The revenue generated by Maryland’s casino operators has experienced a significant decline, according to the latest report. As it turns out, the state’s six casinos generated approximately $163.2 million in revenue from table games and slots – a figure that represents a decrease of $11.6 million year-on-year.

The gaming industry’s contributions to the state reflected the decrease in revenue and declined by almost $2.6 million to approximately $69.8 million.

The figures reported by the casinos show year-on-year declines across the board. Only one casino, namely the Hollywood Casino in Cecil County, managed to beat the odds and report a revenue growth. For context, that property’s revenue increased by 6% to $7.93 million.  

In the meantime, the Live! Casino and Hotel in Anne Arundel Country, a property boasting some 3,800+ slots and approximately 180 table games, experienced a revenue decline of $1.14 million. Despite the slight decline, the property’s overall revenue still stood at $60.86 million.

Ocean Downs Casino in Worchester County, on the other hand, experienced a decline of 7,6% to $7.32 million. MGM National Harbor in Prince George’s County, meanwhile, reported a revenue decline of 9.8% to $68.8 million.

Horseshoe Casino in Baltimore reported a decline of 10.8%. Rocky Gap Casino in Allegany County got the worst of it as its revenue plummeted by 20.6%.

A Man Was Robbed at Horseshoe Baltimore

Speaking of Horseshoe Casino, the property recently became the site of an armed robbery. In late April, a man named Justin was approached by two masked robbers who pointed guns at his head and asked him to give them all of his valuables. Fearing for his life, Justin complied.  

The man later told local news outlets that casino goers should feel safer than that. He questioned the property’s lack of security, saying that the garage is an obvious spot where criminals could strike. However, such areas of “real terror” are currently completely undefended.

In other news, Maryland continues its efforts to legalize online gaming. However, an iGaming bill was deferred to 2026 amid various setbacks.  

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GAN, a major NA B2B provider of iGaming technology provider and an International B2C operator of online sports betting, has published its Q1 2023 report, highlighting its performance during the three months ended March 31.

GAN reported total revenue of $35.1 million, representing a slight 6% year-on-year decrease. Both the B2B and B2C verticals were impacted by the decline, with the company posting $11.3 million B2B revenue and $23.9 million B2C revenue against $13.1 million and $24.4 million in Q1 2022, respectively.

GAN attributed the B2B decrease to a decrease in the company’s contractual revenue rates with its largest customer. The B2C segment, meanwhile, was negatively impacted by the shifting currency rates and the declining US dollar.

Meanwhile, GAN’s operating expenses increased from $29.9 million in Q1 2022 to $31 million in Q1 2023. Adjusted EBITDA plummeted to $39,000 from $3 million in Q1 2022.

Despite the many negatives, GAN reported a net income of $1.5 million in Q1 2023, far surpassing the $4.5 million net loss it recorded in Q1 2022. This was primarily driven by a gain attributable to an amendment of one of GAN’s Content Licensing Agreements.

GAN also reported $40.8 million in cash as of March 31, 2023, representing a noticeable decline from the $45.9 million in the prior year quarter.

Gan Is Optimistic about the Results

GAN’s CEO, Dermot Smurfit, commented on the matter, saying that the quarterly results are satisfactory in spite of the slight declines across the board. He said that the metrics remain encouraging and that GAN expects its strategy to pay off and improve its profitability in 2023.

According to Smurfit, GAN will now lean into its GAN Sports US subsidiary and will rely on select international B2C markets.

Smurfit noted that GAN is also progressing in its strategic alternatives review and is evaluating the opportunities it has to maximize shareholder value.

Our recent announcement and term loan transaction bolstered our financial position and allowed us to modify the conditions of our term loan, significantly reduce our interest expense, and strengthen our balance sheet.

Dermot Smurfit, CEO, GAN

Smurfit clarified that this transaction should be considered a key step in the broader company review process. According to him, it will allow his team to evaluate the available options from a stronger position.

The CEO concluded that GAN has been pleased with its strategic review so far. He promised that the company will provide updates as the process continues but noted that there is no timetable for its completion.

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Aktiebolaget Trav och Galopp (ATG), Sweden’s former horse racing monopoly, posted its Q1 financial results, highlighting a bumpy period for the company. The suboptimal results were attributed to the macroeconomic headwinds.

ATG’s net gaming revenue for the first three months of 2023 was SEK 1.19 billion (around $116 million). This figure represents a 5.9% year-on-year decrease, showing that the company’s business has been impacted by troubles.

The company’s total revenue for the period was SEK 1.37 billion (around $133 million), which translates to a decline of 6.1%. The company’s operating profit for the period, meanwhile, plummeted by 15.7% to $30.8 million.

Horse racing revenue made up 75% of the company’s total net gaming revenue in Sweden and 23% of the net gaming revenue in Denmark. At the same time, casino gaming was responsible for 54% of the company’s Danish revenue and only 9% of its revenue in Sweden.

In Q1 2023, ATG had to pay a gaming tax of $23.7 million, marking a 5.8% year-on-year increase. Its personnel expenses also increased to $13.5 million, an 11.2% YOY rise.

Skarplöth Blamed the Cost of Living Crisis and Inflation

The company’s chief executive officer, Hasse Lord Skarplöth, commented on ATG’s performance in Q1 2023. He noted that the company had to keep pushing against various economic headwinds, including the rising cost of living, inflation and high interest rates. These are the same reasons why the company’s FY 2022 experienced a slight decline.

According to Skarplöth, the company’s Q1 results mirror the overall economic situation. However, not everything is grim for the former monopoly as some of its products showed improvement in Q1 2023.

According to the CEO, the company’s sports betting and casino products recorded improvements of 10% and 20% respectively. However, net revenue from horse racing operations, which are the company’s primary focus, still experienced a decline. Luckily, ATG continues to maintain its market share, Skarplöth concluded.

ATG Was Fined Over AML and Self-exclusion Failings

The suboptimal financial results are not the only trouble ATG has been facing. Last year, the company got into trouble after the Spelinspektionen, Sweden’s gambling regulator, uncovered various AML failings.

As a result, the ex-monopoly was forced to pay a fine of $570,000 and received a formal warning from the regulator.

This fine followed an earlier rule violation where ATG’s self-exclusion scheme did not appear to certain players because of technical failings. This breach earned the operator a $188.4 fine.

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