMPENSATION, RESTRICTED STOCK UNIT ACTIVITY

 Number of

 Grant Date

 Fair Value

 Outstanding at December 31, 2022

 1,171,371

 $
 5.43

 Granted

 2,285,949

 1.55

 Vested

 ( 829,895
)

 3.16

 Forfeited/expired or cancelled

 ( 415,181
)

 4.23

 Outstanding at December 31, 2023

 2,212,244

 $
 2.49

 Restricted
Share Awards

 In
December 2021, the Company issued 51,654 restricted ordinary shares to the selling shareholders of Silverback Gaming. The restricted
share awards vest one-third on the acquisition date and one-third on each of the first and second anniversary dates. The restricted share
awards were issued with a grant date fair value of $ 9.68 per share.

 The
Company recorded share-based compensation expense related to the restricted share awards of $ 152
 and $ 167
 for the years ended December 31, 2023 and 2022,
respectively. At December 31, 2023, all compensation cost was recognized upon vesting of shares granted. The total fair value of the
restricted share awards that vested during the year ended December 31, 2023 was $ 166.

 GAN

 NOTES

 (in

 Employee
Bonuses Issued in Shares

 In
2021, the Company entered into agreements with certain executive employees which allowed for a portion, or all, of their annual bonus
for the year ended December 31, 2021 to be paid in the form of the Company's shares. During the year ended December 31, 2022, the
Company settled approximately $ 913 of the total bonus by issuing 189,959 vested options with an exercise price of $ 0.01 per share.

 2020
Employee Stock Purchase Plan

 The
Board of Directors established the 2020 Employee Stock Purchase Plan, or the ESPP, which was approved by the Company's shareholders
in July 2021. The ESPP is intended to qualify under Section 423 of the U.S. Internal Revenue Service Code of 1986, as amended. The ESPP
provides initially for 300,000 ordinary shares to be sold and increases on February 1, 2022 and on each subsequent February 1 through
and including February 1, 2030, equal to the lesser of (i) 0.25 percent of the number of ordinary shares issued and outstanding on the
immediately preceding December 31, (ii) 100,000 ordinary shares, or (iii) such number of ordinary shares as determined by the Board of
Directors.

 The
ESPP is designed to allow eligible employees to purchase ordinary shares, at quarterly intervals, with their accumulated payroll deductions.
The participants are offered the option to purchase ordinary shares at a discount during a series of successive offering periods. The
option purchase price may be the lower of 85 % of the closing trading price per share of the Company's ordinary shares on the first
trading date of an offering period in which a participant is enrolled or 85% of the closing trading price per share on the purchase date,
which will occur on the last trading day of each offering period. An offering period is defined as a three-month duration commencing
on or about March, June, September and December of each year, and one purchase period is included within each offering period. The Company's
first offering period commenced on June 1, 2022. The Company suspended its ESPP in February 2023. The Company issued 57,960 shares under
the ESPP during the year ended December 31, 2023. During the year ended December 31, 2023, the Company recognized share-based compensation
expense of $ 18 related to the ESPP.

 GAN

 NOTES

 (in

 Note
10 – DEFINED BENEFIT CONTRIBUTION PLANS

 U.S.
employees and non-U.S. employees are eligible to participate in defined contribution plans by contributing a portion of their compensation,
which provides for certain matching contributions by the Company. Matching contributions for the U.S. defined contribution plan are 50 %
of up to 4 % of an employee's salary contribution. Most often, non-U.S. matching contributions are statutory amounts required by
law. The Company's contributions to the retirement plans were $ 729 and $ 579 for the years ended December 31, 2023 and 2022, respectively.

 Note
11 – LOSS PER SHARE

 Loss
per ordinary share, basic and diluted, are computed by dividing net loss by the weighted average number of ordinary shares outstanding
during the period. Potentially dilutive securities consisting of certain share options, nonvested restricted shares and restricted share
units were excluded from the computation of diluted weighted average ordinary shares outstanding as inclusion would be anti-dilutive,
are summarized as follows:

 SCHEDULE OF ANTI-DILUTIVE STOCK EXCLUDED FROM COMPUTATION OF DILUTED EARNINGS PER SHARE

 2023

 2022

 2023

 2022

 Share options

 2,680,190

 3,447,155

 Restricted shares

 —

 17,218

 Restricted share units

 2,212,244

 1,171,371

 Total

 4,892,434

 4,635,744

 Note
12 – REVENUE

 The
following table reflects revenue recognized for the years ended December 31, 2023 and 2022 in line with the timing of transfer of services:

 SCHEDULE OF REVENUE RECOGNIZED IN LINE WITH THE TIMING OF TRANSFER OF SERVICES

 2023

 2022

 2023

 2022

 Revenue from services delivered at a point in time

 $
 86,386

 $
 88,331

 Revenue from services delivered over time

 43,033

 53,197

 Total

 $

 $

 Contract Assets

 The Company has
a contract asset related to its synthetic equity arrangement with a customer that was executed on March 30, 2023. The balance of $ 1,133
is recorded within other assets on the consolidated balance sheets and is amortized as contra-revenue over the life of the customer
contract of 10 years.

 Contract
and Contract-Related Liabilities

 The
Company has four types of liabilities related to contracts with customers: (i) cash consideration received in advance from customers
related to development services not yet performed or hardware deliveries not yet completed, (ii) incentive program obligations, which
represents the deferred allocation of revenue relating to incentives in the online gaming operations, (iii) user balances, which are
funds deposited by customers before gaming play occurs and (iv) unpaid winnings and wagers contributed to jackpots. Contract related
liabilities are expected to be recognized as revenue within one year of being purchased, earned or deposited. Such liabilities are recorded
in liabilities to users and other current liabilities in the consolidated balance sheets.

 In August 2023,
WSI US, LLC ("WynnBet") notified the Company of its intent to modify its multi-state revenue contract with the
Company and, in November 2023, the Company completed its negotiations with WynnBet (the "WynnBet modification"). The
results of the renegotiation were primarily to amend performance obligations such that (i) certain states that did not launch
at the modification date would be formally terminated, (ii) certain states that launched prior to the modification date would
have the term reduced, and (iii) states such as Nevada, Massachusetts and New York would renegotiate under more favorable
commercial terms. The total consideration allocated to these modifications was $ 5.0 million which was paid in November 2023. In
addition, WynnBet, agreed to terms for the state of Michigan governed by a separate revenue arrangement that provided WynnBet
with an optional performance obligation for either migration services or termination rights, at their choosing, of $ 5.0
million. Additional consideration was provided related to the Company's right of first refusal to obtain WynnBet's operation in the
state of Michigan amounting to $ 1.8 million. As of December 31, 2023, WynnBet did not exercise any optional items related
to Michigan.

 The Company determined that the remaining performance obligations related to each state that either already
launched or would launch under the modified agreement, and allocated the $ 5.0 million consideration based on the estimated value attributable
to each remaining performance obligation to be recognized over the remaining term.

 The
following table reflects contract liabilities arising from cash consideration received in advance from customers for the periods presented:

 SCHEDULE OF CONTRACT WITH CUSTOMERS

 2023

 2022

 2023

 2022

 Contract liabilities from advance customer payments, beginning of the period

 $
 2,117

 $
 1,874

 Contract liabilities from advance customer payments, end of the period (1)

 7,873

 2,117

 Revenue recognized from amounts included in contract liabilities from advance customer payments at the beginning of the period

 (1)

 Contract
 liabilities from advance customer payments, end of period consisted of $ 3,490 and $ 913 recorded in other current liabilities in the
 consolidated balance sheets at December 31, 2023 and 2022, respectively and $ 4,383 and $ 1,204 recorded in other liabilities in the
 consolidated balance sheet at December 31, 2023 and 2022, respectively.

 GAN

 NOTES

 (in

 Note
13 – SEGMENT REPORTING

 The
Company's reportable segments are B2B and B2C. The B2B segment develops, markets and sells instances of GameSTACK, GAN Sports,
and iSight Back Office technology that incorporates comprehensive player registration, account funding and back-office accounting and
management tools that enable the casino operators to efficiently, confidently and effectively extend their presence online in places
that have permitted online real money gaming. The B2C segment, which includes the operations of Coolbet, develops and operates a B2C
online sports betting and casino platform that is accessible through its website in markets across Northern Europe, Latin America and
Canada.

 Information
reported to the Company's Chief Executive Officer, the CODM, for the purpose of resource allocation and assessment of the Company's
segmental performance is primarily focused on the origination of the revenue streams. The CODM evaluates performance and allocates resources
based on the segment's revenue and contribution. Segment contribution represents the amounts earned by each segment without allocation
of each segment's share of depreciation and amortization expense, sales and marketing expense, product and technology expense,
general and administrative expense, interest costs and income taxes.

 Summarized
financial information by reportable segments for the years ended December 31, 2023 and 2022 is as follows:

 SCHEDULE OF FINANCIAL INFORMATION FOR REPORTABLE SEGMENTS

 B2B

 B2C

 Total

 B2B

 B2C

 Total

 2023

 2022

 B2B

 B2C

 Total

 B2B

 B2C

 Total

 $
 43,154

 $
 86,265

 $

 $
 54,045

 $
 87,483

 $

 8,424

 30,276

 38,700

 11,248

 30,386

 41,634

 Segment contribution

 $
 34,730

 $
 55,989

 $
 90,719

 $
 42,797

 $
 57,097

 $
 99,894

 (1)

 Excludes
 depreciation and amortization expense

the years ended December 31, 2023 and 2022, one customer in the B2B segment individually accounted for 16.4 % and 20.9 % of total revenue,
respectively.

 The
following table presents a reconciliation of segment contribution to the consolidated loss before income taxes for the years ended December
31, 2023 and 2022:

 SCHEDULE OF RECONCILIATION OF CONSOLIDATED SEGMENT CONTRIBUTION TO CONSOLIDATED INCOME (LOSS) BEFORE INCOME TAXES

 2023

 2022

 2023

 2022

 Segment contribution (1)

 $
 90,719

 $
 99,894

 Sales and marketing

 28,972

 28,303

 Product and technology

 38,243

 35,195

 General and administrative (1)

 36,657

 37,848

 —

 Restructuring

 —

 1,771

 Depreciation and amortization

 17,161

 23,276

 Other loss, net

 3,992

 1,047

 Loss before income taxes

 $
 ( 34,306
)

 $
 ( 193,556
)

 (1)

 Excludes
 depreciation and amortization expense

 Assets
and liabilities are not separately analyzed or reported to the CODM and are not used to assist in decisions surrounding resource allocation
and assessment of segment performance. As such, an analysis of segment assets and liabilities has not been included in this financial
information.

 GAN

 NOTES

 (in

 The
following table disaggregates total revenue by product and services for each segment:

 SCHEDULE OF DISAGGREGATION OF REVENUE BY PRODUCTS AND SERVICES FOR EACH SEGMENT

 2023

 2022

 2023

 2022

 B2B:

 Platform and content license fees

 $
 31,466

 $
 43,519

 Development services and other

 11,688

 10,526

 Total B2B revenue

 43,154

 54,045

 B2C:

 Sportsbook

 33,315

 37,902

 Casino

 50,035

 46,888

 Poker

 2,915

 2,693

 Total B2C revenue

 86,265

 87,483

 Total revenue

 $

 $

by location of the customer for the years ended December 31, 2023 and 2022 was as follows:

 SCHEDULE OF REVENUE BY LOCATION OF THE CUSTOMER

 2023

 2022

 2023

 2022

 United States

 $
 31,758

 $
 45,615

 Europe

 47,788

 45,092

 Latin America

 39,935

 44,078

 Rest of the world

 9,938

 6,743

 $

 $

 Note
14 – INCOME TAXES

 GAN
Limited was incorporated in Bermuda solely for the purpose of acting as the new group parent company and public vehicle for investors.
Bermuda, the Company's country of domicile, imposes no taxes on profits, income, dividends, or capital gains.

 The
Company's loss before income taxes for the years ended December 31, 2023 and 2022 consisted of the following:

 SCHEDULE OF INCOME BEFORE INCOME TAX, DOMESTIC AND FOREIGN

 2023

 2022

 2023

 2022

 Domestic

 $
 5,897

 $
 5,504

 Foreign

 28,409

 188,052

 Loss before income taxes

 $
 34,306

 $
 193,556

 GAN

 NOTES

 (in

 The
components of income tax expense (benefit) for the years ended December 31, 2023 and 2022 consisted of the following:

 SCHEDULE
OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT)

 2023

 2022

 2023

 2022

 Current:

 Domestic

 $
 —

 $
 —

 U.S. Federal and State

 Foreign

 1,089

 Total current expense

 1,155

 Deferred:

 Domestic

 —

 —

 U.S. Federal and State

 —

 Foreign

 ( 1,017
)

 2,386

 Total deferred expense (benefit)

 ( 1,017
)

 3,250

 Total income tax expense

 $

 $
 3,942

 The
following is a reconciliation of income taxes computed at the statutory income tax rate to the Company's income tax expense (benefit)
for the years ended December 31, 2023 and 2022:

 SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

 2023

 2022

 2023

 2022

 Income (loss) before income taxes multiplied by the statutory tax rate of 0 %

 $
 —

 $
 —

 Effects of tax rates in foreign jurisdictions

 ( 5,445
)

 ( 19,629
)

 Share-based compensation

 1,154

 Nondeductible officers compensation

 —

 Valuation allowance

 3,430

 10,200

 Unrecognized tax benefit

 Change in tax rates

 —

 Foreign withholding taxes

 Goodwill impairment

 —

 Return to provision

 ( 647
)

 6,805

 Tax on unremitted earnings

 ( 6
)

 Foreign Tax Credit

 ( 84
)

 3,030

 Other

 1,051

 Total income tax expense

 $

 $
 3,942

 GAN

 NOTES

 (in

 Deferred
income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes. Significant components of the net deferred taxes at December 31, 2023
and 2022 are as follows:

 SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

 2023

 2022

 2023

 2022

 Deferred tax assets:

 Net operating loss carryforwards

 $
 20,199

 $
 13,533

 Share-based compensation

 1,314

 Fixed assets and intangibles

 2,608

 8,178

 Accruals and allowances

 Interest

 4,487

 Other

 Total deferred tax assets

 28,629

 24,335

 Valuation allowance

 ( 28,244
)

 ( 24,094
)

 Total deferred tax assets, net of valuation allowance

 Deferred tax liabilities:

 Fixed assets and intangibles

 ( 479
)

 ( 1,157
)

 Prepayments

 ( 57
)

 ( 37
)

 Tax on unremitted earnings

 ( 3,431
)

 ( 3,061
)

 Other

 ( 57
)

 ( 13
)

 Total deferred tax liabilities

 ( 4,024
)

 ( 4,268
)

 Net deferred tax liabilities

 $
 ( 3,639
)

 $
 ( 4,027
)

 The
net deferred tax liability of $ 3,639 agrees to the balance sheet when considering the noncurrent
deferred tax liability presented of $ 3,793
 and the noncurrent deferred tax asset of $ 154
 presented in other assets on the consolidated
balance sheets.

 At
December 31, 2023 and 2022, the Company's valuation allowance was $ 28,244 and $ 24,094, respectively. A valuation allowance is recognized
if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax asset will not
be realized. Management must analyze all available positive and negative evidence regarding realization of the deferred tax assets, such
as cumulative income and losses from prior years, and make an assessment of the likelihood of sufficient future taxable income. The Company
has provided a valuation allowance on the U.S. and foreign deferred tax assets that were not deemed realizable based upon the weight
of the objectively verifiable negative evidence of cumulative losses over the recent three-year period.

2023, we increased our valuation allowance by $ 4,150 to $ 28,244. Changes in 2023 in the valuation allowance primarily due to current U.S. and foreign losses generated, as well
as nondeductible U.S. interest. The amount of the deferred tax assets considered realizable, however, could be adjusted if estimates
of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative
losses is no longer present and additional weight is given to subjective evidence, such as the Company's forecast for growth.

 At
December 31, 2023, the Company had federal, state, and foreign cumulative net operating loss carryforwards generated of $ 24,720, $ 25,751
 and $ 53,459, respectively, on a gross basis. The federal net operating loss carryforwards do not expire. The state net operating loss
carryforwards will begin to expire in 2027 if not utilized. The majority of the foreign net operating loss carryforwards do not expire.
At December 31, 2023, the Company had federal and state U.S. interest limitation carryforward of $ 17,131 and $ 13,384, respectively, on a gross
basis. The federal and state U.S. interest limitation carryforwards do not expire.

 As
of December 31, 2023, the Company has determined it cannot indefinitely reinvest any of its unremitted foreign earnings and has accrued
$ 3,431 of deferred foreign taxes. This amount mainly relates to its earnings in Estonia where taxation is postponed until the profits
are distributed as dividends.

 GAN

 NOTES

 (in

 A
reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 SCHEDULE OF UNRECOGNIZED TAX BENEFITS

 2023

 2022

 Unrecognized tax benefits — January 1

 $

 $

 Additions for tax positions taken in a prior year

 Additions for tax positions taken in current year

 Reductions for tax positions taken in the prior year due to statutes lapsing

 ( 7
)

 ( 4
)

 Other reductions for tax positions taken in the prior year

 ( 1
)

 ( 39
)

 Unrecognized tax benefits — December 31

 $
 1,350

 $

 The
liability for unrecognized tax benefits, including potential interest and penalties, were recorded within other liabilities in the consolidated
balance sheets. As of December 31, 2023 and 2022, we had accrued interest and penalty expense related to uncertain tax positions of
$ 253 and $ 176, respectively, net of income tax benefits. The provision for income taxes for December 31, 2023 and 2022 included interest
and penalty expense related to uncertain tax provisions of $ 76 and $ 124, respectively net of income tax benefits.

 The
Company, including its subsidiaries, files tax returns with U.S. and foreign jurisdictions. The Company is subject to U.K. examinations
by tax authorities for the 2021 and 2022 tax years, although the Company has loss carryforwards from prior years that may still be adjusted.
The Company is subject to U.S. examinations by federal tax authorities for years 2020 to 2022 and by state tax authorities for years
2019 to 2022. The tax returns in Malta, Israel, Bulgaria, and Mexico are still within the examination window of the local tax authorities.
Based on the information currently available, we do not anticipate a significant increase or decrease to our unrecognized tax benefits
within the next 12 months. Audit outcomes and the timing of audit settlements are subject to significant uncertainty. Although the Company
believes that adequate provision has been made for such issues, there is the possibility that the ultimate resolution of such issues
could have an adverse effect on the Company's earnings. If recognized, the total amount of unrecognized tax benefits would impact
the effective tax rate for calendar years 2023 and 2022 by $ 894
 and $ 766,
respectively.

 Note
15 – RESTRUCTURING

 In
January 2022, we implemented a strategic reduction of our existing worldwide global workforce to simplify and streamline our organization
and strengthen the overall competitiveness of our B2B segment. As a result of this initiative, we incurred $ 1.8 million in restructuring
charges related to this plan during the year ended December 31, 2022, which are primarily related to employee severance pay and related
costs. The Company had completed its restructuring plan in 2022 and there were no unpaid restructuring charges as of December 31, 2022.

 GAN

 NOTES

 (in

 Note
16 – LEASES

 The
company determines if an arrangement is a lease and classified as operating or finance lease commencement date. A lease is defined as
a contract, or part of contract, that conveys the right to control the use of an asset for a time period in exchange for consideration.
At December 31, 2023, the Company's lease portfolio consists of operating leases related to office facilities in Estonia and Bulgaria.
The lease terms for both leases are five years. Options to extend or terminate a lease are included in the lease term when it is reasonably
certain that the Company will exercise such options. In some jurisdictions it is customary for lease contracts to provide for payments
to increase each year by inflation, or to be reset periodically to market rental rates or the periodic rent is fixed over the lease term.
Lease payments for operating leases, consisting of fixed payments for base rent, is recognized on a straight-line basis over the lease
term. The Company elected to record short-term lease costs on a straight-line basis over the term of the leases related
to its shared work space facilities primarily in the United States and London, and incurred $ 547 and $ 1,138 for the years ended December
31, 2023 and 2022, respectively.

 SCHEDULE OF OPERATING AND FINANCE LEASE ASSET AND LIABILITY

 As of

 2023

 2022

 Leases

 Classification

 Assets

 Total operating leased assets, net

 Operating lease right-of-use assets (1)

 $
 4,340

 $

 Liabilities

 Current

 Operating lease liabilities

 $

 $

 Non-current

 Operating lease liabilities – non-current

 3,577

 —

 Total lease liabilities

 $
 4,381

 $

 (1)

 Operating
 lease right-of-use assets are recorded, net of accumulated amortization of $ 378 and $ 1,033, at December 31, 2023 and December 31,
 2022, respectively.

 The
Company uses its incremental borrowing rate at lease commencement to calculate the present value of lease payments when the rate implicit
in a lease is not known. The incremental borrowing rate is based on the Company's credit rating based on its market valuation metrics
and corporate yield curves observed for public companies with similar credit ratings.

 Operating
lease costs were $ 805 and $ 489 for the years ended December 31, 2023 and 2022, respectively.

 Maturities
of lease liabilities, including reconciliation to the lease liabilities, based on required contractual payments, are as follows:

 SCHEDULE OF FUTURE MINIMUM MATURITIES OF OPERATING LEASE LIABILITIES

 Operating

 Leases

 2024

 $

 1,174

 2025

 1,174

 2026

 1,174

 2027

 1,174

 2028

 Total lease payments

 5,358

 Less: future interest costs

 Present value of lease liabilities

 $

 4,381

 GAN

 NOTES

 (in

 Other
information related to leases as of and for the years end December 31, 2023 and 2022 was as follows:

 SCHEDULE OF FINANCE AND OPERATING RELATED TO LEASES

 2023

 2022

 Operating lease weighted-average remaining lease term (years)

 4.5

 0.8

 Operating lease weighted-average discount rate

 9.0
 %

 4.8
 %

 Cash paid for the amounts included in the measurement of operating lease liabilities

 $

 $

 Note
17 – COMMITMENTS AND CONTINGENCIES

 Legal
Proceedings

 The
Company may be subject to legal actions and claims arising from contracts or other matters from time to time in the ordinary course of
business. Management is not aware of any pending or threatened litigation, which are considered other than routine legal proceedings.
The Company believes the ultimate disposition or resolution of its routine legal proceedings will not have a material adverse effect
on its financial position, results of operations or liquidity.

 Content
Licensing Agreements

 In
the second quarter of 2021, the Company entered into Content Licensing Agreements (the "Agreements") with two third-party
gaming content providers ("Content Providers") specializing in developing and licensing interactive games. The Agreements
grant the Company exclusive rights to use and distribute the online gaming content in North America. Each of the Content Providers was
committed to developing a minimum number of games for the Company's exclusive use over the five-year term, subject to extensions,
of the respective Agreement. In exchange, the Company was required to pay fixed fees, totaling $ 48.5 million, of which $ 8.5 million were
due upon execution of the Agreements, and the remaining fixed fees were to be paid systematically over the initial five-year terms. Additional
payments could be required if the Company's total revenue generated from the licensed content exceed certain stipulated annual
and cumulative thresholds during the contract term. Under the terms of the Agreements, the Content Providers were required to remit the cash flows
from the online gaming content with its existing customers to the Company during the exclusivity period.

 On
January 27, 2022, the Company served a termination notice, for cause, to a Content Provider as certain conditions precedent associated
with the completion of contractual obligations had not been satisfied by the agreed upon period in 2021. In accordance with the agreement,
termination for cause results in a return of the initial payment of $ 3.5 million. In response to the Company's termination notice,
the Content Provider responded by alleging the Content Provider had met its contractual obligations, thereby obligating the Company to
make the next, scheduled $ 3.0 million payment. In March, the Content Provider served the Company a notice of default letter notifying
the Company of its alleged material breach of the agreement, and disputing the validity of the termination. On April 25, 2022, the Content
Provider attempted to serve formal notice of termination of the agreement, reaffirming the $ 3.0 million obligation. The Company continues
to assert that all contractual obligations to the Content Provider have been relieved as a result of the Company's initial termination
notice and will vigorously defend any claims made by the Content Provider. The Company further recognized an impairment loss related
to the initial payment of $ 3.5 million in the statement of operations for the years ended December 31, 2023.

 On
March 29, 2023, the Company amended and restated its Content Licensing Agreement with the other Content Provider which resulted in a
reduced contract term ending March 31, 2024 and a reduction in the fixed fees payable under the arrangement. At December 31, 2023 the
present value of the remaining fixed fee payments remaining under the agreement of $ 2.2 million is recorded in accrued content license
fees in the consolidated balance sheet.

 Chile
Operations

 Coolbet's
B2C casino and sports-betting platform is accessible in Chile. Since June 1, 2020, foreign digital service suppliers that provide services
to individuals in Chile have been required to register for value-added tax ("VAT") purposes. On September 20, 2021, the Company
submitted an inquiry to the Chilean Internal Revenue Service ("SII") for clarification on the basis to apply VAT. In December
2021, the SII issued a general resolution as a response to another iGaming platform operator stating the Tax Administration's position
that fees paid by users for entertainment services provided through online gaming and betting platforms are subject to VAT in Chile.
The SII clarified its interpretation that the VAT tax rate of 19 % shall be applied to "fees paid by the users", specifically
gross customer deposits on the iGaming platform. This was further reiterated by the SII in June 2022 through a public response to an
unnamed ruling request on the matter.

 On
May 13, 2022, the SII issued a resolution stating that unregistered foreign digital service providers will be subject to 19 % withholding
on payments through enforcement to issuers of credit cards, debit cards, and other forms of payment, effective August 1, 2022. The SII
issued this noncompliant list of unregistered foreign digital service providers to enact enforcement of this withholding on a quarterly
basis, with the most recent list issued on December 28, 2022. As of December 31, 2023, and through the date of filing, the Company has
not registered for the Chilean VAT but has not been listed on the SII's list for which this withholding should be applied, and
the Company has not received formal notification of any VAT liability due to the SII.

 On
March 14, 2023, the SII issued a resolution stating that, although the SII lacks the power to qualify an activity as legal or illegal
(which had been noted in previous SII resolutions), the SII is not empowered to register taxpayers for the simplified VAT regime who
carry out activities that have been declared illegal by other State authorities that do have the power to qualify an activity as legal
or illegal. It then notes that the SII has been informed by the Superintendency of Gambling Casinos that the offering of games of chance
is only expressly authorized in certain instances under Chilean law, and thus taxpayers without domicile or residence in Chile that offer
them are doing so illegally. As a result, the SII has excluded these taxpayers from the simplified VAT regime, effectively contradicting
past guidance that stated the digital VAT law must be applied to online gaming and betting platforms.

 GAN

 NOTES

 (in

 On
September 12, 2023, the Supreme Court of Chile issued a ruling requiring one telecommunication company to block 23 iGaming websites.
The ruling relates specifically to one local internet service provided ("ISP") and a state-owned land-based casino which
holds the rights to offer online sports betting (the "Local Provider"). The order to block the websites only applied to the
23 specific URL addresses mentioned in the legal action. The Local Provider's legal action was based on a "protection recourse"
filing, and assert that the Local Provider's constitutional right to maintain a legal monopoly over sports betting was infringed
upon. The Supreme Court of Chile's ruling only affected the named parties of the case, and did not establish legal precedent. In
response to the ruling, the Company modified the URL and resumed operations.

 On
December 12, 2023, the Chamber of Deputies Hall held a legislative discussion on a bill that regulates the development of online betting
platforms in Chile. The bill was approved by the Chamber and will proceed to the second constitutional process in the Senate.

 The
Company does not believe its activities in Chile are illegal based on external legal opinions obtained in previous years, and updated
external legal opinions supporting the Company's assertions. The Company had previously not registered for the Chilean VAT on digital
service providers as the Company believed the application of VAT on gross customer deposits, as previously clarified by the SII, prior
to the March 2023 resolution, did not represent a reasonable application of the law to the economic substance of the Company's
services; this previous application would have resulted in a material loss to the Company. The Company believes that Chilean tax laws
and regulations support that only the fees directly charged by the Company's platform, primarily poker fees, should be the taxable
base for the Chilean digital VAT and has obtained an external legal opinion supporting this position, the application of which would
not have a material impact to the Company's financial statements. However, as a result of the SII excluding the Company's
activities from the digital VAT registration, we no longer believe a liability is probable for the past activities as of December 31,
2022 as the Company is now effectively prevented from complying with the digital VAT law. However, there is uncertainty as to the regulated
environment, what amounts may be ultimately due on our previous activities and the ability to operate in this jurisdiction until the
SII resolves the position. Resolution of this matter may result in fines, penalties, additional expenses or require us to exit the market.
Revenues from Chile represented 28.1 % and 28.0 % of total consolidated revenue for the years ended December 31, 2023 and 2022, respectively.

 Synthetic
Equity

to the binding term sheet previously entered into with Red Rock Resorts, Inc., the Company entered into the Master Gaming Services Agreement
with Station Casinos LLC ("Stations") on March 30, 2023, to launch GameSTACK and GAN Sports RMiG and sportsbook solutions
at its properties through self-service kiosks as well as through on-premises and statewide mobile versions in Nevada, subject to applicable
licensure. As an additional incentive for Station to support the commercial success of the launch in Nevada, the Master Gaming Services
Agreement includes a Synthetic Equity Addendum which would require that the Company make a payment to Station in the event of a change
of control in the Company (the "Change of Control Payment"), subject to certain conditions outlined in the Synthetic Equity
Addendum. The Change of Control Payment is payable only in the event that a change of control occurs during the period as specified by
the Synthetic Equity Addendum and that the Company's market capitalization has increased during that time, calculated as proscribed
by the Synthetic Equity Addendum, which the amount of such payment ranging from 2.5 % to 5 % of such increase in market capitalization
over approximately $ 2.00 per share, depending on whether certain minimum revenue conditions are met over the next five years. The payment
represents an equity-linked financial instrument containing service, performance and market conditions and is measure and classified
in accordance with stock-based compensation guidance. The initial grant-date fair value represents an upfront payment to a customer for
the maximum tranche which will be attributed as contra revenue over the estimated initial contract term as revenue is earned under the
arrangement such that the recognition of the constraints is not probable to result in a material reversal of revenue.

 The
initial value of the grant date liability and corresponding contract asset was valued utilizing a Monte Carlo simulation, which
includes numerous scenarios including assumptions of probability weighted likelihood of different outcomes. As facts and
circumstances become known or knowable at each reporting period, the probability of certain scenarios will change which will increase
or decrease the value, and also the classification of the liability on the consolidated balance sheets. The valuation utilizing the Monte Carlo simulation on March 30, 2023 was
determined to be approximately $ 1.1 million at grant-date and recorded within other assets and other liabilities in the condensed
consolidated balance sheet.

 On
November 7, 2023, the Company entered into the Merger Agreement at a share price of $ 1.97.
The closing of the Merger is also predicated upon receipt of approval of the Merger and change in control of the Company by all
relevant gaming authorities. The Company anticipates that securing such regulatory approvals will take some time, and that
the closing of the Merger may not occur until late 2024 or early 2025. Refer to Note 1. Based on the Company's
anticipated timing of the change in control, the revenue conditions in the Synthetic Equity Addendum would not be met, the share
price would be less than the $ 2.00
per share threshold, and no value would be assessed to the liability. As such, a 75% probability was applied to the sale scenario of $0 value and 25% to the year-end
Monte Carlo value which assumes a sale in the future with potential revenue thresholds being met. As of December 31, 2023,
the fair value was determined to be approximately $ 0.3 million.
The year-end fair value is not sensitive to significant changes in inputs. The change in value was charged as a reduction to general
and administrative expense. As of December 31, 2023, the underlying revenue arrangement has commenced, and the asset is probable of
recovery.

 Note
18 – SUBSEQUENT EVENTS

 WynnBet Michigan

 In
February 2024, the Company was notified by WynnBet of its intent to assign its contract to a third party in one jurisdiction, which
pursuant to the commercial contract results in a payment of $ 1.75
million due to the Company. Upon regulatory approval of the assignment, the Company would then be owed an
additional $ 5.0
million to fulfill the assignment on behalf of WynnBet, of which $ 2.5
million would be due at the initiation of the migration plan, and the balance due upon the completion, or termination, of the
migration efforts.

 ITEM
9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 None.

 ITEM
9A. CONTROLS AND PROCEDURES

 Evaluation
of Disclosure Controls and Procedures

 Disclosure
controls and procedures are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed,
summarized and reported within the time periods specified in the SEC's rules and forms and that such information is accumulated
and communicated to management, including our chief executive officer and chief financial officer (together, the "Certifying Officers"),
as appropriate, to allow for timely decisions regarding required disclosure.

 In
designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how
well designed and operated, can provide only reasonable assurance, not absolute assurance, of achieving the desired control objectives,
and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Because
of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements will
not occur or that all control issues, if any, have been detected. These inherent limitations include the realities that judgments in
decision-making can be faulty and that breakdowns can occur because of simple error or mistake. The design of any system of controls
is based, in part, upon certain assumptions about the likelihood of future events and there can be no assurance that any design will
succeed in achieving its stated goals under all potential future conditions.

 As
required by SEC Rule 13a-15(b), we carried out an evaluation, under the supervision and with the participation of our management, including
the Certifying Officers, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of
the period covered by this report. Based on the foregoing, the Certifying Officers concluded that our disclosure controls and procedures
were not effective at the reasonable assurance level as of December 31, 2023. The Certifying Officers based their conclusion on the fact
that the Company has identified a material weakness in controls over financial reporting, detailed below. In light of this fact, our
management has performed additional analyses, reconciliations, and other procedures and have concluded that, notwithstanding the material
weakness in our internal control over financial reporting, the consolidated financial statements for the periods covered by and included
in this Form 10-K fairly present, in all material respects, our financial position, results of operation and cash flows for the periods
presented in conformity with GAAP.

 Material
Weakness in Internal Control Over Financial Reporting

 The
Company's management and audit committee of the board of directors also previously concluded that the fact that the Company did
not design appropriate controls to evaluate risks to the entity from improper segregation of duties, review user access rights, monitor
activities of finance users with elevated rights within the financial reporting system, and maintain manual controls at a level of precision
to mitigate potential misstatements that could be present through the lack of segregation of journal entry preparation and approval within
certain financial reporting systems constituted an additional material weakness.

 Remediation
Plans

 We continue to evaluate measures to remediate the identified material weaknesses. These measures include implementing appropriate controls to segregate journal entry preparation and approvals to
actively monitor finance users with elevated rights and segregate the information technology administration function from the finance team.

 We
intend to continue to take steps to remediate the material weakness described above and further enhance our accounting processes,
controls, and reviews. The Company plans to continue to assess its internal controls and procedures and intends to take further action
as necessary or appropriate to address any other matters it identifies or are brought to its attention. We will not be able to fully
remediate this material weakness until these steps have been completed and have been operating effectively for a sufficient period of
time.

 The
actions that we are taking are subject to ongoing senior management review, as well as audit committee oversight. We will not be able
to conclude whether the steps we are taking will fully remediate the material weakness in our internal control over financial reporting
until we have completed our remediation efforts and subsequent evaluation of their effectiveness. We may also conclude that additional
measures may be required to remediate the material weakness in our internal control over financial reporting, which may necessitate further
action.

 Management ' s
Report on Internal Control Over Financial Reporting

 Our
management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f)
under the Exchange Act) for the Company. Our management, under the supervision and with the participation of the Certifying Officers,
assessed the effectiveness of the design and operation of our internal controls over financial reporting as of December 31, 2023, based
on the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control – Integrated
Framework (2013). Based on this assessment and because of the material weakness identified above, management concluded that the Company's
internal control over financial reporting was not effective as of December 31, 2023.

 This
Annual Report on Form 10-K does not include an attestation report of our independent registered public accounting firm regarding internal
control over financial reporting. Management's report was not subject to attestation by our independent registered public accounting
firm pursuant to rules of the SEC that permit us to provide only management's report in this Annual Report on Form 10-K.

 Changes
in Internal Controls Over Financial Reporting

 Except
for the remediation measures discussed above, there were no changes in our internal control over financial reporting during the quarter
ended December 31, 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial
reporting.

 ITEM
9B. OTHER INFORMATION

 None.

 ITEM
9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.

 Not
applicable.

 PART
III

 ITEM
10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 The
information required by this item is set forth under the following captions in our proxy statement to be filed with respect to our 2024
Annual Meeting of Shareholders (the "proxy statement"), all of which is incorporated by reference: "Directors;"
"Executive Officers;" "Corporate Governance;" "Other Information - Delinquent Section 16(a) Reports;"
"The Proxy Process and the Annual Meeting - Director Nominations and Shareholder Proposals for Inclusion in GAN Limited's
2024 Proxy Materials," and "Proposals - Proposal No. 1 - Election of Directors."

 ITEM
11. EXECUTIVE COMPENSATION

 The
information required by this item is set forth under the following captions in our proxy statement, all of which is incorporated by
reference: "Executive Officers - Summary Compensation Table for Fiscal Years 2022 and 2021, Narrative Disclosure to Summary Compensation Table, Outstanding
Equity Awards at Fiscal and Year End 2023;" Directors - Director Compensation in 2023."

 ITEM
12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 The
information required by this item is set forth under the following captions in our proxy statement, all of which is incorporated by reference:
"Other Information - Equity Compensation Plan Information, Security Ownership of Certain Beneficial Owners and Management."

 ITEM
13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 The
information required by this item is set forth under the following captions in our proxy statement, all of which is incorporated by reference:
"Corporate Governance - Review and Approval of Related Party Transactions" and "Corporate Governance - Director Independence."

 ITEM
14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

 The
information required by this item is set forth under the following captions in our proxy statement, all of which is incorporated by reference:
"Proposals - Proposal No. 2 - Appointment of Independent Registered Public Accounting Firm."

 PART
IV

 ITEM
15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 (a)
1. Financial Statements

 The
following consolidated financial statements of GAN Limited are included in Item 8 of this report:

 Reports of Independent Registered Public Accounting Firm (Grant Thornton LLP: PCAOB ID No. 248)

 Consolidated Balance Sheets – As of December 31, 2023 and 2022

 Consolidated Statements of Operations – For the Years Ended December 31, 2023 and 2022

 Consolidated Statements of Comprehensive Loss – For the Years Ended December 31, 2023 and 2022

 Consolidated Statements of Changes
 in Shareholders' Equity (Deficit) – For the Years Ended December 31, 2023 and 2022

 Consolidated Statements of Cash Flows – For the Years Ended December 31, 2023 and 2022

 Notes to Consolidated Financial Statements

 2.
Financial Statement Schedules

 All
financial statement schedules are omitted as they are not required.

 3.
Exhibits

 The
exhibits required by Item 601 of Regulation S-K are included under Item 15(b) below.

 (b)
Exhibits

 Incorporation
 by Reference

 Exhibit

 Number

 Description
 of Document

 Filed

 Herewith

 Form

 Exhibit

 Number

 Date
 Filed

 2.1

 Scheme of Arrangement of GAN plc

 2.1

 April
 17, 2020

 2.2

 Share Exchange Agreement, dated November 15, 2020, among GAN Limited and Vincent Group p.l.c.

 6-K

 99.1

 November
 16, 2020

 2.3*

 Agreement and Plan of Merger dated November 7, 2023 among SEGA SAMMY CREATION INC., Inc., Arc Bermuda Limited and the Company.

 2.1

 November 8, 2023

 2.4

 Amendment to Agreement and Plan of Merger dated December 15, 2023 among SEGA SAMMY CREATION INC., Inc., Arc Bermuda Limited and the Company

 2.1

 December 15, 2023

 3.1

 Memorandum of Association of GAN Limited

 3.1

 April
 17, 2020

 3.2

 By-Laws of GAN Limited

 3.2

 April

 4.1

 Specimen certificate evidencing ordinary shares

 4.1

 April

 4.2

 Description of Securities

 4.3

 April
 25, 2022

 10.1+

 2020 Equity Incentive Plan of GAN Limited, as amended

 10.1

 December
 7, 2020

 10.1.1+

 2020 Equity Incentive Plan – Form of Restricted Stock Grant Agreement

 10.2.1

 April

 10.1.2+

 2020 Equity Incentive Plan – Form of Nonstatutory Stock Option Agreement

 10.2.2

 April

 10.1.3+

 2020 Equity Incentive Plan – Form of Incentive Stock Option Agreement

 10.2.3

 April

 10.1.4+

 2020 Equity Incentive Plan – Form of Restricted Stock Unit Agreement

 10.2.4

 April

 10.2+

 Form of Indemnification Agreement for Directors and Officers

 10.3

 April
 17, 2020

 10.3+

 Form of Director Services Agreement

 10.4

 April
 17, 2020

 10.4+

 GAN Limited Employee Stock Purchase Plan

 10.5

 December
 7, 2020

 10.5+

 Employment Agreement with Dermot S. Smurfit

 10.6

 March
 31, 2021

 10.6+

 Employment Agreement with Karen Flores

 10.7

 March
 31. 2021

 10.7+

 2020 Equity Incentive Plan U.K. Sub-Plan - Company Share Option Plan

 S-8

 4.3.5

 February
 12, 2021

 10.8.1+

 2020 Equity Incentive Plan U.K. Sub-Plan - Company Share Plan Option Agreement

 S-8

 4.3.6

 February
 12, 2021

 10.8.2+

 2020 Equity Incentive Plan U.K. Sub-Plan - Enterprise Management Incentive Plan Option Agreement

 S-8

 4.3.7

 February
 12, 2021

 10.8.3+

 2020 Equity Incentive Plan U.K. Sub-Plan - Enterprise Management Incentive Plan (EMI)

 S-8

 4.3.8

 February
 12, 2021

 10.9

 GAN Limited Employee Stock Purchase Plan

 DEF 14A

 Exhibit A

 June 10, 2021

 10.10+

 Executive Employment Agreement, between the Company and Sylvia Tiscare o, dated December 19, 2021

 10.2

 December
 22, 2021

 10.11+

 Employment Contract, between the Company and Jan Roos, dated as of January 13, 2022

 10.14

 April
 15, 2022

 10.12

 Credit Agreement, by and among the Company, BPC Lending I, LLC and Alter Domus (US) LLC as agent dated April 25, 2022

 10.11

 August
 15, 2022

 10.13+

 Separation and Release Agreement, between the Company and Karen Flores, dated December 28, 2022

 10.12

 April 14, 2023

 10.14+

 Amended and Restated Employment Agreement, between the Company and Brian Chang, dated December 30, 2022

 10.13

 April 14, 2023

 10.15

 First Amendment to Credit Agreement, date as of April 13, 2023, between the registrant and BPC Lending I, LLC

 10.1

 April 19, 2023

 10.16

 Second Amendment to Credit Agreement, dated as of April 13, 2023, between the registrant and Sega Sammy Holdings Inc

 10.2

 April
 19, 2023

 10.17

 Subscription Agreement, dated March 29, 2023, between the Company and Ainsworth Game Technology, Inc.

 S-1/A

 10.14

 May 30, 2023

 10.18+

 A&R Employment Agreement, dated March 9, 2023, between the Company and Giuseppe Gardali

 X

 10.19+

 Employment Agreement, dated October 5, 2023, between the Company and Seamus McGill

 X

 21.1

 List of Subsidiaries

 X

 23.1

 Consent of Grant Thornton LLP, Independent Registered Public Accounting Firm

 X

 24.1

 Powers of Attorney (included on signature page)

 X

 31.1

 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 X

 31.2

 Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 X

 32.1**

 Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 X

 32.2**

 Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 X

 97.1

 GAN Limited Clawback Policy

 X

 101.INS

 X

 101.SCH

 X

 101.CAL

 X

 101.DEF

 X

 101.LAB

 X

 101.PRE

 X

 Cover

 X

 +
Indicates management contract or compensatory plan or arrangement.

 * Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company hereby undertakes
to furnish copies of any of the omitted schedules and exhibits upon request by the SEC.

 **
Furnished herewith. This certification is being furnished solely to accompany this report pursuant to 18 U.S.C. 1350, and is not being
filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into
any filing of the registrant, whether made before or after the date hereof, regardless of any general incorporation language in such
filing.

 ITEM
16. FORM 10-K SUMMARY

 None.

 SIGNATURES

to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

 Dated:

 GAN

 (Registrant)

 By:

 /s/
 Seamus McGill

 Seamus
 McGill

 Chief
 Executive Officer

 (Principal
 Executive Officer)

 POWER
OF ATTORNEY

 KNOW
ALL PERSONS BY THESE PRESENTS, that each individual whose signature appears below constitutes and appoints each of Seamus McGill and
Brian Chang as his or her true and lawful attorney and agent, with full power of substitution and re-substitution, for him or her and
in his or her name, place and stead, in any and all capacities, to sign any and all amendments to the Registrant's Annual Report
on Form 10-K for the year ended December 31, 2023, and to file the same with all exhibits thereto, and all other documents in connection
therewith, with the Securities and Exchange Commission, granting unto said attorney and agent full power and authority to do and perform
each and every act and thing requisite and necessary to be done, as fully to all intents and purposes as he or she might or could do
in person, hereby ratifying and confirming all that said attorney and agent may lawfully do or cause to be done by virtue hereof.

to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.

 Signatures

 Title

 Date

 /s/
 Seamus McGill

 Chief
 Executive Officer ( Principal Executive Officer)

 Seamus
 McGill

 /s/
 BRIAN CHANG

 Interim
 Chief Financial Officer ( Principal Financial and Accounting Officer)

 Brian
 Chang

 /s/
 DAVID GOLDBERG

 Director

 David
 Goldberg

 /s/
 DAVID ROSS

 Director

 David
 Ross

 /s/
 SUSAN BRACEY

 Director

 Susan
 Bracey

 /s/
 ERIC GREEN

 Director

 Eric
 Green