GAN’s Revenue Goes Beyond Expectations- Jaw-Dropping Surge of 222% Year-on-Year

Online betting and gaming platform provider GAN announced the statistics regarding the revenue for the four-month period to October 31, 2019. The extremely successful numbers revealed a considerable growth of 222% year-on-year increase in gross operator revenue for the said period.

As far as the company believes, the positive stats are primarily due to higher than expected demand for online gambling in both New Jersey and Pennsylvania. The provider also pointed out that it expects to see a year-over-year revenue increase over 100% for the full year.

GAN chief executive Dermot Smurfit commented:

“We are pleased the ramp-up in real money internet gambling is accelerating ahead of our budgeted expectations in Pennsylvania and New Jersey, particularly since the start of the American football season in early September.”

October as Main Contributor to Overall Success

According to a trading update released by GAN, gross operator revenue went up to $121.5m, up significantly from $37.7m last year, taking the four-month period into consideration.

The previous month was a particularly successful…

…with gross operator revenue surging 269% year-on-year from $11.0m to $40.6m. Gross operator revenue comprises the sum of revenue from GAN’s Simulated Gaming business, along with the gross gaming revenue from real money regulated gaming and gross sports win from real money regulated sports wagering.

Smurfit announced:

“Given the rapid increase in the total addressable market for US internet gambling operators and their infrastructure providers such as GAN, we expect to see continued and rapid growth.”

NJ and Pennsylvania Better Than Initially Forecasted

Even though the results were not published in full, the company noted that it was boosted during the period by the cross-selling of online sports bettors to internet casino gaming in New Jersey and Pennsylvania, with this being higher than predicted.

The provider also noted that a faster-than-expected ramp-up of online sports betting in Pennsylvania…

…brought more positive results than assumed. Performance-related payments related to the launch of online sports wagering for certain clients in Pennsylvania also boosted revenue.

The company also stressed out the start of the 2019 National Football League season in September as an equally significant contributor for the increased demand of web-based betting services in NJ and Pennsylvania

Besides, the launch of legal online sports betting in October, towards the end of the period, helped contribute to higher revenue. GAN recently extended its partnership with FanDuel into Indiana, building on their sportsbooks in both New Jersey and Pennsylvania.

Smurfit also declared:

“Our clients are among the leading operators of US internet gambling, leveraging GAN’s proven technology platform optimized in New Jersey over several years to convert our clients’ marketing dollars into more first-time online gamblers.”

Source:

“GAN sures expectations as revenue rockets 222%”, Rob Fletcher, igbnorthamerica.com, November 6, 2019.