GAN rewarded for US focus

GAN rewarded for US focus

Wednesday, October 7, 2015 Totally Gaming
Dermot Smurfit is confident of success in North America

GAN chief executive Dermot Smurfit has told TotallyGaming.com that the operator is at a “tipping point” in the US as it looks to build on what it considers an encouraging H1 2015.

The software developer, formerly known as GameAccount Network, saw gross income increase slightly from £13.2m (€17.9m/$20.2m) in H1 2014 to £13.4m in the six months to June 30, but was greatly encouraged by simulated gaming revenue growing from £200,000 in the first half of 2014 to £1.2m this year. 

Smurfit said that the land-based B2B social gaming offering has been a major success in the US, and that its New Jersey performance was a cause for optimism.

“In H1, New Jersey out-performed expectations and simulated gaming grew fast in terms of active player days, frequency of engagement while spend levels remained very high relative to generally-reported numbers from social casino operators,” he said.

“GAN is at the tipping point in America. Having spent nearly five years working with US casinos, to get to this point where we have several US casinos as clients - all of them major businesses. We're looking forward to an exciting 2016.”

While GAN announced net revenue in the first half of £2.9m, which was down 31 per cent year-on-year, and earnings falling from a loss of £400,000 to a negative of £1.5m, Smurfit was pleased by a number of operational developments, such as launches in California, Pennsylvania and Maryland.

GAN is establishing a presence across the US and Smurfit believes it is reaping the rewards of being a pioneer in New Jersey, having launched with Betfair and Trump Resorts in November 2013 – the month in which the US state first allowed online gaming.

“Now two years into New Jersey we can see how the market continues to grow gross gaming revenues as the product portfolio deployed by operators begins to mature and more residents become aware of legalised internet gaming," said Smurfit, who relocated to Las Vegas during H1.

“Lots of lessons have already been learned in terms of geolocation, payments and KYC which have proved intellectually stimulating for all operators and their technology platform providers! More growth is expected in 2016.”

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