Online betting and gaming technology provider GAN has said that stronger-than-expected demand for its sports betting services in the US helped to drive gross operator revenue up 202.7% year-on-year during the third quarter.
For the three months to September 30, 2019, gross operator revenue amounted to $80.9m (£65.8m/€74.3m) according to an initial trading update released by GAN. This is significantly up on $26.7m in Q3 of last year and $54.8m in Q2 of this year.
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.
Although GAN did not publish full figures for each area of its business, it did note that the increase in gross operator revenue was driven by strong growth in real money regulated gambling in the US.
GAN said consumers in New Jersey are crossing over into online casino before, during and after sports events, which it said is proving particularly lucrative for the business.
The provider also noted a faster-than-anticipated ramp-up of online players in Pennsylvania since the state went live with legal sports betting in June this year. According to GAN, more Pennsylvanians gamble online than residents of New Jersey, which has been online since November 2013.
GAN said it was also boosted by the start of the NFL American football season, which began in September. In addition, demand for sports betting services was generally higher than expected across traditionally weaker summer months.
Away from revenue and GAN also saw an improvement in active player days, with this increasing 58.8% year-on-year to 5.4m for the quarter. Average revenue per day per user also jumped 90.7% to $14.97.
Reflecting on the results, chief executive Dermot Smurfit said: “Unprecedented year on year growth rate experienced in Q3 demonstrates our platform technology’s ability to scale to meet the needs of our diverse clients seeking to operate internet sports betting, at scale, in technically challenging US intra-state markets following the repeal of PASPA by the US Supreme Court in May of last year, the 25-year long-standing Federal bad on sports betting.
“The third quarter benefitted from stronger-than-expected demand for U.S sports betting during the seasonally weaker summer months as well as the first month of American Football NFL season which commenced on September 5 and continues through to Super Bowl LIII on February 2, 2020.”
Last month, GAN said also said growth within its US business helped to drive revenue up during the first half of the year. Group net revenue for the six months to June 30, 2019 amounted to £11.3m, compared to £4.6m in the same period last year.