Operators Dropping Credit Cards Took 84.6% of GBank’s Gaming Interchange With Them

GBank Financial Holdings (NASDAQ: GBFH) is the Las Vegas parent of a bank that has built its growth story on gaming payments.

The Quarter in the Bank’s Own Numbers

GBank Financial Holdings announced net earnings of $3.9 million, or $0.27 per diluted share. This compares to $5.5 million and $0.38 per diluted share in the second quarter and $4.3 million and $0.30 a year ago. Net revenue was $20.3 million, down $1.6 million, or 7.3%, from the prior quarter. GBank attributes the decline in revenue mainly to "lower net interchange fees and fewer loans sold".

Revenues from sources other than interest totaled $6.7 million this quarter, down from $9.1 million in the prior quarter. This decline was mainly due to a $1.5 million decrease in net interchange fees. Net interest margin, which measures how profitably a bank lends, increased 17 basis points to 3.95%.

Interchange fees were $0.3 million on $19.5 million in volume, a ratio of about 1.5% compared to about 2.3% implied by the previous quarter. That ratio is a 15M calculation from the disclosed figures, not a published metric.

Daily Gaming Deposits Still Rose

The company’s gaming and fintech deposit average increased from approximately $29.9 million in July to $30.9 million in September. It added that this was "an encouraging early sign that the Company’s gaming and fintech strategy is beginning to gain traction".

However, it caveated that development of this strategy would be longer term, and it did not expect it to have a material impact on results in the near future.

What Is Actually Launching

Distill Taverns rolled out the BoltBetz application across all nine of its Las Vegas locations in September. Terrible’s is expected to launch BoltBetz in early November at three locations, with a full rollout planned during 2027. Integration of the BVNKROLL payments infrastructure with the AXES digital casino management system should be completed by year-end 2026, and the LuckyLoads prepaid card is "now expected to be launched during the second quarter of 2027".

President and chief executive Jeff Newgard framed the quarter around the same line: earnings were affected "by lower interchange income following the decision by several large sports betting operators to discontinue credit cards as a funding source", and his stated goal is that "2027 can be a fresh start at the bank".