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Online Casino Content Boom Helps Galaxy Gaming’s Revenue Jump In 2023

Written By Derek Helling on April 3, 2024
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Every business hopes that when their expenses increase, their revenue will grow at an even higher rate. That’s what happened for Galaxy Gaming in terms of its investment in and monetization of online casino content in 2023.

The studio saw a 23% jump in gross revenue from all segments, aided by an increase of nearly 8% in gross revenue from its digital division. However, expenses in that division also went up, resulting in Galaxy Gaming taking a reserved approach to its 2024 forecast.

Galaxy Gaming shows heightened investment, revenues from digital sales

Galaxy Gaming provides equipment and games for both physical and online casino partners in the United States. Combined, the company reported $31.7 million in gross revenues for the entirety of its fiscal year 2023, up from $25.9 million in FY2022.

Net revenues were also up to $27.8 million in FY2023 from $23.4 million in FY2022 according to an updated earnings release from Galaxy Gaming. Galaxy Gaming CEO Matt Reback pointed out that the $8.4 million in gross revenue for the final quarter was a record for the company.

The company’s digital division pulled its weight over the fiscal year, bringing in $11.4 million in gross revenue. After $3 million in royalties were taken out of that sum, the net total of $8.4 million, which is marginally up from FY2022.

Accounting for part of those improvements was a renewal of Galaxy Gaming’s supplier license with Evolution. Evolution provides live dealer table games to online casino operators in multiple US states. Amid the further proliferation of new content from Galaxy Gaming’s digital division, the current period might see even more revenue for the company.

Galaxy Gaming’s FY2023 financials define spending money to make money

While revenues from online casino content improved for Galaxy Gaming (OTCMKTS: GLXZ) for FY2023, so did expenses related to that content. For the full year, royalties paid out from the digital division jumped by half a million dollars.

The distribution of Galaxy Gaming’s proprietary games like “Roulette Up” — which DraftKings Casino, Golden Nugget Online Casino, and WynnBet Casino added in January — represents an example of these expenses. Not only does the game production represent a cost but Galaxy Gaming is likely paying a royalty to server provider ODDSworks as well.

Because of the simultaneous updates in both costs and revenues, Galaxy Gaming is projecting a modest 6.1% change to its net revenues for FY2024 at the midpoint. Further monetizing its content with other online casino operators could result in Galaxy Gaming surpassing that expectation.

The creation of new titles for those operators might also improve revenues, although that would represent a cost as well. So far, Galaxy Gaming has been able to maintain revenue growth that outperforms its cost increases.

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Derek Helling

Derek Helling is the assistant managing editor of PlayUSA. Helling focuses on breaking news, including finance, regulation, and technology in the gaming industry. Helling completed his journalism degree at the University of Iowa and resides in Chicago

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