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GAN benefits from US online shift to grow first half revenue
Gaming technology provider GAN saw the migration of US players to igaming almost double its second quarter revenue, helping the supplier to a 16.2% year-on-year increase in revenue for the first half of the year.
Over the three months to 30 June, almost all of the US land-based casinos were shuttered for a time, as a result of the novel coronavirus (Covid-19) pandemic. This saw players shift to online gaming, and resulted in GAN’s revenue for the quarter soaring 99.4% to $8.3m.
This was driven by an 110.4% year-on-year rise in real-money igaming revenue to $5.7m. This broke down to $4.2m in software as a service (SaaS) revenue (up 99.1%), coupled with $1.5m in service revenue, a 148.9% improvement on the prior year. This was credited to customer launches, namely the roll-out of online casino for FanDuel and Parx Casino in New Jersey and Pennsylvania.
GAN’s free-play solution, Simulated Gaming, also benefited from the shift online, with revenue up 79.1% to $2.6m, aided by the roll-out of an offering for the Snoqualmie Tribe in Washington State.
The US accounted for $7.0m, or 84.6%, of the quarterly total, with a further $1.2m coming from Italy, $33,000 from the UK and Channel Islands, and $11,000 from the reset of the world. GAN said that after the Chickasaw Nation ended its partnership to operate the WinStar Casino brand in Europe, it does not expect to generate meaningful revenue from the UK, unless it signs up another partner for the product.
“We were pleased to achieve revenues of $8.3m during the second quarter of 2020, a period during which nearly all of our land-based casino customers were forced to close their physical operations and when most major sporting events were cancelled as a result of the global pandemic,” GAN chief executive Dermot Smurfit commented.
“Our business has proven resilient to these outside forces in recent weeks, and we believe GAN can greatly contribute to both our customers’ success and the accelerated secular shift to igaming as casino operators continue to be impacted by the pandemic.”
Read the full story on iGB North America.