GAN predicts record revenue and growth in 2019
GAN is performing “in line with market expectations”, according to the company’s latest trading update that also predicts record revenues and growth in 2019.
The online gaming supplier covered several topics for the half-year ending 30 June, which affected its trading in both positive and negative ways.
Major events affecting trading included the repeal of Professional and Amateur Sports Protection Act, New Jersey and Pennsylvania’s online gambling launches, the Italian gambling ad ban, Overseas Internet Casino and simulated gambling.
Looking ahead to 2019, GAN claims internet sports betting launches, its current sales pipeline and existing contracted clients will “propel” the company to “record revenues, revenue growth, and EBITDA.”
Internet sports betting in the US made possible by the repeal of PASPA has seen GAN provide services to operator Paddy Power Betfair through FanDuel since 1 September, with its first 17 days of operation “exceeding initial expectations”.
Other potential future growth will be offered by GAN’s client Ocean Resort Casino, with the New Jersey Division of Gaming Enforcement approving their mobile casino apps on 4 September.
Pennsylvania will also offer GAN similar growth opportunities, with revenue from its client Parx Casino set to be recognised in H1 2019.
One potential problem facing GAN and its Italian clients is the country’s gambling advertising ban, which is set to come into effect on 1 January 2019.
However, following consultation from Eilers & Krejcik Gaming, GAN believes “internet gambling operators supported by significant retail operations are not expected to be materially impacted by the ban.”
Other positives for GAN moving forward include the commencing of operational marketing of the Overseas Internet Casino in Europe on 12 September, to develop internet gambling in the region for the Chickasaw Nation.
Simulated gaming will also offer revenue growth for GAN in the future, as the company’s client, The Mississippi Band of Choctaw Indians, anticipates the launch simulated gaming in Q4 2018.