GAN probes effect of Coolbet’s exit from Ontario in Q2 report

GAN's B2C segment departed the province in April to focus on other markets

GAN has noted a minimal drop in its number of B2C active customers during the second quarter of FY2023, despite the withdrawal of Coolbet from the Ontario market in April

Coolbet entered the newly regulated Ontario market when it launched in April 2022 but less than 12 months later, GAN’s B2C segment announced it would halt offering its services in the Canadian province after Apr. 3.

However, GAN has reported that despite its ‘strategic decision’ to exit the Ontario market and focus on Europe and LATAM, alongside limited customer acquisition in Latin America, B2C active customers only decreased ‘modestly’ from the prior year period (Q2 2023: 257,000, Q2 2022: 260,000).

Meanwhile, GAN’s B2B gross operator revenue totaled USD$436m ($584.5m) in Q2 2023, a 54% increase on the USD$283m ($379.4m) it achieved in Q2 2022.

According to the firm, the increase was driven primarily by organic growth in Pennsylvania, Michigan, New Jersey and Connecticut, while Ontario supplemented the growth through achievement of greater market share.

Other top line figures include a USD$1.2m ($1.6m) decrease in total revenue YoY to USD$33.8m ($45.3m), while operating expenses dropped from USD$62.3m ($83.5m) last year to USD$32.8m ($43.9m) this year.

Dermot Smurfit, CEO of GAN, explained: “Our second quarter saw solid execution and progression of our business plan. We continued to see strength in international markets for B2C, expanded our roll-out of GAN Sports, and made significant progress on the new GameSTACK 2.0 version of our technology platform.

“With GAN Sports now live in nine US states and the encouraging momentum we are seeing in our international markets, we would expect our top-line performance to improve over the coming quarters and into 2024.

“As an update on our strategic initiatives, we have received indications of interest from prospective bidders interested in acquiring all or part of our business. A special committee of our Board of Directors, composed of non-executive directors, is evaluating those alternatives.

“The indications of interest are non-binding; no definitive agreements for a strategic transaction have been reached at this time. There is no assurance that a transaction will take place, and no timetable for completion of any transaction.”

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