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GAN Limited (GAN)

Participants
Robert Shore VP of IR and Capital Markets
Dermot Smurfit President and CEO
Karen Flores EVP and CFO
Chad Beynon Macquarie
David Bain B. Riley Securities FBR
Cassandra Lee Jefferies
Ryan Sigdahl Craig-Hallum
Greg Gibas Northland Capital Markets
Call transcript
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Operator

Greetings, and welcome to GAN's Q4 Fiscal Year Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Investor Capital of VP Shore, Relations Markets. and Robert go ahead, sir. Please

Robert Shore

were the our everyone. earnings Hector. release and us, which be file quarter after most results, results that note slides CFO. not Please XXXX substitute as in the results audited the CEO; current Accordingly, reflect and is And and at connection me the and you, with With certain company's prepared GAN's accompany full on results. was XX-K, to prior closed information be Karen the we that preliminary our posted available financials good when today note our to in PowerPoint have earnings as and President Thank a gan.com. audit Please the XXXX for may afternoon, provided fourth that adjustments is website viewed will remarks. should and year and our issued release. today preliminary market unaudited quarter are subject are Smurfit, adjusted we preparation of indicated Flores, Dermot year full our

Smurfit. access safe and statements come from you that factors, presentation our in the are Federal to forward-looking appendix and may may time or contained case today our forward-looking to may may release adjusted second Dermot? to we for I'll reference to statement in call Dermot our like website. over of harbor audience true. substitute measures. these and the which legal turn are our make direct are in disclaimers financial under also call talks We disclosures to on of provided Along like IR financial risk that comparable forward-looking section not not website these GAAP the lines, Securities remind to posted non-GAAP slides including measures I'd qualified and each statements supplement laws, EBITDA, I'd our our Relations presentation. You by Reconciliation earnings may Investor or the on SEC With have filings that those certain to time, of of which we slide non-GAAP our the the CEO, our on measures intended that, portion the

Dermot Smurfit

Thank our afternoon, me the and performance segment slide fourth presentation everyone. good encompassing you, enterprise financial Bobby. the XXXX international quarter results And segment. gaming fourth join discuss full on BXB internet Please segment both to and year of software our and our operating

positive remain we the as Arkansas filed of gambling We final discuss of Oaklawn intellectual our through for of platform in the deliver EBITDA quarter framework, EBITDA iBridge now Entain and and patent will omnichannel call also and for items will newest in way will Park in the our well RGS this first call, litigation discuss our patented will client, each property, to profitable XXXX, By calendar America. which claim year. first as new Lottomatica, Super enables clients, as pursue infringers also the adjusted outlook agenda quarter this balance which of major progress we we

against as $XX profitable, back international of our subsequent plan. XXXX. XXXX, operator million strong to sports $XXX business to overall was which BXC This revenue as XXX% year Coolbet, by well and international our integration successful versus million Looking added full acquisition strategic the led over betting BXC a increased driven execution in high-growth

by with U.S. quarter. year-end, launching Canada, revenue $XXX jurisdictions increasing million gross million delivered Ontario, our operator operational in in to $XXX a an we including XX to clients North X of division states, BXB versus XXXX net next of expectation are now domestic operational as Our in BXB America

to distribution chain, including deal progress greater with more share milestone the online existing content the course, Vegas our and with and the a BXB Resorts Rock Red profitable betting locals acquiring game BXB acquire platform omnichannel business technology of to an provide Silverback, with on deal share We Las of and our retail studio also Ainsworth reaching leading and market. to their a value power leading made of a exclusive great online in sports strategy reaching

Turning see the metrics a next on fiscal KPIs for review key slide, XXXX. of to you'll our and

prior Our or in prior our the our quarter, BXC performance it low per mount acquisition remains cost business from path, setting extremely records wagered quarter, at as XXX% just remains on increased a Last per handle from numerous strong growth year. XX% XXXX grew the $XX customer. while

a betting revenue strong, and sports million. sports margin our a by did adjusted on I'll tracking several by solid we public of in very ground. basis, line is see with the major the on who presence historic underlying hold While reported specifically, remain anomaly operators and that This levels quarterly approximately low hold in soccer fundamentals year-to-date, was business EBITDA roughly at the European take KPIs a volatile below more underlying Europe X% abnormal experienced note BXC to opportunity our hold were impacted norms. hold normalized with $X

a recurring business BXB revenues by XX% increased side, of In in the the from portion we saw annual quarter. fourth the XX% revenue. On prior increase the quarter, the

a and on performance While EBITDA. EBITDA This our profitability, strategic one the GAN number hindering improving our growth without Sports. initiatives course, underlying iGaming of and hold margins is volatility our loss adjusted focus strong, caused in consolidated Super quarterly RGS business us the in year, report was to adjusted

a that our iGaming. spend. investment domestically coming years Gaming than recognized small for content technology Italian the enable Silverback are we fourth us announce new studio, slot poised acquired This to currently regulated across the enter as and are quarter, of game a Siliverback Speaking should markets, is slot excited market, of games scale of distributed European a approximately I'm today, RGS, investment powering XXX globally with Super in $XXX,XXX. operators two proprietary more BXC on clients targeted to the the the In that's U.S. provider MGM. gaming total consideration to marquee to giant Bet Lottomatica iGaming Nanette, known

Finally, we in Oaklawn secured this platform deal a second with Arkansas, the year. of which Park half will in recently launch

developments some to patent the property. non-platform for having we patron a I recent to is took it that Before have technology obviously monetized. clients. We to multiple discussing until land-based occasions to on ensure leveraging intellectual our which property XXXX, operators related XXXX success databases our both legal recently seen tremendous online, and our outlook, protected mention protected intellectual our want We've and action considered monetized defend patented remains

long-standing we're infringers continue Additional to not protecting against the necessary participants. But as patented legal be of take we, as patented is that view that much we of monetizing We taken very prefer something this legal actions both action capabilities it, This and intellectual unique course, for and certainly property. not property will for calls our protect these intellectual to to afraid enforceable. as are industry believe do technical situation our assets action. investments as

the full to jumping for outlook our of year Now XXXX.

between organic We $XXX growth nearly revenue guidance million. of and instituting are $XXX XX% midpoint, this of million implies year-over-year. At the

also adjusted time range of EBITDA introducing the and first million. year to full We guidance $XX are $XX for are million forecasting a

on our profitability operating XXXX As leverage. is in and focus I mentioned earlier, sustainable

like business. be adjusted on to guidance our having the current every that is EBITDA current We also highly expect of view I'd thoughts provide achievable. as U.S. to a to of short-term our quarter BXB state on impact minutes the take and a couple market positive

betting longer-term of U.S., to BXB near-term in here mid- continue there remain well the we and slower expected; evolve thirdly, XXXX. our operators bullish has documented headwinds has scaling than we are legislation. While legislation outlook the BXC fragmentation back previously than market to been in their sports to marketing to firstly, include spend; on certain been slower some the secondarily, enacted market gaming These be

BXB this we're of term, to quarter. and Canada, operator with BXC XXXX growth on focused in in the delivery on we alongside Casino seeing major and stronger going we're result fourth as interim, our growth In early lean launch poised see items, a launching some BXB into Michigan's in growth forecasted these with near and are controlled of see, course, pressure Sorin in planned beyond. As flawless, the Ontario, of year second client to the strong we'll segment new Eagle launches, our client U.S. timely profitable for

control Our strategic can is near-term headwinds. actions we mitigate to mantra industry to implemented have and we as a several leadership what control, team

revenue clients spend our have a on of structured been contracts what a we percentage is marketing, is gaming there direct and which U.S. so net in something Our our revenues with control. correlation can't

on now aggressively. minimum profitability The decide deals first have is whether or to for we one, new our ensure day for implemented action client revised that market GAN revenue to contract doesn't terms guarantees with decides

which of much base know, iGaming the on many in the along a and as Sports Secondly, a call enables we've GAN share been greater content, chain. much value wider client investing with already

BXB in BXC profitable help short and of market. fast-growing Thirdly, some challenges we have U.S. current term a to offset business the the

clear development we international $XXX to to locations, this growth vendors, existing want taking $XXX pipeline such contracted accelerate efforts lower off measures third-party outlook long-term and million long-term XX% revenue highly I in our $XXX of of said, million target revenue margins I million year line next headcount our executing profitability, leveling client as That reliance very cost and will are we to that XXXX. remain robust. confident and reducing on between Finally, be with several be our on focus remains XXXX on our in our top increasingly as moving year. over

priorities X, for to XXXX. on let Moving talk fiscal strategic about our Slide me

Our focus squarely achieving this number profitable one year on growth. is

We to our profitability. have review implemented structure completed several and accelerate measures a current of cost thorough

cash expand reach BXC and we Our see opportunities generative geographic its business is growing, and to beyond markets. existing already

CapEx entry as we online-only large evaluate given BXC commitment business the not new On CapEx require a model potentially entering lite. the is as us markets international of an profitability, are This offering. theme where benefits will we

than of is commitments we're to revenue U.S. costs operating implementing their deploying marketing regardless capital. highly our minimum to near the in Finally, BXB are And term, covered guarantees ensure more contract in our scalable. clients'

our to on strategy. investment Moving

GAN will high and Sports continue to RGS. invest smartly in ROI Super including opportunities, We

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major work up more iGaming chain two in while sign client will to initiatives today. to clients the our iGaming diversify base RGS of value the We sports Both capturing our of announced to allow and addition the continue ecosystem. to we Super to us

strong drive our BXB, will American revenue well such In strong business. as in growth and BXC date. markets we're current exciting with quarter by completed organic In the improve is those launch opportunities Ontario, complemented on to live implementation ahead and growth be and implementing to addition initiatives see European the expected entire measures, go Canada. we will in technical the also across new next Ontario scalability Latin to

in Park launched of online quarter retail to are sports GAN sports deal have Oaklawn their and only there Sports, second Oaklawn also provide revenue. Mississippi. a their In We've we licenses will and expect addition, secured in share so betting state, fair currently in be Arkansas platform, in also three with to the the

Slide to Moving on X.

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operators. comparison acquisition third is profile, our marketing Thus, per that is the given right is a a sports-focused we're just driven actually operational technology. sports admittedly, as experience that profitable, branding is spend just in acquisition which local often player BXC percentage While exactly of BXC which uniquely through our average accomplished their of cost business, geographies. bookmaker in-house by a marketing, now, Further, not as last XXXX. is growing well and apples-to-apples Coolbet, cost-efficient GGR accumulation, why U.S. $XX XX%, is emphasizes Coolbet's as This cold profitable teams. with the with less one was sponsorships the than of unique customer

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Karen Flores

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BXC Over our an segment This XXXX, results XXXX in outcomes. QX increase of X.X% a experienced observed the both related decrease hold since related and event the in of third house favorable a experienced of to BXC in the to a segment course standardized QX norms. not Europe presence details related numerous with first and rates the the for historical operators hold early to significant also to X.X% the to anomaly our X.X% Further player-friendly low quarter. by the for today's found appendix normalized presentation. who public with reported below be was The in can challenge of revenue a similar impact in for hold historic presented quarters,

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This three As a stay-at-home were by simulated for COVID difficult benefited primary factors. our the from or XX% driven XXXX, $XX QX, versus such, in in year Operating and increase be or offerings. million will gaming expenses million as $X.X gaming QX. was this a up social reminder, simulated dynamic comp

headcount, we short hiring year the XXX in comp the and quarter costs by partially employees. X% XXXX rate related of in final increase plan. term exited increases were offset represented First, at incentive The in our full-time to personnel adjustments the QX a

in related Expo we most participation increased on And notably primarily momentum growing programs Gaming marketing continue our organically anticipation international established of Global BXC for our to build the to the Ontario in business. in regulated marketing October invest and as to have we spend launch our Second, upcoming as market. in our BXB in revenues, the

expense Third, share QX. based versus compensation increased

foster incentive long-term key period. typically driver the changes is increase culture retention of largest units are change also reflects to the ownership where stock compensation the expense, in now as While leveraging this strategically broad-based long-term as we in a management the headcount both growth well and drive restricted and hires made structure the

foreign on was year We reduction U.S. release of provision also million of to incurred and period, of a a $X $X.X related quarter-over-quarter million to QX. to our the year. jurisdictions. $XXX,XXX our loss benefit largely in during addition to $XXX,XXX expenses of from $X.X to improved income our our million QX impact million Due to slightly tax million earned widened primarily in allocated related QX our between adjusted period impact a tax entity the This $X full OSB from to of conclusion, a net EBITDA and benefit valuation driven the tax low U.S. in results the loss in in $X.X full shift hold, in QX. the income the as In by in benefit allowance and

Slide XX, to and on Moving our results. full year

Coolbet As over segment. my executing focused We growth in employees XXX the of a the the new of now and global our over Silverback including grew employees making eight new and and opening for I XXXX during XXX% offices, both revenue and with year. welcomed over investments mentioned represented our acquisitions XXX are BXC strategy remarks, closing year long-term

our XXXX a strategy annual event. recap two EBITDA where negative negative at approximately in progressive $X.X align to million our XXXX with breakeven, our ground for this of was at that with to improvement revenue slight challenging foundation the extracting improvement of with the about to in us from recent $XXX I'll market operated we our the we operational years, into adjusted to Investor the and refine in sight in XXXX current of a In made Day this are integration spoke million we've efficiencies and has in are the full ourselves XXXX has year margin in clear scaling $XXX,XXX given have to we're a last and laid. elaborate the line we to XXXX. stake the business guidance, progress we'd While on year pleased we moment momentarily take The environment. execution like Coolbet heading, but

driven investments While infrastructure-related We company. the our the year. operational staffed, significant acquisitions operating gained which the a expenses technical talent, in two with sufficiently and grew the throughout year as leverage turning marks we point key and operating in ended costs, through critical corporate business categories for in

costs administrative technology XXX% costs were general and as and to and percent combined, product declined a XX%, which revenue XX% of revenue Our in over and of respectively, XXXX.

launch Our from the We quarter the loss in net expanded effect with XXXX, versus in related $XX.X QX our in million payments $XX.X acquisition. to content income $XX.X payments our primarily hold million $XX.X to our corporate RGS and of million as related The to million program. to the both for upcoming low of well of events the cash product given as offering XXXX for exclusive decline Super timing annual on purchase the rights the accounting timing balance related insurance Coolbet in of amortization sheet. ended

full Slide our to and guidance. year on Moving XX,

anticipate growth majority U.S. from XXXX, are $XXX the to to Dermot as near-term to revenue environment $XXX levels. XX% remains our And year growth we come organic XX% a BXB will introducing full outlined, forward BXC million, which from implies million XXXX segment. Today, we operating look we of challenging. and As guidance of revenue

comprising approximately versus total to million revenue. We and revenue $XXX to thirds XX% XXXX growth expect $XXX range BXC of XX% representing to two million, of

offerings RGS representing BXB in midterm more million, anticipated range scaling of growth to million of growth modest $XX we $XX with while Super in experience near Our to and the will revenue X% Sports XXXX. our an XX% to segment are GAN

implemented lower Related our business we to million on our is As talent. third-party controllable to to Dermot company operations, the in that as several entirely I focused costs profitability. We such almost costs efforts near-term reducing fixed development some of annual without highly controlling with locations impacting out noted, switching point measures are $X reliance of and approximately take and the nature. skilled costs, vendors on accelerating also will cost public out

early reminder, the are is the of the rollout scalable. iGaming as Lastly, OSB our we still recurring in BXB U.S. highly of market. And a innings revenue

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of Regarding our QX each, XXXX end it's the adjusted Prior event and the Correcting provided range the the represent for and expect in representing revenue hold occurring quarterly considering representing seasonally not that revenue months November revenue XXXX. of the higher XX% of EBITDA. World have first to two quarter to observed today, past Cup guidance lower quarters highest XX% to and cadence, quarter we we is both this low December. over the QX and of for with a proportion than

GAN X% this modest including economics. year improved the licensing as and RGS. on, includes introducing for headcount Super RGS full effect transparency adjusted This exclusive the for Super million, which fees our more to as to are Sports we into the arrangements related of what million year, content to to EBITDA investments progressing entire growth in towards we year, of how and We well are provide are focused be expect $XX now our between metric $XX we

XX% we to revenue of able adjusted achieve year that EBITDA expect of are scaled in With with investments ahead. the revenue through with flow newly we to approximately impact will continued made in XXXX, the our infrastructure we the combined incremental the growth,

EBITDA for XX% adjusted perspective, through to adjusted our me $X million. flow will we between EBITDA. be in of repeat quarterly QX incremental Let and million that, XXXX, From a revenue to $X expect

Our adjusted finals. in traditional Cup the seasonality aligning EBITDA inflection will build throughout World with the and year, QX the with

free be net positive targeting income by also are and We flow cash to QX.

income net to as D&A, we will tax. Our and slightly adjusted shift from increases share-based income anticipate compensation EBITDA in in XXXX bridge

that We We structure, be this are taking $X increased move planned ensure profitability. repurchase the hold quarter, year had this plan. million levels. towards our capital through we'll evaluating our steps to results and actively flexibility as to retain our We we the view delayed forward to stock undervalued but as impact at these we stock

a raising on shares. of Wrapping XX. accelerate both We debt to BXB capital investments are our currently up and evaluating small amount repurchase Slide

performance the in the quarter, with with fourth pleased our hold aren't we underlying the quarter of was results, BXB results. anomaly strong consolidated BXC the While impacting both and

XXXX growth $XX EBITDA. $XX Our adjusted million million the XX% and outlook revenue implies midpoint at in to

We expect year, positive EBITDA BXC every controls be recurring, implementing and quarter we throughout that this by to driven the BXB business, our our cost is profitable are company. adjusted business largely scaling in

you. first Beynon from drive time, questions. Instructions] session. you. to for Macquarie. term and focus GAN in now it Please Sports back question Chad and RGS. Our conducting operator to for squarely with Hector, be execution your the [Operator XXXX question. At cost the with Our investing Super I'll turn over while is the line we’ll open control this near question-and-answer a comes profitability line to Thank of strategically proceed up to

Chad Beynon

taking question. my Thanks afternoon. for Good Hi.

more part should able the And willing Just that wanted from Sports? RGS other like that your the thought some able BXB why so feel into the GAN we think have you on that guide. know Thanks. little RGS, would then guess, of into XXXX and you'll confirm think then didn't of assuming that's you of second as of is is. be you're XXXX, the strong, the Can systems. to kind Super you I to were Investor you probably I XXXX, where us And Super to plug I impact I but issued kind dig be to I positive those just is, confirm Dermot, confusion look to recognize revenues. content you the at if if the outlook help Day?

Dermot Smurfit

revenue right XXXX of that now. million to $XXX or see what is on. we Yeah. is as per confirm I'm more happy now narrative the line top in in earlier --

to today take announced going of take do takes clients relatively contract. RGS fact, times, the months the exact will view It operator about are the in throughout made. totality kick does technical many contribution any year. in, conservative for RGS Super on such to integration. the quarter, in contract ramp to those As Chad. the takes about throughout the Super do three last Typically, Super It announcements those months item major second the as to time processes four XXXX. before but the to RGS, the very frame. time Hence, the these And six is do they're deals, same It in to place

is the integration Entain, all -- with technical and for done example So for awaiting submission.

multi-month a is a well-understood is industrial that it tennis So game like a played period. over relatively of cycle

Chad Beynon

patent importantly, suit, infringing awareness your are be you. anything maybe it in in guide? to a the And on out others like it patent of filing that about better of process. this kind more in will to the XXXX long guessing term? your you way Is Thank think patents. the kind assuming you near drawn to raises -- then said, terms the guess of I Okay. I'm suit And well, contributions related fee But

Dermot Smurfit

Chad. revenues Yeah. account the modest I XXXX XXXX. mean already takes taken, guidance legal in there actions into very associated with assume is any don't patent anticipated our costs And -- we or the

intellectual these beyond are the steps of use NVIDIA's legal bring and property. to -- to very that, appropriate in -- table the obtain fair and patented specific comment. the appropriate compensation position not really seek the having So parties to take we order for It's in our it's to to of

Chad Beynon

jump back Okay. it. the I’ll queue. Thanks, in Appreciate Dermot.

Operator

comes Riley. Please Bain B. your Our with with question. David proceed next from question

David Bain

Thank Great. you.

step if of and forward an a of ones you York look large online just kind model. U.S. promoting our kind just mid-level the future? a be potential take just been model, I'm for coin at market liberalization second of online how kind even the thesis Tribes, sort sort maybe guide, back would has look licensing And like long-term market more you side the Part just open market candidates of contemplate could the First, the seeing as other California. we of New those or operators, like more wondering, of of of like your the of

Dermot Smurfit

the of that to years. Native what complete course opportunity BXB as several tribes few power technology for aligned the online. the American over we're Yeah. coming GAN, states enterprise in we thesis the your pun I at a with GAN and move more online, major California see look solution, they intended, no call next David, Certainly as

American influencing. political New of think And in the American first more I come at few Native That process consistent fourth for many that BXB and us real client in gaming with the client and the legislative appeared I environment. we our would credible bring these characters very don't influences industry said, to online. have live, states excited being tribal this provided to chip gives hope see tribes and New a political time, repeats a game hope, major native and in York have taxation Michigan York a live to I and going play we be think significant the weeks' very other as review, would our

David Bain

back other picture just get the anticipate, it another or within customer? bit? with And Silverback of you once eyeballs tech, exclusive lobby content. you BXC Or big Great. kind we aware do we Ainsworth and that work Is end lot of RGS. a customer that closer understand offerings asked manage it market a how do follow-up the or the that question statistics? operator a of Can it on follow-up, you post acquisition I of to the If Okay. And us at that make of have to a How kind process kind Chad mean it. having the the what fits of you on relationship-oriented? to we where land-based closer help more Super making process share is look incredible maybe

Dermot Smurfit

Yeah.

side, And BXB the for is of important In located customer over content. where instances, marketing those phraseology casino highlight that of So content take marketing clients' other underlying seen where ways that other be of incredibly deck in about and engagement the Ainsworth influencing as visibly. that decisions in online in floor control having for floor. promote to certainly product RGS in in services then to make gaming year. leaderboard or got top it are on tournaments provider, associated are are promotions games exactly outperform specific the active will games end virtual the average specifically will actions instances, and in the engagement the example, virtual slots. are BBB play and Silverback it's crafted that are gaming and to and slots the since they've platform the in gaming bonus very November we've effectively we time But where the of control whether these having using and located revenue The the some Ainsworth's their imminently. last Ainsworth Michigan, team we been And of appropriate slot of They're Super we've many that course, launching clients our generation.

David Bain

-- I or that yourself that Awesome. their going mitigating on Karen, can on I'm it and mean just the based I are by market. there? recovery Churchill And over both overly or we one Okay. material, assume the to for that's go and factors assume exiting wasn't can comments

Dermot Smurfit

some David, BXB will feel continuing This retail-oriented is of hopefully I But that the situation. evaluate. to and the Well, of is enterprises, the picking not parties majority in and we'll least exit revenues, contractual space, discussions that states exiting a continue in I yet various for now. we thing in new relatively parties announcing up last be as different But mean, actually year be to provided We're is exiting. clients from deals of for I'm very access protection the disappointment going on market believe third different are an the to our fantastic vast an have we determined. the show third with which the those downside at -- Yeah. modest X% to for [ph] financial for operations us, Churchill, to

David Bain

Right.

Okay.

Okay, great. Thanks, guys.

Operator

question. [Operator with Instructions] Our comes David question Jefferies. from Please Katz your with proceed next

Cassandra Lee

not behalf of spend marketing to sports Churchill my This this smaller Hi. economic U.S. on Thank you of profitable there them David. be And unit that operations. seems are continue enough when simply for normalizing Downs the in indicated for that has to iGaming. there the is whether is room remains betting, kind operators concerns question. even Cassandra asking for taking

to want take your on assumption? Just get that

Dermot Smurfit

in that take offer I industrial over that, perspective markets unpredictable time, think relatively iGaming that legislation continue roll I'll iGaming, and in will there Cassandra, Well, to however, a that is perspective to fashion. out, fair relatively

have will have iGaming, betting, the like betting, Indiana online Europe as and sports other online significant profits betting states will So and there an and online just who business, in over jurisdictions suppliers retail even smallest add beyond. Illinois from iGaming the time. market to for already be we drive In we see sports environment, others, and sports in opportunities

opportunity be next for ultimately somewhat a a and opposed about the delayed also level. this over in get BXB TAM here the So That U.S., the of substantial of EBITDA I and basis. fundamental think GAN. And universe be that positive fragmentation really quickly like built question the term expanded the the does legislation impacted and And clients for few financially materially characterize years, for deferred the iGaming that to greatly at legislation longer as BXB market are business here will a a will implemented. iGaming share, I'd how course potential foster and structured healthy it in term order will to of transition we U.S. we drive to and will as continue long will very in on and to success ensure very, the

Cassandra Lee

Thank you taking question. it. my for Got

Dermot Smurfit

you. Thank

Operator

your from question. Craig with comes Hallum Capital proceed question next Group. Sigdahl Please Ryan with Our

Ryan Sigdahl

does one questions and the piggyback Good one the off that first Two was asked. just of afternoon.

Why have that well small win exiting existing I those? reducing two think do versus known operators the better as of see all why states not likes commodity the reputable spend, very betting, Churchill states retail sports and that's guess betting, Downs, different I in of have online do what have sports a yet. current guess is which, you materially you than said, future you as be Because and current future are? So in states? iGaming, fragmentation states you many will states But that

Dermot Smurfit

of the the in data one actual Ryan, as to go. the how out it I unique all example Michigan. get right operating perfect the of And Well, like we hold have states advantage in Michigan

New traits. Jersey, Michigan common share some

betting sports online and casino and tribal in operators both betting where Michigan operators. sports gaming state and You've got retail you got iGaming commercial

around in So been have online their Michigan, positive we generate that online vast quickly, -- relatively cash to The able majority know consistently is clients of flow their from centered casino operations. activities. that cash

tax, that GAN, commercial is for about and XX be ever out gets total a clients if in a trialing operators to will that reimplemented, operators, significant legislative load state. casino the launch we're online for framework that get Michigan fourth our of So opportunity great model you

Ryan Sigdahl

share, thought I you're the top, have don't kind X fragmented I of nature of don't had operators or I the the Maybe Michigan what counteracts market -- know, which saying? X of XX% in plus the

Dermot Smurfit

market in I think, the markets, obviously which clients our about to Ryan, of ability these question first induce the your enter the to was profits generate in them place.

Ryan Sigdahl

Curious I so can that my the question, largest deal RGS include we does happen for comment. not with that does the fragmentation But to No, was which it consolidation the happen. take that ones, Ainsworth, on MGM? second also players, Super will anyway, seeing amongst that believe we're the lower fragmentation off-line.

Dermot Smurfit

specifically U.S. delivery here It's online MGM onto product for the offerings in the

Ryan Sigdahl

Thank you. Great. Good guys. luck,

Dermot Smurfit

sir. Thank you,

Operator

the of Securities. Northland line Please proceed question. from question Our your with comes Gibas Greg next with

Greg Gibas

just Wondering trends the question. Hey, both you Coolbet's market Europe takin in and South share if discuss thanks for America? could

Dermot Smurfit

moment. the market challenging. with the is market, very seen at much they Latin a Europe, Latin number Yeah. expand Europe In Greg, players markets but of we've more podium American share American overall the slightly trend in are selective line in

increasing maintaining their they're it. opposed as think to or I rapidly greatly share market

Greg Gibas

follow-up, throughout adjusted EBITDA And imply build a that to sequentially Okay. ramping is that year. the going Does Karen, kind I saying were Great. the of on you think EBITDA as front? quarters then

Karen Flores

ramp outlined. it in think, revenue the follow that will trends -- I Yeah. general, I the will mean I

So of that increasing XX% XX% revenue. to

the of the building kind also in too. forward, we're Cup just period, but quarters, but So because World in X high back-loaded the have effect again, fourth is quarter, that a the seasonally of first we there looking

Greg Gibas

you. Thank it. got Okay,

Operator

Dermot have to Smurfit, CEO And for I and remarks. reached like we Ladies to call the closing gentlemen, end session. back turn the the question-and-answer would of Mr.

Dermot Smurfit

today Thank quarter for our you joining year fourth XXXX full and earnings. for

are continue mitigate our segment. and challenges business, grow to to some confident these strategic we're this steps in there BXB I'm short-term industry While taking

impacting GAN we BXC path, quarter a addition, Sports execution we've current in will have a and positive a strong In segment that the to transitioned follow profitable continued the as launch of business XXXX now we first fast-growing growth generating EBITDA profitable continues year to full the our in be while our and U.S. Super into Ontario, Thank you in cost business out growth strategic all to year. the of you forward grow without updating taking of initiatives. throughout all on business our RGS the I conjunction balance progress do again. look

Operator

This concludes today's conference.

participation. all may time. your disconnect lines Thank for this your you at You