Bigger Demand for Sports Betting in the US Boosts GAN’s Q3 Revenue

Thanks to the growing demand for GAN’s sports wagering services in the US the online betting and gaming technology provider reported gross operator revenue growth of 202.7% year-on-year. As far as the initial trading update release from GAN shows, for the three-month period (July, August, September), gross operator revenue amounted to $80.9m (£65.8m/€74.3m)

Compared to the Q3 from the previous year ($26.7m) and the previous quarter from the current year ($54.8m), this represents a substantial growth.

Last month, the company pointed out that incline within its US business contributed to revenue boost during the first half of the year. Encoming the six-month period (January-June 2019), group net revenue amounted to £11.3m, compared to £4.6m in the same period last year.

NJ Lucrative for Business

Gross operator revenue represents a combination of the sum of revenue from GAN’s Simulated Gaming business, along with GGR from real money regulated gaming and gross sports win from real money regulated sports wagering.

Even though full figures haven’t been published yet, the company pointed out that notable growth was additionally strengthened with increased real money regulated gambling in the States.

What proved to be particularly beneficial in of revenue incline is the fact that clients in New Jersey are crossing over into online casino before, during and after sports events.

Noteworthy Contribution from Pennsylvania

Pennsylvania has also played an important role due to the legalization of sports betting in the state in June this year. As far as GAN noticed, even though NJ has been online since November 2013, residents of Pennsylvania consume web-based entertainment more.

Another contributing factor was the start of the NFL American football season in September. What’s even more, demands for sports betting services was generally higher than expected across summer months, which are traditionally weaker compared to the rest of the year.

Besides a substantial increase in revenue…

…the operator also saw an improvement in active player days. For the quarter, this grew 58.8% year-on-year to 5.4m. The average revenue per day per consumer also went up 90.7% to $14.97.

Scalability for Success

Analyzing the positive results, chief executive Dermot Smurfit said as follows:

“Unprecedented year on year growth rate experienced in Q3 demonstrates our platform technology’s ability to scale to meet the needs of our diverse clients seeking to operate internet sports betting, at scale, in technically challenging US intra-state markets following the repeal of PASPA by the US Supreme Court in May of last year, the 25-year long-standing Federal bad on sports betting.”

Smurfit also added that:

“The third quarter benefitted from stronger-than-expected demand for U.S sports betting during the seasonally weaker summer months as well as the first month of American Football NFL season which commenced on September 5 and continues through to Super Bowl LIII on February 2, 2020.”

Source:

“US sports betting pushes revenue up at GAN in Q3”, Rob Fletcher, igbnorthamerica.com, October 1, 2019.