GAN, the international B2B gambling supplier who currently offers games in Parx Casino, announced this past week that Pennsylvania’s expanded gambling regulation and future online gaming industry is part of the reason why the company had a promising first quarter in 2018.
What makes this past quarter so significant is that it’s the first time since 2013 that the company has posted gains before interest, taxes depreciation and amortization (EBITDA).
GAN provided the information in a summary of their quarterly earnings call. The summary included bullet-point highlights of positive developments as well as a lengthy quote from GAN CEO Dermot Smurfit.
GAN points to PA gambling expansion, Parx partnership
Much of what the company’s earnings report talked about was not related to Pennsylvania. It did make key mentions of what’s ahead for the Keystone State though.
Perhaps the most important mention came just before Smurfit’s comments:
“Preparations [are] underway for GAN to launch Parx Casino in Pennsylvania for Internet gaming with the Pennsylvanian Internet gaming market anticipated to commence in H2 2018.”
We know that applications for manufacturers, operators, and suppliers can be submitted to the Pennsylvania Gaming Control Board this month. Those submissions began on April 1. However, there has yet to be a firm launch date for online gambling in the state.
According to GAN’s earnings report, we can expect online gambling sometime between now and the end of the year.
The fact that these developments were mentioned in their earnings call indicates that they see PA as an important revenue stream, one that will make investors happy.
CEO sees PA online gambling as a massive opportunity
Smurfit made a point to note that the PA casino market has huge potential. After all, there are nearly 13 million people will be able to wager via the state’s online gambling launch. More from Smurfit:
“GAN has continued to position its business to capture growth in emerging online gaming markets in the US … with a number of significant commercial and strategic developments the most significant of these was the passage into law of legislation on October 30, 2017 permitting 12.8m Pennsylvanian residents to play real money Internet casino games starting in H2 2018.”
It’s clear that GAN is excited about the potential that online gambling has in Pennsylvania. They say that the combination of their existing relationship with Parx and the upcoming online gambling launch makes GAN “positioned for substantial growth in regulated real-money Internet gaming in the US following the commencement of Pennsylvania’s Internet gaming market.”
A reminder that Parx is the largest and most successful casino in the state.