The side-bet licensor turned a scrapped Evolution buyout into a share repurchase and told investors its recurring business is pointed at a record three months.
- The company guided to second-quarter revenue of $7.8 million to $7.9 million, with recurring revenue climbing about 8 percent.
- Evolution now owes a termination fee of $5,234,678 after two outstanding gaming approvals for the deal never came through.
- On Galaxy’s 21+3 progressive paytables, awards are quoted “for one,” so a $5 straight on a $1 wager returns $5 in all rather than $5 plus the stake.
- Directors signed off on a $4 million repurchase of company stock on July 22, retiring a $750,000 plan that had gone unused.
LAS VEGAS – A day after Evolution AB backed out of its $85 million purchase of Galaxy Gaming, the owner of the 21+3 and Lucky Ladies blackjack side bets found a new use for the money. On July 22 the company cleared the buyback of as much as $4 million of its own shares and told the market it is heading for record recurring revenue in the second quarter.
A Collapsed Deal Funds the Repurchase
The authorization took hold right away and pushed aside an earlier $750,000 plan that had never put a dollar to work as of July 22, according to its announcement of the program. Purchases can happen on the open market, through privately negotiated deals, or by way of a Rule 10b5-1 trading plan.
Matt Reback, president and chief executive, framed the move as a show of confidence in the company and in what its shares are worth. Steven Kopjo, the chief financial officer, said it pointed to the firm’s financial strength and its aim to return value to shareholders by whatever route it can.
The numbers line up because of what Evolution has to hand over. The Swedish supplier accepted that it owes Galaxy $5,234,678 under the canceled agreement, due inside two business days, comfortably more than the $4 million on the table. That takeover, signed in July 2024 at $3.20 a share, lapsed once the July 17 outside date arrived with two gaming regulators still short of approval. Neither company has identified which two.
Sales Climb While Profit Sits Still
The company put second-quarter revenue at $7.8 million to $7.9 million, according to the preliminary figures it released the same morning as the buyback. That clears the $7.5 million logged a year earlier and the $7.7 million from the opening quarter of this year. Adjusted EBITDA is set at $3.3 million to $3.4 million, ahead of the $3.2 million booked twelve months ago.
The flat line is the bottom one. Galaxy sees net income of $0.9 million to $1.0 million, even with the $1.0 million it posted in the second quarter of 2025. Total revenue across those ranges gains 4 to 5 percent, while the roughly 8 percent Reback pointed to covers recurring revenue on its own. He tied that momentum to both the Digital and Core sides of the business and said the segment is on course for another record quarter.
What Remains in Galaxy’s Catalog
Galaxy still holds a deep shelf. It carries north of 140 licenses across 28 states and more than 30 countries, owns 21+3 and Lucky Ladies, and distributes Perfect Pairs beneath a Netco Ltd. trademark. Its Galaxy Gaming Digital arm routes the same lineup to online operators, which is why those side-bet rings turn up on live dealer blackjack feeds and in brick-and-mortar pits together.
The main game sitting beside them is still the lowest-priced bet on the felt. From a six-deck shoe paying 3-to-2, with the dealer standing on soft 17, doubling cleared on any two cards and after a split, and late surrender on offer, clean basic strategy trims the house edge to roughly 0.34 percent, about 34 cents gone for every $100 wagered. At $25 a hand over 80 hands an hour, that works out near $6.80 an hour in expected loss, a rate few wagers in legal online blackjack or on a live floor get anywhere near.
The Paytable Sets the Cost, Not the Logo
The add-on bets are priced on their own footing. The 21+3 Progressive rules of play cleared by the Nevada Gaming Control Board turn on one detail: every award listed is paid “for one,” and the wager itself stays with the house instead of coming back. Hit a straight on a $1 progressive bet and the $5 shown is the full return, not $5 stacked on top of the dollar you put up.
That single line does the work. The frequency of a straight is locked to the deck and holds steady when a casino changes templates; the payout is the operator’s to set, and the space between the two is the house edge. Cutting an award from “to one” to “for one” opens that space wider without moving a card, so the paytable pinned at the seat, not the label printed on the felt, is what prices blackjack side bets.
Galaxy intends to publish its complete second-quarter results on or about Aug. 7, after the close.