Coolbet Owner Facing World Cup-related Uncertainty, but Claims Record Handle for October

GAN Ltd. is suspending its 2022 guidance for revenue and adjusted earnings. The uncertainty created by the World Cup and unfavorable foreign-exchange rates are making it tough to project future financial results. Coolbet owner GAN claims record handle for October.

GAN CEO Dermot Smurfit is not satisfied with the company's third-quarter results. He is concerned about the uncertain impact of the upcoming World Cup. GAN acquired Coolbet, which had a record handle for October. According to American Gaming Association research, 20.5 million adults in the U.S. are expected to bet a total of $1.8 billion on the World cup. The company has gaming licenses in 19 U.,S., states and in Ontario.

GAN generated revenue of $32.1 million for the three months ended September 30. Business-to-business revenue was up, but B2C revenue fell by $1.7 million. The company booked a net loss of $6.9 million, compared to $870,000 in 2021. Sports-wagering handle for third quarter was $160.2 million up 3%, while iGaming turnover was $396.3 million down 3%. GAN said in August that its full-year revenue and adjusted EBITDA for 2022 would be between $142.5 million and $152. 5 million with a potential boost from the World Cup.

Coolbet has more than 1.2 million registered customers around the world. 750,000 of them have deposited. 261,00 customers were placing wagers as of Sept. 30.