- Galaxy Gaming’s digital segment grew 11% to $3.1 million, against 6.2% growth to $5.5 million on land.
- Recurring revenue net of royalties hit a record $7.9 million, now 99% of the company’s total.
- Total revenue rose 5% to $7.9 million and adjusted EBITDA climbed 11% to $3.5 million.
- Three Card Poker, the family 21+3 grades hands by, runs about a 3.4% house edge to blackjack’s 0.34%.
LAS VEGAS – Galaxy Gaming digital revenue rose 11% to $3.1 million in the second quarter, well ahead of the 6.2% growth its land-based table-game licensing business managed over the same three months, the side-bet supplier reported Monday.
Digital Grew Well Ahead Of The Casino Floor
Galaxy runs two licensing streams, and they are pulling apart. GG Core puts proprietary table games, side bets and table systems on physical casino floors, and its recurring license revenue grew 6.2% to roughly $5.5 million. GG Digital licenses the same content to online operators, and it grew 11% to $3.1 million, the company reported.
Total revenue rose 5% to $7.9 million from $7.5 million a year earlier. Adjusted EBITDA grew 11% to $3.5 million.
Recurring Revenue Hit A Record And 99% Of The Total
Recurring revenue net of royalties hit a record $7.9 million, up 8%. Chief Executive Matthew Reback said that line now accounts for 99% of total revenue, against 82% two years ago. That is the shape of a company shifting from selling games outright to renting them, and the digital line is where the rent is climbing fastest.
Galaxy also repurchased 330,758 shares after the quarter closed, paying about $1.55 apiece and spending $514,202 of the $4 million buyback authorized in July.
What Online Lobbies Are Actually Licensing
The catalog is narrow and very familiar to anyone who has sat at a blackjack table. Galaxy’s table game and side bet catalog carries 21+3, which the company calls the world’s number one side bet, along with Lucky Ladies and Perfect Pairs, plus the Bonus Jackpot System and the Galaxy Operating System that runs progressives on top of them. Galaxy holds more than 140 licenses across 28 U.S. states and more than 30 countries.
Those are the wagers a live-dealer studio or a legal online blackjack lobby pays for. A blackjack table itself is not proprietary, so a supplier earns nothing from the hand. It earns from the circles printed beside it.
The Side Bet Is A Different Game Than The Hand
Under a standard six-deck game where the dealer stands on soft 17, doubling is allowed on any two cards and after a split, late surrender is offered, and a natural pays 3:2, perfect basic strategy faces about a 0.34% house edge. A player betting $25 a hand at 80 hands an hour puts $2,000 of action through the shoe for roughly $6.80 in expected loss. Very little on a casino floor is that cheap.
A side bet is not part of that hand. It is a second wager, resolved on its own paytable, and 21+3 grades the player’s two cards with the dealer’s upcard as a three-card poker hand. Three Card Poker as a standalone game runs about a 3.4% house edge, so a wager priced on that family of math sits several times above the game it is played beside.
Galaxy does not publish house edges for its side bets, and the numbers move with the paytable each operator installs. The blackjack house edge a player actually faces therefore depends on which circles get covered, not just on the rules posted at the table.
That gap between what an outcome really happens at and what the game pays for it is the product Galaxy licenses. It is also why blackjack side bets spread faster online, where a lobby can add one to every table at no cost in felt or dealers.
What Galaxy Expects For The Rest Of The Year
Galaxy said it expects perpetual license sales for full-year 2026 to come in slightly below the prior year as it steers placements toward recurring deals. Anand Singh joined the company as chief technology officer in July.