I would like to throw out GAN as a possibility for the board.

GAN is a leading developer and supplier of online gaming content and enterprise-level gaming software systems as well as a provider of supporting operational services. It is the #1 online gaming platform in America, has about 30% of the LV casino market and is the backbone of PENN, FanDuel, PaddyPower,Cordish Gaming, etc and has agreements with states NJ, PA and IN.

The company went public in May at $8.50 and has very strong leadership by the Smurfit family (Smurfit-Stone Container)

The company just announced first quarter numbers and real money Internet gaming was up 108% to $4.7mm and service revenue was up 63% to $1.5mm. Management has guided full year 2020 revenue of between $37mm and $39mm. Analysts project revenues of $49.5mm in 2021 and $66.85mm in 2022. Importantly, the company is profitable.

The nice thing about GAN is their recurring revenue stream and the fact that they don’t take betting book risk. They just take a little vig on all action (4.2% take rate in the first quarter).

As betting continues to expand with the sports leagues, this stock should be a great beneficiary.


Their Revenue is down YoY. They have about 6 million in cash. They are really small and I would want to see them growing Revenue above 100% before I would even want to look at them.



Revenue is presumably down because there’s not been much of anything to bet on. The sports books are parched for “content”, and degenerates will bet on anything.

Regardless, GAN isn’t on the hook for the action; the various companies that partner with GAN – i.e. casinos, DraftKings, etc. – are responsible for customer acquisition. GAN just provides the technical infrastructure.

Because there are so few states that currently allow online gambling, there’s plenty of room for TAM expansion. Just as with marijuana legalization, more and more states will open up their gambling laws, which will boost GAN’s business.

GAN has been public on the London Stock Exchange since 2013; it’s only since May that the stock’s been NASDAQ-listed. I was fortunate enough to have GAN on my radar through a different service, and was able to enter a position back in February, at a converted USD price of roughly $5.30.

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Their revenue is actually up if you exclude one time “other revenue” of $4.7mm recognized in 2019.

Also, due to their IPO in May I believe they have over $60mm in cash

I started a trial position in GAN after their latest earnings call. Some highlights. I would suggest reading or listening to the call.…

we delivered 64% year-on-year revenue growth, excluding one-off revenue items last year, with the largest part of our revenue, principally derived from U.S. Internet Gambling, growing a phenomenal 108% year-on-year on the back of $142 million in gross operator revenue. We beat consensus adjusted EBITDA for the quarter and are now delivering on the promise of exclusive growth through the rest of the year.

our balance sheet carries nearly $62 million and is debt-free.

there has been significant continued execution in incremental new client acquisition with binding term sheets executed for the deployment of simulated gaming in; New Mexico, Colorado, Indiana and Mississippi.

For real money Internet gambling, we’ve reached an agreement in principle with a Tier-1 client that is looking to deploy our game stack technology in new addressable states such as Illinois, Tennessee, as well as Michigan and other states in which GAN offers considerable existing operating experience, such as New Jersey, Pennsylvania and Indiana.

Even sports betting, which we had assumed would fall by 80% in the months of April and May, has been substantially ahead of our expectations as we have experienced Super Bowl-esque spikes of activity

we’ve seen significant continued engagement by new casino operator groups seeking to move online now with simulated gaming, as well as continued legislative action in states we anticipate will legislate real money Internet sports betting, such as Ohio, where GAN has already forged a partnership with the leading retail casino operator, Jack Entertainment.

In planning for a post-COVID industry environment, we are investing in our people, expanding our bench and running fast to create the burstable engineering resources required to deploy game stack for existing and new clients.

So, we believe that the Tier 1 opportunity that we referred to is, at maturity you’re looking at $300 million to $400 million in gross operated revenue annually. This is a very large retail and also online gambling enterprise. It’s been a multi-month dialogue to reach the point we did yesterday with the execution of preliminary documents, and we will, of course, update the market in full with both identity and scope and expectations, as and when we execute definitive agreements. So, thank you for your

We set up and expanded in Las Vegas on the engineering front very successfully. We found a very thick vein of strong, technically, highly sophisticated individuals who are putting their thumbs at home and who’ve been very happy to come on board the GAN rocket ship. So, that’s been extremely successful and characterized as and we foresee more highly specialized engineers coming or in Las Vegas before the end of this quarter, but will largely be completed with that by the time we get into the end of Q3



Hi Dublegle,

Also, due to their IPO in May I believe they have over $60mm in cash

I am looking at their latest 6k here.…

They only have $24.4 million in total assets.

But your right they received a total of $62.4 million dollars through the IPO so where did the money go? If I wanted to own the shares I think I would be looking into that.


I believe that this report is as of March 31, 2020. The IPO occurred in May so additional funds would not show in this filing.

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I believe that this report is as of March 31, 2020. The IPO occurred in May so additional funds would not show in this filing.

That is a good point Dubleegle, Even though they mentioned the IPO on the earnings 6k report they did say it came later. The money from the IPO might not show up till next earnings. Thanks for the information.


They completed the IPO on May 7th 2020 so it would not show up. This is from their presentation.

$62.4 million raise concluded early May
• GAN will be included in Russell indices, with reconstitution taking effect after close of market on
June 26, 2020
• Company well capitalized to capture additional market share, with $62 million of cash

There is a ETF which is a Gaming fund which recently replaced Drafkings as the #1 holding with GAN. They put a newsletter which has a comment on the new client it reads:

Speaking on his company’s first analyst call, Smurfit said GAN had “reached an agreement in principle with a Tier-1 client that is looking to deploy our game stack technology in new addressable states such as Illinois, Tennessee, as well as Michigan and other states.” The deal remains subject to “significant conditions” but Smurfit said the company was “working hard to bring it across the line.”

Pressed for details, Smurfit said the Tier-1 opportunity is “at maturity [later defined as “within three years”] you’re looking at $300 million to $400 million in gross operated revenue annually.” Smurfit said the company was not one of its Simulated Gaming clients but GAN would be “displacing an existing provider that has been active in the US.” (Online speculation has pointed the finger at Churchill Downs Inc potentially being this mystery Tier-1 figure.)


Apparently live in game betting is expected to grow from 20% of betting to 80% which was reiterated by PENN CEO on Jim Cramers show. This will allow for people to watch and bet on the game in progress from their phone or device which helps Edge players (Limelight)

From their conference call an analyst question:

So, should we expect that when some of these markets come live and sports are back in check in the third and fourth quarter, some of your partners will be able to roll out some of these in-play features, or do you expect for that to be a 2021 opportunity? It certainly will, I think, increase everyone’s expectations for what the TAM could be?

Dermot’s answer:

if you look at the track record since launch of sports betting on our platform in September 2018, we’ve been relatively surprised how low in running betting or in-play betting has been as a percentage of all sports bets placed and processed.

So, it was running at substantially below 20%. If you look back at last year and we expect that to increase, particularly as the NFL season resumes. But its certainly some way away from the mature European markets for 70% to 80% of bets place are in running.
So I think many of the feature sets that are coming on stream for the first time. This season will help that. But we certainly don’t think it’s going to get up to 30% to 40% as we go through the back end of 2020 and into 2021.