Online betting and gaming platform provider GAN has reported a 222% year-on-year increase in gross operator revenue for the four months to October 31, 2019, primarily due to higher than expected demand for internet gambling in both New Jersey and Pennsylvania.
During the four-month period, gross operator revenue amounted to $121.5m, up significantly from $37.7m last year, according to a trading update released by GAN.
GAN said that October was a particularly successful month, with gross operator revenue up 269% year-on-year from $11.0m to $40.6m.
Gross operator revenue comprises the sum of revenue from GAN’s Simulated Gaming business, as well as gross gaming revenue from real money regulated gaming and gross sports win from real money regulated sports betting.
GAN did not publish its results in full, but it did note that it was boosted during the period by the cross-selling of online sports bettors to internet casino gaming in New Jersey and Pennsylvania, with this being higher than expected.
GAN also noted that a faster-than-expected ramp-up of online sports wagering in Pennsylvania, compared to the uptake after the launch in New Jersey last year, meant results in the state were ahead of initial forecasts. Performance-related payments in reference to the launch of online sports betting for certain clients in Pennsylvania also helped drive revenue.
GAN noted the start of the 2019 National Football League season in September helped drive demand for online betting services in New Jersey and Pennsylvania.
In addition, the launch of legal online sports betting in October, towards the end of the period, helped contribute to higher revenue. GAN recently extended its partnership with FanDuel into Indiana, building on their sportsbooks in both New Jersey and Pennsylvania.
“We are pleased the ramp-up in real money internet gambling is accelerating ahead off our budgeted expectations in Pennsylvania and New Jersey, particularly since the start of the American football season in early September,” GAN chief executive Dermot Smurfit said.
“Our clients are among the leading operators of US internet gambling, leveraging GAN’s proven technology platform optimized in New Jersey over several years to convert our clients’ marketing dollars into more first time online gamblers.
“Given the rapid increase in the total addressable market for US internet gambling operators and their infrastructure providers such as GAN, we expect to see continued and rapid growth.”
GAN also said that such was the success of the four-month period and its growth earlier in the year that it expects to see year-over-year revenue growth in excess of 100% for the full year.