GAN Announces 2018 Annual Financial Results Highlighted by a 16% Increase in Net Revenue

March 29, 2019

Company to Hold Conference Call on Friday, March 29, 2019 at 12:00 PM ET (4:00 PM UK)

LONDON & DUBLIN--(BUSINESS WIRE)-- GAN plc (“GAN” or the “Group”), an award-winning developer and supplier of enterprise-level B2B Internet gaming software, services and online gaming content in the United States, today announced results for the twelve months ended December 31, 2018 highlighted by higher Gross Income, Net Revenue, and a significantly strengthened balance sheet. The Company has also made an Investor Presentation with additional information on GAN’s outlook and strategic initiatives available on its website at

The full Chairman’s Report and Financial and Operational Review are available on GAN’s website at

2018 Financial Overview

  • Gross Income of £49.2m (2017: £41.1m) an increase of 20% on 2017
  • Net Revenue of £10.6m (2017: £9.1m) an increase of 16% on 2017
  • Clean EBITDA1 loss of £1.5m (2017: profit of £0.5m)
  • Loss before tax of £6.7m (2017: £4.2m) and loss per share of £0.08 (2017: £0.05)
  • Loss after tax of £6.0m (2017: £3.5m)
  • Cash and cash equivalents at the end of the year of £5.5m (2017: £2.7m)
  • Net Assets at the end of the year of £9.4m (2017: £7.6m)
  • Raised £7.5m in June 2018 through issue of equity and repaid £2.0m convertible loan to become debt-free (excluding lease liabilities)

2018 and Recent Strategic & Operating Developments

  • Launched Internet sports betting in New Jersey on September 1, 2018 for PaddyPower Betfair’s ‘FanDuel’
  • Continued delivery of PaddyPower Betfair’s fast-growing New Jersey Internet casino business supported by GAN’s Internet gambling platform, content & supporting services
  • Commercially licensed GAN’s US patent number 8,821,296 (“Patent”) for linking a patron’s rewards account to their Internet gambling account, for a five year term, to PaddyPower Betfair’s US subsidiary in 2019.
  • Launched Simulated Gaming for one new client, Choctaw Mississippi
  • Continued investment in expanding technical engineering resources principally in Sofia, Bulgaria
  • Continued investment in preparation for the launch of Internet sports betting and Internet casino gaming for the market leading casino in the State of Pennsylvania, Parx Casino
  • In January 2019, expanded relationship with PaddyPower Betfair for delivery of Internet sports betting and Internet casino into the State of Pennsylvania and the State of West Virginia
  • In February 2019, expanded relationship with Parx Casino for delivery of Internet sports betting and Internet casino into the State of New Jersey

Dermot Smurfit, CEO of GAN commented:

“2018 was a milestone period for GAN as we continued to adapt to positive changes in our online gaming market and as a result feel that the Company is well positioned for the coming year. The repeal of a 25 year-old Federal ban on sports betting in America in May 2018 cleared the path for GAN to launch Internet sports betting just four months later following a complex re-allocation of our internal engineering resources in order to integrate the first sports betting application into our enterprise software platform. Additional engineering resources were acquired principally in the second half of 2018 in order to deliver a complete Internet gambling solution to the market which reinforced GAN’s position as a market leader. As a direct consequence of our short term investment cycle undertaken and completed principally in H2 2018, GAN’s performance to date in 2019 is exceeding our expectations.

GAN has continued to position its business to capture growth in emerging online gambling markets in the US. 2018 saw significant progress with the launch of Internet sports betting together with the launch of just one single new client of Simulated Gaming as real money gambling initiatives drove our strategic decision making. A number of significant commercial and strategic developments occurred in 2018 and early 2019, the most significant of these was the launch of Internet sports betting but the second most significant was the licensure of GAN’s US Patent to PaddyPower Betfair’s US subsidiary. Management believes that the recognition of GAN’s US Patent significantly underpins GAN’s intangible asset value and could potentially lead to further client partnerships and US Patent licensing revenue opportunities.

GAN continued to prepare for Pennsylvania Internet gambling, now expected to commence in Summer 2019 following a multi-month regulatory delay. GAN’s client in Pennsylvania, Parx Casino, is the largest single casino property by market share in Pennsylvania. GAN will also be launching PaddyPower Betfair’s ‘FanDuel’ Internet sports betting and casino gaming in 2019. GAN is positioned for substantial growth in regulated real-money Internet gambling in the US following the commencement of Pennsylvania’s Internet gambling market.

New Jersey’s Internet gaming market out-performed our full year expectations with gross gaming revenues up 22% year on year to $299m with our second client for New Jersey real money Internet gaming, Ocean Resort Casino, launched in July 2018. We are increasingly confident in the long-term prospects for intra-State real-money gaming in the US and believe the opportunity of Internet sports betting may now serve as a catalyst for other US States to regulate both Internet sports betting as well as Internet gaming.

In Europe, our Italia regulated Internet gaming business grew substantially with the addition of our ninth client, Goldbet, a major retail sports betting and gaming operator. the ‘Overseas Internet Casino’,, launched user acquisition and retention marketing in September 2018 through the efforts of our newly-established multi-client digital marketing agency ‘GAN Digital’, established in Tel Aviv, Israel earlier in the year.

We remain confident in our prospects for 2019 and beyond. For 2019, we forecast material growth of Internet sports betting, Simulated Gaming™ and real money Internet gaming undertaken for US clients in New Jersey, Pennsylvania and Europe’s diverse regulated markets principally via Our US Patent licensing program which commenced in 2017 will also represent a new source of patent licensing revenues for GAN in 2019 and beyond.

We were very pleased to see West Virginia become the 5th US state to regulate Internet gambling on March 27, 2019 (in addition to already-regulated Internet sports betting). We believe GAN 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 gambling over time.”


1. Clean EBITDA is a non GAAP company specific measure and excludes interest, tax, depreciation, amortisation, share based payment expense and other items, which the directors consider reflects the underlying performance of the business, and excludes non recurring and significant non cash items.

Note regarding forward-looking statements

This announcement includes forward-looking statements, including statements concerning current expectations about future financial performance and economic and market conditions which GAN believes are reasonable. However, these statements are neither promises nor guarantees, but are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.

Conference Call Details

The company will host a conference call on Friday, March 29, 2019 at 12:00 PM ET / 4:00 PM UK time to discuss

these financial results.

Date/Time: Friday, March 29, 2019, at 12:00 PM ET/ 4:00 PM UK time

Participant Dial-In Numbers:

United States & Canada: 877-407-8629

United Kingdom: 0-800-756-3429

International: 201-493-6715

To access the call, please dial-in approximately five minutes before the start time.


The call will also be simultaneously webcast over the Internet via the following link such link will also be made available in the “Results and Presentation” section of GAN’s website (

GAN: Overview

GAN is a leading business-to-business (“B2B”) supplier of internet gambling software-as-a-service solutions (“SaaS”) to the US land-based casino industry. The Company has developed a proprietary internet gambling enterprise software system, GameSTACK™, which it licenses principally to land-based US casino operators as a turnkey technology solution for regulated real-money internet gambling, encompassing internet gaming, internet sports gaming and virtual Simulated Gaming. The Company has also launched digital user acquisition & retention marketing in support of the Internet Casino ( provided by GAN’s Digital Marketing Agency in Tel Aviv, Israel.

GAN is listed on the London Stock Exchange (LSE: GAN) and on Euronext Dublin (Euronext Growth: GAME).

Jameson Wang
VP Investor Relations &
+1 310 384 1132
[email protected]

Nominated Adviser, ESM Adviser & Joint Broker
John Frain / Barry Murphy
+353 1 679 6363

Joint Broker
Neil Patel / Cameron Duncan
+44 20 3100 2000

US Investors | The Equity Group
Adam Prior/Kyle King
+1 212 371 8660
[email protected]

UK & Ireland Investors | Walbrook PR
Paul Cornelius
+44 20 7933 8780
[email protected]

Source: GAN plc