US Gambling Operations
GAN is quick to add that these negative statistics aren’t indicative of the full picture, noting that the US-facing operations grew at a much higher rate than the free-play Simulated Gaming business.
GAN launched its second online casino client, Ocean Resort Casino, from New Jersey last July, and also helped with the launch of online sport betting with PPB’s FanDuel.
Furthermore, GAN is expecting to launch operations for online casinos and sport betting in Pennsylvania for FanDuel sports betting and Parx casino in summer 2019.
Last January, PPB signed a deal to licence GAN’s US patent for linking customer rewards accounts to their online betting accounts. GAN is still optimistic about convincing other operators to similarly licence its patent technologies, which would result in a healthy extra revenue stream moving forward.
What The Report Says
GAN’s European operations saw it launch the ‘Overseas Internet Casino’ website for Chickasaw Nation back in January 2018, though GAN’s report made little reference to this other than noting there had been a £200k loss to date.
The biggest announcement from Friday’s report was the start of a review into “various strategic alternatives”, such as a US stock market listing, to search for a strategic investor to take up a non-controlling stake within the organisation – described as a “formal sale process” that could actually bring someone new in to take control of the reins at GAN.
GAN were quick to stress that the company was not currently in discussions with any third parties regarding any potential sale. It did state, however, that advisory firm Union Gaming has been engaged to provide some counsel on the best way forward.
GAN investors were able to ride out the news without any excessive panic, with shares at close of play trading down just 4% to 49p.