GameAccount Network’s (GAME:AIM) failure to secure a sale of its internet gaming system in the first half of the year has resulted in the £31 million cap’s pre-tax loss widening to £2.6 million from £0.9 million a year earlier.
The group’s system, called GameSTACK, lets online and land-based casino operators provide their customers with online games like blackjack, roulette and poker.
GameAccount, like many other gambling stocks, had its hopes pinned on the regulation of online gambling in the US but this has proved a huge disappointment and has effectively stalled, hence the failure to secure a system sale.
The stock is now focusing on its ‘simulated gaming’ proposition, which allows people to play casino-style games for free. Net revenue from simulated gaming has risen six-fold to £1.2 million, but this isn’t enough to convince investors, with the shares down 4.5% to 52.5p.
GameAccount is seeing strong demand for its simulated gaming product from casino operators in the US. A further two operators will go live with the product in the fourth quarter, which should further boost its revenue in 2016.
‘The sale of internet gaming systems remains a focus of our overall business strategy,’ GameAccount says. ‘The group continues to engage in advanced discussions regarding a system sale and is targeting the completion of a sale in either the fourth quarter of 2015 or in early 2016.’
A system sale would be a significant share price catalyst but this is heavily dependent on whether further US states regulate real money gaming.