Gambling.com Group expects more sports betting legislative developments in US
The group is already active in a number of states across the US, with plans to also launch in Ohio when its market opens on 1 January and Maryland once regulated sports betting is approved in the state. It also went live in Kansas in September.
However, Gambling.com Group chief executive Charles Gillespie said the business is hopeful of further expansion in 2023 and beyond, forecasting both sports betting and igaming legislative developments elsewhere in the US and in other, international markets.
“The 2023 legislative season kicks off in January and we believe that sports betting legislation could be considered in North Carolina, Georgia and Texas,” Gillespie said. “We also believe that igaming could come up for a vote in the legislatures of New York, Indiana, Illinois and Ireland.
“Our long-term outlook on broad-based expansion of regulated online gambling in North America remains unchanged. We continue to expect states to regulate online sports betting, where retail sports betting exists and states that have online sports betting to move toward regulated igaming.”
Gillespie added that the recent acquisition of Casinos.com would support the group with its igaming growth strategy in the years to come.
“To continue to best position ourselves for the future of igaming around the world, we recently completed the acquisition of a superstar marquee domain, which, in our view, is the single most desirable and valuable domain name for companies in our line of business, Casinos.com,” Gillespie said.
“The addition of Casinos.com to our already best-in-class domain portfolio enables us to build another powerhouse global brand alongside Gambling.com using our existing teams, technology and know-how.”
Rocketing revenue
Gillespie’s comments came in an earnings call following Gambling.com Group publishing its results for the third quarter, during which it posted record quarterly revenue of $19.6m (£16.4m/€18.9m), up 94.1% on last year.
The quarterly high was helped by a record performance in the UK and Irish market, while North American revenue also rocketed by 299.0% year-on-year to $9.1m. The group also noted a 152.0% jump in the number of new depositing customers (NDCs) to 68,000.
Turning to costs and spending was higher across the board, with the group reporting a rise in expenses for sales and marketing expenses, technology, and general and administrative, while movements in credit losses allowance and write-offs, as well as fair value movement on contingent consideration were also higher year-on-year.
The group also reported $2.4m in net financial income, which, coupled with the rise in revenue, meant it was able to post a pre-tax profit of $2.6m, only slightly down from $2.7m last year.
Gambling.com Group paid $340,000 in tax, leaving a net profit of $2.3m, which was down 51.1% on Q3 of 2021 as a result of the business having received $2.0m in tax credit last year.
The group also reported a $6.0m negative impact from exchange differences on translating foreign currencies. As such, comprehensive net loss for the quarter was $3.7m, compared to a $2.9m net profit 2021.
However, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was 22.5% higher year-on-year at $6.0m, while free cash flow amounted to $4.9m.
“Our consistently strong adjusted EBITDA and free cash flow, even as we continue to invest to drive further growth, is a key differentiator for Gambling.com Group,” Gillespie said.
“We will continue to benefit from our proprietary technology, which offers us competitive advantages, a significant pathway for near- and long-term growth in North America, a track record of delivering consistent growth in our established markets and an operating model that drives profitability.
“As such, we are confident in our ability to grow over the balance of this year and extend our successes in 2023 and beyond.”