PokerStars parent company The Stars Group reported strong third quarter revenue and said it is eyeing the newly opened Pennsylvania online gaming market for an expansion in the U.S.
Pennsylvania recently became the fourth U.S. state to legalize online gaming. PokerStars already has a presence in neighboring New Jersey.
“With a population almost twice the size of New Jersey, Pennsylvania is poised to become a significant marketplace for iGaming and a potential boost to our U.S. poker business as Pennsylvania is expected to share liquidity with New Jersey and other U.S. states,” Brian Kyle, chief financial officer of The Stars Group said on a conference call with investors. “We are optimistic that Pennsylvania will be a catalyst for other U.S. states to continue the momentum of iGaming regulation in the U.S.”
Marlon Goldstein, chief legal officer for the company said the company is exploring a partnership arrangement in the state as well as applying for a license of its own.
“We’re still evaluating our options in terms of who we may want to partner with and the landscape in Pennsylvania generally,” he said. “But we are really excited to be competing in that market sequentially as soon as possible.”
The group also announced a strong third quarter earnings report.
According to CDC Gaming Reports, revenues from casino and sportsbook grew 48 percent to $95.2 million year-over-year, while global revenues from poker posted 12.5 percent growth to $221.4 million.
Enterprise-wide, net revenues grew 22 percent to $329.4 million. Adjusted EBITDA grew 26.5 percent to $155.8 million over the prior year quarter. Adjusted net earnings per diluted share grew from $0.42 to $0.58.
“Not only did we see improvement in our poker business, but our casino continues to grow with a significant active player base, and our online sportsbook continues to see meaningful growth in turnover,” said Rafi Ashkenazi, chief executive officer. “We are now one of the world’s largest online casino and online live dealer casinos among our public competitors based on active players, which is an outstanding achievement for such a young offering.”
