GAN Trading Statement & Notice of Results
September 18, 2018
GAN performed in line with market expectations during the first half of 2018.
The outlook for the second half year period and full calendar year 2018
is contingent on (a) the market size, share and growth rate of Internet
sports gambling in
By way of outlook on 2019, the recent launch of Internet sports betting, the Company’s current sales pipeline and existing contracted clients are projected to propel GAN to record revenues, revenue growth, and EBITDA.
GAN is due to release its half year result for the period ended
PASPA / Regulatory Developments
With respect to online sports betting in the US, GAN welcomed the repeal
of the Professional and Amateur Sports Protection Act 1992 (“PASPA”) by
the
The reported success of the Internet sports betting market in the first
operating month of
New Jersey Internet Gambling
Internet sports betting’s growth since launch on
GAN’s second client in
Mobile apps are required to be downloaded by end users in order for
their physical location to be accurately determined in compliance with
New Jersey Internet gambling regulations. Mobile casino gaming
represents the substantial majority of Internet casino gaming revenues
in
Pennsylvania Internet Gambling
Pennsylvania’s real money Internet gambling market is now expected to commence in early 2019. This delay, due to a slower-than-expected issuance of regulations by the PGCB, impacts GAN’s ability to recognise revenues derived from professional services fees already generated by GAN year-to-date and similar incremental professional service fees expected to be generated in H2 2018 as preparations to launch our client Parx Casino’s Internet gambling operations continue.
Such fee-based revenues from the professional services rendered by GAN
to its clients are recognised following the client’s commercial launch
of Internet gambling. Accordingly, revenue from professional services
delivered to
This regulatory delay will also negatively impact GAN’s H2 2018 Net
Revenue from the revenue-sharing aspect of GAN’s commercial relationship
with
GAN has been a registered gaming services provider in
Italian Internet Gaming
GAN notes the recent legislative ban on advertising of gambling in
As previously announced2, the Company will launch its 9th
Italian client GOLDBET in Q4 2018 which operates more than 1,000
land-based betting shops in
Operational marketing of the
Simulated Gaming™
The acquisition of new US casinos as clients for GAN’s US-facing
Simulated Gaming business has been impacted by the increased allocation
of internal technical engineering resources towards real money Internet
gambling in H1 2018, which will continue to delay incremental client
acquisition until the previously announced expansion of the Company’s
software engineering team in
GAN’s client of Simulated Gaming, the
As on
Notice of Results
The Company will release its results for the half year period ended
FAQ’s about GAN’s Internet Gambling ‘Platform’ & US Patent
-
For investors and Industry analysts: The core of a “Platform” from
both a technical and regulatory standpoint is the Player Account
Management System i.e. where highly sensitive customer and player
activity data is stored and processed. Other elements of Platform can
include a sportsbook transaction engine, gaming content integrations,
payment services, marketing services, trading services and other
ancillary activities. However, the core functionality to describe B2B
systems and services as a 'Platform' is the Player Account Management
System. This is also the layer of B2B activity which tends to require
regulatory approval as a 'Platform' since it is the focal point of
data and player security. Therefore, without the Player Account
Management System, a service provider might be offering very valuable
B2B functionality but not in the strictest sense a 'Platform' (source:
Regulus Partners , an international gambling advisory group). - All US casinos operate an on-property rewards program (also called ‘loyalty programs’) where visitors to the land-based casino can enrol in a loyalty program, collect a rewards card and accumulate reward points from real money gambling on-property. Typically, US casinos have more than half of their active on-property patrons enrolled in these reward programs.
- GAN’s US-patented technology principally permits US casino operators’ carded patrons to link their reward card to their online gambling account in order to identify themselves as a patron of the land-based casino and a member of their retail rewards program.
-
The Patent was awarded to
GAN plc inSeptember 2014 by theUS Patent & Trademark Office (“USPTO”) with the Patent reissued under the same Patent number by the USPTO onMarch 17, 2017 following an unsuccessful ex parte challenge brought by an anonymous US Industry actor.
Notes:
1 “The Italian gambling advertising ban is unlikely to impact operators
equally with online only firms expected to be more significantly
impacted by the blanket ban on all gambling advertising in the country.
As can be seen from the market share in CY17 five of the seven largest
operators in the iGaming market have a substantial land-based presence
and will look to use that brand recognition along with cross- sell from
land-based to online to continue to grow their share post-ban.”
2 https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/GAN/13606639.html
3 https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/GAN/13622744.html
GAN | Overview
GAN is a leading B2B supplier of Internet gambling enterprise
software-as-a-service solutions to the US land-based casino Industry.
GAN is listed on the ESM Market of the
The Company has developed an 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 betting and/or virtual Simulated Gaming.
GAN has fourteen (14) casino operators as clients of Simulated Gaming
coast-to-coast across the US and Internationally; two (2) clients of
real money Regulated Gambling in
The Internet Gambling System, developed in
For more information please visit www.GAN.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20180918005724/en/
GAN
Chief Executive Officer
+44 (0)
20 7292 6262
[email protected]
or
US
Investors: The Equity Group
[email protected]
212.371.8660
or
[email protected]
+44
20 7933 8780
or
Davy (Nominated Adviser, ESM Adviser and
Joint Broker)
+353 1 679 6363
or
Liberum
(Joint Broker)
+44 (0) 20 3100
2000
Source:
