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Why GAN Stock Was Soaring 10% Today

By Rich Duprey – Jun 15, 2020 at 12:42PM

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The New Jersey online gambling market still looks healthy.

What happened

Shares of GAN (GAN 14.09%) were jumping 10% in morning trading Monday after the online gambling software provider offered an update on New Jersey's internet and sports betting market.

So what

With land-based casinos closed since mid-March and virtually all major sports leagues suspending their seasons because of the COVID-19 pandemic, gamblers in the state have only been able to place bets online. 

Data from New Jersey's Division of Gaming Enforcement indicate the climate is ripe for a rebound as the economy begins to open.

Odds leader board for sports

Image source: Getty Images.

Now what

GAN noted the internet gambling win in the state was $85.9 million in May, a 124% increase over the $38.3 million recorded last year, while the total internet sports wagering handle (including future events) more than doubled to $117.8 million for the month despite no sports events being played. The handle is how much money is bet, while revenue is how much a casino wins.

GAN said the May internet win total compared favorably to the $54.6 million notched in April, though it was naturally down from the $163.4 million won in the pandemic-interrupted month of March and the $436.5 million won in February.

New Jersey has one of the most-developed sports betting markets. But because the news from New Jersey betting providers is only tangentially related to the U.K.-based GAN at best, it hardly seems a good reason for the market to bid up its shares.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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