GAN, helmed by Dermot Smurfit Jr, suffered a staggering $200m (€182m) loss in 2022, and they’ve warned that further losses could reduce their liquidity, forcing them to seek additional capital. This was accompanied by a non-cash impairment of $166m.
The company acquired Coolbet, a firm based in Estonia, for €149m in early 2021. They had previously raised $105m for that purchase the preceding December.
In 2020, GAN was listed on the Nasdaq, raising $62m.
Their shares have since plummeted, now trading at $1.48 compared to the $5.50 of a year ago. Just after their listing, the stock had gone as high as $28.
Dermot Desmond, Dermot Snr (Dermot Jr’s father), Michael Smurfit (Dermot Jr’s uncle), and Andrew Black (Betfair founder) were all early investors in GAN.
GAN provides internet gambling software to land-based casinos in the US, and their 2022 revenue was $141.5m – up from $124.1m the previous year.
A downward revision to their 2023 budget and long-term plan, caused by a reduction in their B2B cash flows, a decision to not pursue original content, and a change in their B2C growth strategy, led to a 2023 impairment of $166m. Without that, they still lost $31.5m.
At the end of 2022, GAN had an accumulated deficit of $151m, and they warned that further losses could reduce investor confidence and drive down their share price. They also noted that they can no longer indefinitely reinvest foreign earnings.
