GAN, a provider of online casinos and internet gaming, was able to recoup some of its losses in 2017 as revenue for the firm grows. The company is also emerging as a competitive player in the US market, which is already tight due to numerous regulations.
The company specifically provides internet gambling services to casinos that are land-based in the United States. Its headquarters is in the UK and reports its financial figures in pounds sterling. At the end of 2017, GAN reported a loss of over £4 million, which is an improvement over the £5.2 million loss from the previous year. The number amounts to a 5-pence loss on each share.
On the bright side, the gross income reported by GAN was up by around 30 percent. The £41.1 million gross income includes £9.1 million in net revenue based on a 17-percent increase.
Distribution costs encountered by GAN have risen over the previous year. The company spent £8 million on expenses related to distribution, mainly due to agencies in Europe taking a bigger cut of income generated by online casino games. In 2016, GAN spent an estimated £7.4 million on the same expenses. Distribution costs include the actual costs of operating hardware platforms, as well as direct marketing efforts.
GAN has released online gaming for five different casinos in the US. The company is also a provider of new remote gambling services in New Jersey and European markets. In the United States, Pennsylvania will start offering online gambling for real money in the latter part of 2018. The state will undoubtedly be an area of interest for GAN.
Online casinos continue to grow where they are legal in the United States. Overall revenue is up again in the state of New Jersey, but the income generated by online poker is down. A bigger share has gone to New Jersey online casinos, showing a trend among players searching for more variety. The World Series of Poker (WSOP) hopes to revamp online poker in New Jersey by offering more tournaments.
In general, gambling online is still a complicated issue in the United States. Though there is no federal law prohibiting the use of online casinos, the services are largely banned from state to state. If the first states offering online casinos prove to be safe and successful, there could be a federal overhaul in the works down the road. Sports betting online for real money is completely prohibited.