Vancouver-based Playgon Games, Inc., is reporting a decrease in player activity during the first quarter of 2024 due to a client ceasing its operations.
In January, the big news was that Playgon received the green light to start offering their games in Ontario, after earning Gaming Laboratories International (GLI) Certification in accordance with Alcohol and Gaming Commission of Ontario technical requirements, positioning Playgon for a commercial launch for their mobile live dealer, electronic table games, and daily fantasy technology in the growing igaming market.
During Q1 2024, ending March 31, the company generated revenue of CA$230,289 (US$168,984) from its live dealer platform, a decrease of 20% year over year. The net loss for the period was CA$4,489,773 (US$3,294,555), 12% greater than than a year ago.
Total wagering turnover in Q1 was CA$235 million (US$172 million), down 30%, again due to an operator ceasing operations, the company said in its statement.
Playgon reported that the number of wagers placed in the quarter were 6.8 million compared to 8.1 million year over year. The average daily turnover for the quarter was $2.6 million compared to $3.7 million. Average bet size for the quarter was $59 compared to $64, representing a decrease of eight percent.
In the statement, the company said it’s in the final stages for the launch of VegasLounge in Ontario and added there will be multiple customer/operator (“several Tier 1 brands”) launches going live in the province in the current quarter. Playgon currently has no partnerships with U.S.-based operators and no plans to expand there in 2024, a spokesperson from the company added.
“Our business is still young and when one of our top licensees ceases operations, it can have an adverse effect on our revenue and KPIs,” said Darcy Krogh, CEO of Playgon Games. “We have a healthy and growing pipeline of new customers in both existing and new markets, for which management is confident in the future success of its product in the live gaming market.”
Playgon develops and licenses digital content for regulated igaming markets. The company reported successfully completing eight integrations with new customers in Q1 with final production testing underway, 10 integrations currently in progress and anticipated to be online in Q3, and 15 that are pending. The company expects their first customer launches in Italy in Q3 this year.
