Online casino software provider GAN plans to take its 2017 growth in the U.S. and use that for emerging U.S. online gaming markets in 2018.
With a revenue of £9.1 million in 2017 and a total gross income reported of £41.1 million, the company announced its 2017 annual results. To date, this is the company’s cleanest financials, showing profits for the first time since 2013.
Key to iGaming, GAN takes:
- about 15-30 percent increase in income and revenue,
- EBITDA profit of $500,000 (from a loss in 2016), and
- £2 million in raised funds to invest in the U.S.
US Simulated Gaming poised for growth
Dermon Smurfit, CEO of GAN, commented predominantly about the U.S. market the call. The growth of Simulated Gaming and internet profits in New Jersey inspire confidence for Pennsylvania, Michigan, and New York:
“We believe our Company has developed considerable momentum in the US market and that the Company is well-positioned to secure additional profitable opportunities from incremental US States which regulate real money Internet gaming over time.”
The company introduced Simulated Gaming, a social gambling system, to five new U.S. clients in 2017. Comparatively, 2016 brought three clients.
Even so, Smurfit said the U.S. legislation allowing some 12.8 million Pennsylvania residents to play online casino games in 2018 is a big win for the company.
GAN already has Simulated Gaming at Parx Casino, the largest casino in the state. Additionally, Smurfit said the casino approached GAN to bring real-money gaming from GAN’s GameSTACK system.
“GAN is positioned for substantial growth in regulated real-money Internet gaming in the US following the commencement of Pennsylvania’s Internet gaming market,” he said.
2017 speaks for itself
Smurfit attributes a lot of the 2017 success to on-property gaming for clients via Simulated Gaming. Along with GAN’s U.S. patented rewards points integration system, Smurfit said that this cost-effective marketing tool has multiple benefits.
- Increases on-property gaming by existing patrons
- Reactivates long-term lapsed patrons on-property
- Generates incremental income online for GAN, casino
Already, Simulated Gaming revenues come from the casino clients’ existing patrons and marketing services where professional service fees can increase. GAN is intent on delivering patron marketing via casino client support and thus scaling Simulated Gaming revenue.
The company also said its patent protections have resulted in commercial licensing discussions. GAN licensed its patent three times for real-money internet gaming in Pennsylvania and New Jersey and 13 times for Simulated Gaming nationwide.
US prospects pulling their weight
According to company reports, gross revenues in New Jersey were up 30 percent to $246 million. GAN now has two clients in the area, with one set to launch real-money internet gaming in 2018.
Now that the way may open for intra-state gaming, Smurfit said that Pennsylvania could be the catalyst for internet gaming regulation if the federal ban is lifted.
Goods news comes from New York and Michigan for GAN with Simulated Gaming. It maintains its position as the exclusive platform for three client properties in those areas. Should gaming legislation come with the bills in New York and Michigan, GAN sees itself as positioned to capitalize on those opportunities.