GAN Limited (GAN)

GAN Limited (GAN)

GAN is a very small-cap Bert recommendation that has done poorly since he first recommended it in February at $29.25. GAN closed Friday at $15.97.

Business Description

GAN Ltd provides Software-as-a-Service solutions for online casino gaming and sports betting applications. The company segments include Real money iGaming operations and Simulated iGaming operations. The customers of the company include large regional operators and individual tribal casino operators.

In February, Texmex introduced GAN to this board with a thorough write-up here:…

In May, Texmex discussed why he exited GAN here:…

Recent revenue:

Q1 revenues total of $27.8 million versus $7.7 million, a 263% increase driven by the $14.3 million contribution from Coolbet to our Business-to-Consumer (“B2C”) segment and growth of $5.8 million from our Business-to-Business (“B2B”) segment. Full earnings release:…

Preannounced Q2 revenue is expected to be between $34 million and $35 million, increases full year guidance to range of $125 to $135 million. Full release:…

I have been dollar-cost averaging down because:

I believe online gambling and sports betting is coming to us all (eventually).

GAN seems like a classic “picks and shovels” play on the industry.

Revenue growth has been good the stock appears cheap on a forward P/S basis. Recent market cap $671M divided by $130M mid-range most recent guidance = 5.2x.

The Company will provide a more detailed update on the second quarter’s performance, as well as its 2021 fiscal year guidance, during its second quarter earnings call planned for August 16, 2021.

GAN is the only gambling related stock I own. I would appreciate any insights “the crowd” has to offer, particularly from anyone in gambling business.

(Yes, I understand that the Coolbet acquisition makes the numbers a bit difficult to follow.)


These are the reasons Texmex exited GAN. I posted the wrong link. My apologies to Texmex and the board.

I had brought GAN, a third-party SAAS company that serves casinos and sports betting industries. Recently I decided to sell out and put my funds into more high confidence positions that are also more widely followed. My reasons for selling GAN were primarily 2 reasons.

  1. Needed funds to buy companies that I feel have a longer runway of growth.
  2. While I always knew that GAN had limited scope for growth due to their low take rates (I projected peak revenue of $600 to $750M based on a 20% market share of their clients of $30B US sports betting and igaming market plus some international rev) news from MI online gaming market showed that even the 20% market share may be a stretch. Fanduel, Draftkings, and Mgmbets took the top 3 spots for sports betting and they are all non-GAN clients with a total of 77% market share; Penn a GAN client had 11% share. When it comes to igaming Fanduel (GAN client only for igaming) had 18%, while MGM and Draftkings had 33% and 20% market share respectively. Seems like the top online platforms want all in-house software platforms. This makes me wonder if GAN clients can even mop up a 20% market share. If GAN had amazing software they should be signing up casinos every few weeks. They lost PARC this year and Fanduel’s sports betting last year. They will do a little over $100M in rev this year thanks to the Coolbets acquisition but all of these made the outlook hazy despite the very low fwd P/S of just ~6!

Just thought I should let you know my decision.

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