Online casino technology provider GAN reported falling revenue in the second quarter despite a rise in players using its social gaming products.
On Wednesday, GAN (formerly known as GameAccount Network) issued key performance indicators for its operations over the three months ending June 30, which showed active player days for its Simulated Gaming free-play social casino product rising 16.7% from Q1’s figure, marking the fourth straight quarter in which this statistic had headed in a northerly direction.
However, average revenue per daily active user (ARPDAU) declined 9.2% from Q1 to $6.98, which the company blamed on “strong growth in higher-margin Simulated Gaming which proved modestly dilutive to ARPDAU across the enterprise.”
GAN CEO Dermot Smurfit emphasized that his company, “like all internet gaming companies with players principally located in the Northern Hemisphere, experiences Summer-related seasonality” in Q2 and Q3.
Smurfit also claimed, without offering specifics, that “overall ‘GAN-enabled revenue’ in which GAN participates” was up 6% from Q1. GAN firmly believes that its Simulated Gaming product drives visitation to the brick-and-mortar casinos with which GAN has partnered.
GAN has inked 13 US commercial and tribal brick-and-mortar casino clients for its Simulated Gaming product since the product’s launch in January 2014 but GAN has long complained about the slow pace of US states joining Nevada, New Jersey and Delaware in authorizing real-money online gambling within their borders.
GAN has a real-money online gambling license in New Jersey, where it provides services to UK operator Betfair’s online casino. It also provides licensed gaming content to real-money European operators, primarily in Italy’s regulated market.
Last September, GA announced a deal to provide an unspecified US casino client with real-money online gambling technology targeting Europe and the rest of the world. The site, which GAN planned to merge with its existing MoneyGaming.com B2C operation, was tipped to launch in the first half of 2017, but if it has gone live, GAN isn’t saying.