Gan Share Discussion Threads

[cottoner] 16/10/2018 08:02

Interesting to note that on the back of Friday's US Sports betting figures , yeaterday the shares of Paddy Power went up 4.6% causing it's MCAP to increase by c£235m and GAN whose prospects are undoubtedly more linked to the success of the US Sports betting market and a key partner of PPB in New Jersey and with a MCAP of only c£43m , went down.

Hopefully the market will in time join the dots!

[cottoner] 16/10/2018 07:49

Paddy Power also highlighted in the Telegraph's market report.



Investors upped their bets on Paddy Power Betfair after early figures indicated that New Jersey’s newly-liberalised sports betting market is booming.

British bookies are hoping to hit the jackpot in a huge new market emerging across the Atlantic after New Jersey won a landmark Supreme Court case in May.

Its decision to overturn a ban on sports betting paves the way for other US states to open up their own markets.

New figures from New Jersey have revealed that $184m (£140m) was wagered on sports bets last month after a flurry of online betting and the start of the new American Football season. Revenue more than doubled from $9.2m to $24m in a month, an early glimpse of the potential of the nascent market.

However, Peel Hunt’s Ivor Jones warned investors that “there is a long way to go before market size and the market leaders will be established”.

Paddy Power has attempted to gain a foothold in America’s sports betting market by snapping up fantasy sports website FanDuel.

It led the sector higher amid signs of American punters piling into the new market. Paddy Power rallied 275p, or 4.6pc, to £62.90, lifting it away from a three-year low, while GVC and William Hill edged up 5.5p to 937.5p and 2.2p to 233.7p, respectively.

[rivaldo] 16/10/2018 06:59

From the Times' market report this morning (I hope I shouldn't have to point out that PPB are GAN's partner and ally in using GAN's platform):

"Paddy Power’s US bet pays off

The odds were back in favour for Paddy Power Betfair after sports betting activity in New Jersey, a key new market for the Irish bookmaker, nearly doubled in September.

Figures from New Jersey’s division of gaming enforcement, published after the market closed on Friday, showed sports betting activity rose from $95.6 million to $183.9 million between August and September after the launch of four new sports betting sites and the start of the NFL football season.

Fanduel Group, a subsidiary, was among the companies to launch online gaming in the state last month. New Jersey is regarded as a test case for the US sports betting industry, which was opened up in May after the Supreme Court enabled states to legalise it.

Paddy Power will potentially have market access to more than a third of the US population as a result of deals struck across the Atlantic in advance of the legalisation of gaming in more states, Peter Jackson, the chief executive, said in May."

[noujay] 15/10/2018 13:43

Thanks Rivaldo

[rivaldo] 15/10/2018 12:04

Berenberg are getting more optimistic on the US sports betting opportunity....



"Analysts at Berenberg upgraded bookmaker Paddy Power to 'hold' on Friday, noting that it believes recent scepticism surrounding the newly opened-up US sports betting market had been "premature".

....Berenberg's current analysis valued the market opportunity at as much as $25bn per year, of which it believes Paddy Power could take 15% "over the long-term". The broker also praised Paddy Power Betfair's joint-venture with FanDuel for affording the group an attractive opportunity to align itself with an established brand and also highlighted further benefits provided to it via land-based partner Boyd Gaming's distribution capabilities...

...Berenberg now thinks that the US opportunity is "more interesting" than it had initially thought....."

[molatovkid] 15/10/2018 10:38

Give it 2 or 3 years and all states will legalise gaming and casinos will need experienced partners & particularly those with the killer patent....

[rivaldo] 15/10/2018 08:54

Indeed Cottoner.

GAN's "peanuts" simulated gaming revenue share is forecast - after the more recent contract wins - to increase from £3.8m last year to £4.47m this year and then to £5.46m next year. That's a 43% increase in 2 years to approaching £500k per month.

[cottoner] 14/10/2018 12:24

Just thought it was worth pointing out that the 'peanuts' revenue GAN gets from Simulated Gaming is:

'Simulated GamingTM recurring revenues have increased by 20% from £1.8m in the prior year comparative period to £2.1m for the six months ended 30 June 2018.'

[noujay] 14/10/2018 09:21

I completely agree it's important to look at both sides and balance it out. It means people get the benefit of research into companies in order to find a real picture.For example regarding the patent. New ways of rewarding customers in order to avoid using and paying for GAN's patent is a highly unlikely threat.Firstly because most every casino in the US has on-property rewards schemes for their customers and these will become increasingly important within a competitive and growing marketplace and secondly because the rewards themselves are not what the patent relates to.The patent GAN hold is a link between the customer reward card and their online account. This is of course in the majority of casinos purely for simulated gaming at the moment, and will convert to real money as states regulate (that's GAN's peanuts and light beverage division) as well as, critically, providing identification for the customer.GLA of course.

[busterdog2] 13/10/2018 13:48

parx1 you have been a member for two weeks and have made four posts with negative undertones, all of them on this BB. Makes me wonder what your agenda could possibly be? And also what your previous handle may have been?

[noujay] 13/10/2018 13:30

This will be a slow burn but a large proportion of the revenues are recurring and there is a significant opportunity for both real money, simulated and sports book. Time-wise it may be too slow to excite you but medium term if they get this right and the opportunity develops as it currently is then this has as good a chance of being one of the big winners as any.

[cottoner] 13/10/2018 13:15

parx1

Simulated gaming pays peanuts.

Could you put 'peanuts' into a monetary value?

Much much in say six months?

[noujay] 13/10/2018 13:11

I think Fanduel deal will be pretty profitable but we will see in due course.Regarding the wolf from the door..you realise the company is recently debt free and capitalised for the expansion of real money gaming with their key partners?Patent is uncertain yes of course, although is has just successfully withstood a challenge (and been updated to include additional features in the process) which gives it plenty of legal strength. That, plus existing users like MGM/Borg etc, should give them plenty of confidence in the licensing enforcement programme.We shall see..!

[noujay] 13/10/2018 09:53

GAN will make money in Penn for on and offline. Although there will be more competition the market size will be drive upwards as well.That Fanduel are doing so well is impressive and very good for GAN. I would also remind that they have very close links to PPBF and it is not unlikely, IMO, that they will get carried into different areas with them.More simulated coming online with Choctaws soon and that will likely lead to an extension of that arrangement into real money for Mississippi in due course.What must be borne in mind as well is that once they integrate with sportsbook providers then their clients can, subject to regulations, then select from any of those platforms going forward within the GAN platform.Throw in the significant Winstar deal and some patent licensing it could all be very rosy.My only concern is the trade off from simulated to real money. Clearly the real money is the future action for GAN, but they have held off clients in order to focus on that as they only have five resource teams. My point is, why not steam forward and have both given that casinos with simulated via GAN are very likely to extend to real money with them as well in due course.I don't for a second think though that the management have not considered this in far more depth and with far more nous than I!

[ltinvestor] 13/10/2018 08:09

Of the $336m wagered in NJ so far $210m have been placed online....In my opinion online gaming can only go one way as other states will surely see the potential for significant much needed revenue...

[cottoner] 12/10/2018 21:36

As GAN have previously said:

'The outlook for the second half year period and full calendar year 2018 is contingent on (a) the market size, share and growth rate of Internet sports gambling in New Jersey; (b) the timing with which Pennsylvania's regulator the Pennsylvania Gaming Control Board ("PGCB") permits the launch of Internet real money gambling for residents of the State of Pennsylvania; and (c) the speed with which efficient marketing of the Overseas Internet Casino is conducted in European regulated markets by GAN.'

Hopefully they will give an update and give an indication at some point as to how the New Jersey figures carry thro to GAN and whether its above, below or in line with expectations.