GAN Announces favorable Q2 update
GAN has provided an update on trading for the second calendar quarter period ending June 30, 2019.
In the second calendar quarter period ending June 30, 2019 trading was ahead of expectations with the seasonal decline in Internet gambling volumes typically experienced during the early months of Summer mitigated by various factors including:
High demand in Q2 for Internet sports betting on both basketball and baseball in New Jersey, despite the cessation in Q1 of the primary U.S. sports season relating to American Football; and
Higher than expected casino cross-selling from Internet sports bettors into internet casino gaming in New Jersey during the Q2 period.
The outlook for 2019 continues to remain highly positive for GAN. Internet gambling services to Parx Casino, the largest casino in Pennsylvania, commenced on June 24, 2019 with Internet casino gaming for Parx Casino expected to commence later this month. In the second half of the year, GAN expects to launch internet gambling services for a number of additional clients. In addition, GAN expects to enter into a number of new contracts for real money internet gambling.
The Company now expects to see high double-digit revenue growth for the full year 2019.
The outlook for the full calendar year 2019 is contingent on (a) the market size and clients’ market share and growth rate of Internet gambling in New Jersey and Pennsylvania; (b) the speed with which efficient marketing of the Overseas Internet Casino is conducted in European regulated markets by GAN; (c) the impact on Italian Internet casino market by the Italian ban on advertising gambling anticipated to be fully implemented in 2019.
Dermot Smurfit, CEO of GAN, commented, “Continued demand for Internet sports betting in New Jersey, and the associated benefit to Internet casino gaming, has outperformed our expectations through the second calendar quarter. In the second half of this year, we remain focused on landing new clients, and expanding upon existing contracts with clients, in addition to preparing ourselves for a rapidly expanding market due to an acceleration in sports betting-led online gambling regulation in the United States as well as enabling browser-based Internet gambling on Apple iOS compatible mobile devices as mitigation of Apple, Inc. policy changes towards HTML5-based real money gambling Apps.”