Gambling software-as-a-solution (SaaS) company GAN (GAN:AIM) reported a strong trading update for the four months ended 31 October which showed revenues up 222% to $121.5m, giving the shares a 7.4% boost to 122.5p.
In the face of yesterday’s news that a cross-party political group is pushing to impose strict online stake limits, which hit the gambling shares hard, GAN’s strong trading and ‘highly positive’ outlook statement is a welcome antidote for investors in the sector.
Chief executive Dermot Smurfit commented, ‘our clients are among the leading operators of U.S. 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.’
STRONG US DEMAND
The strong start to the National Football League (NFL) season has resulted in higher than expected demand for internet gambling in both New Jersey and Pennsylvania.
GAN has experienced been better than budgeted cross-selling of internet sports while the ‘ramp-up’ in Pennsylvania following the go-live date in July is stronger than the comparable launch in New Jersey.
In October gross operator revenue was up 269% year-on-year to $40.6m.
