Online gambling technology outfit GAN saw its shares tumble after announcing the loss of a significant sports betting revenue stream.  

On Thursday, GAN announced that its revenue in the three months ending June 30 had nearly doubled from the same period last year to $8.3m. Adjusted earnings totaled $1.9m, up from a negative $200k in Q2 2019, but the company still booked a net loss of nearly $8.8m for the quarter thanks in part to expenses related to the company’s initial public offering in May.  

The gains came via GAN’s Real Money iGaming (RMiG) revenue, which more than doubled year-on-year to $4.15m. GAN also booked $1.53m in ‘Service Revenue’ aka the licensing of its online gambling patent for linking customers’ rewards accounts to their RMiG accounts. 

Q2’s RMiG gains were credited to a strong performance by the Parx Casino in Pennsylvania and FanDuel’s launch in Pennsylvania and New Jersey. But GAN announced Thursday that FanDuel “deployed their proprietary digital wallet for its sports gaming business, and therefore GAN does not anticipate sports gaming revenues from FanDuel after August 31.”