GAN beats expectations amid high US sports betting demand
GAN PLC expects to double-digit annual revenue growth after second quarter trading beat expectations as high demand for sports betting in New Jersey mitigated the seasonal decline in online gambling volumes typically experienced during the summer months.
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The internet gambling software developer said it benefited from high demand for Internet sports betting on both basketball and baseball in New Jersey, despite the cessation of the primary US sports season relating to American Football in the first quarter, along with higher than expected casino cross-selling from Internet sports bettors into internet casino gaming.
In the second half of the year, GAN expects to launch internet gambling services for a number of additional clients and enter into a number of new contracts for real money internet gambling.
Consequently, the AIM traded company said its outlook for 2019 remains highly positive, with high double-digit revenue growth expected for the full year.
However, this outlook is contingent on the strength of internet gambling in New Jersey and Pennsylvania, the speed with which efficient marketing of the overseas internet casino is conducted in European regulated markets and the impact on the Italian internet casino market by a ban on advertising gambling anticipated to be fully implemented in 2019.
Dermot Smurfit, chief executive of GAN, said: "In the second half of this year, we remain focused on landing new clients, and expanding upon existing contracts with clients, in addition to preparing ourselves for a rapidly expanding market due to an acceleration in sports betting-led online gambling regulation in the United States."
GAN PLC's shares were up 2.79% at 71.95p at 1008 BST.