Bragg Gaming Group Provides Update on Strong Q2 2021 Performance, and Operational and Strategic Development Progress

TORONTO, July 14, 2021 – Bragg Gaming Group (TSX:BRAG, OTC: BRGGF) (“Bragg” or the “Company“), a global B2B gaming technology and content provider, today provided an update on several aspects of its business including preliminary revenue estimates for the three month period ended June 30, 2021.  

“Our financial growth as well as the operational and strategic development momentum we demonstrated in 2020, and in the first quarter of this year, continued in the second quarter,” said Richard Carter, CEO of Bragg. “We are making consistent progress with our growth initiatives including the introduction of new proprietary online games with better economics while expanding our footprint into new iGaming markets. The integration and performance of Wild Streak Gaming and the anticipated closing of the Spin Games acquisition later this year will position Bragg to leverage our existing technology platform, which includes in-demand player engagement tools, with new proprietary content and customer relationships positioning Bragg to address the large U.S. iGaming market opportunity. Our ongoing progress and success across the business has further established Bragg’s foundation to achieve long-term growth.”

Preliminary Q2 2021 Revenue

Bragg expects to report 2021 Q2 total revenues of approximately EUR €15.0 million (USD $17.7 million) pre-acquisition, representing a year-over-year increase of 23.5% compared to the 2020 second quarter period, and a 5.7% quarterly sequential increase. Reflecting this expectation, total revenues for the first half of 2021 are expected to be approximately EUR €29.2 million (USD $34.5 million). The Company’s revenue guidance for 2021 remains unchanged at EUR €47 million (USD $55.5 million) with adjusted EBITDA of EUR €4 million (USD $4.7 million) pre-acquisition.

This updated financial outlook is based on information available to the Company as of the date of this release and is subject to the completion of quarterly closing procedures.

The Company is pleased with its overall operational progress and performance, and in particular, the performance of two new proprietary games that were launched in Q2 on its Oryx Gaming (“Oryx”) network from its in-house Oryx studio. In addition, the Company successfully launched a series of exclusive licenced casino games from third-party studios supported by the Oryx player engagement and data analytics tools.  

The Company anticipates releasing its 2021 second quarter results on August 11, 2021, and will provide a more detailed update on the second quarter’s performance during its Q2 earnings call.

Updates on Wild Streak Games Acquisition and Closing of Spin Gaming Acquisition

Following the Company’s acquisition of Wild Streak in early June, Wild Streak has continued the revenue growth it demonstrated in FY 2020 and in Q1 2021 across both land-based and online casinos, with online revenue growth outpacing the growth in land-based revenue.

In Q2 2021, Wild Streak launched two online casino games: Amazing Money Machine and Lucky Lightning. These games, together with Congo Cash and Temujin Treasures (launched in Q1 2021), have demonstrated solid performance (e.g., wagering, gross gaming revenue and unique players).

As of June 30, 2021, Wild Streak had seven online casino games live in key iGaming markets including in New Jersey, the UK and other regulated jurisdictions in Europe.

The Company continues to make progress with the U.S. and Canadian licencing process in connection with its previously announced acquisition of Spin Games LLC (“Spin”), and continues to expect to complete this acquisition in Q4 2021 pending approval from state gaming commissions. The Company has already been granted licensing approval from GPEB, the British Columbia regulator, subject to the closing of the Spin transaction. Further, the Company has submitted its licensing application to the New Jersey Gaming Commission and expects to submit its remaining two U.S. licensing applications, in Pennsylvania and Michigan, in Q3 2021.

The technical integration between Spin and the Company’s Oryx Hub distribution platform has been completed. The combined offering will deliver the benefits of Oryx’s advanced player engagement, data tools and platform technology alongside Spin’s U.S. market content and operator relationships and is expected to provide a differentiated and widely distributed iGaming product offering.

German Facing Market Regulatory Regime Update

The anticipated new iGaming regulatory regime in Germany, the country where the Company derived the largest portion of its revenue in 2020, became effective on July 1, 2021. All operators in Germany are now required to comply with the new regulations.

The Company will continue to monitor how the German facing market adjusts to the new regulatory framework and is closely working with its German customers to help navigate the changing regulatory landscape.

NASDAQ Listing

The Company has filed an application for the direct listing of its shares on the Nasdaq Stock Exchange. The Company remains committed to this goal and expects to complete the direct listing of its shares on the NASDAQ exchange in Q3 2021.


Chris Looney joins Bragg Gaming as Chief Commercial Officer

Appointment deepens global markets experience of the company’s management team

TORONTO, July 7, 2021 – ORYX’s parent company Bragg Gaming Group (TSX:BRAGOTC: BRGGF)) (“Bragg” orthe “Company”) is pleased to welcome industry executive Chris Looney as Chief Commercial Officer.

Mr. Looney brings a wealth of gaming industry experience, having previously held progressively senior roles at Microgaming, and prior to joining Bragg held the position of Commercial Director at Red Tiger Gaming, where he was instrumental in driving the company’s growth and success. 

In his role, Mr. Looney will work closely with Bragg CEO, Richard Carter, to develop and execute on Bragg’s strategic vision for expansion in new regulated markets, including the growing U.S. market. Bragg believes the addition of Mr. Looney will help advance Bragg’s position in the North American B2B iGaming space.  

The addition builds on Bragg’s momentum, with Bragg recently entering into a definitive agreement to acquire U.S. iGaming technology and content supplier, Spin Games, and having completed its acquisition of Nevada-based slot studio Wild Streak Gaming. Bragg expects the acquisitions to broaden Bragg’s proprietary content and technology offerings to service markets in the U.S., Europe and globally. 

Bragg also owns ORYX Gaming, an established European iGaming turnkey solution provider, offering proprietary, exclusive and aggregated casino content, player account management (PAM), player engagement and data platforms, as well as managed marketing and operational services. 

“We’re thrilled to welcome Chris to our management team,” said Richard Carter, CEO of Bragg Gaming. “He has an impressive track record of driving growth and success, and his extensive industry knowledge will be crucial as we continue to expand globally into key markets such as the U.S., the U.K., Italy, Canada and anticipated new market openings such as the Netherlands.” 

“Bragg presented an opportunity I couldn’t turn down,” said Mr Looney. “The company’s global presence and proprietary product and content portfolio in the B2B iGaming space provide a solid foundation for further expansion into new markets. In North America in particular, jurisdictions continue to evolve, regulate and open up. Bragg is well-positioned to succeed in these markets and I’m excited to be part of the game plan.”

Bragg Gaming Continues US Expansion; Acquires Premium Content Developer Wild Streak Gaming

Las Vegas based content creation studio specializing in high quality casino slot games designed for online real money and land-based casino applications.

TORONTO, June 2, 2021 – ORYX’s parent company Bragg Gaming Group (TSX:BRAG, OTC: BRGGD) (“Bragg” or the “Company“) today announced that it has acquired Wild Streak Gaming (“Wild Streak“), a Las Vegas, Nevada based content creation studio with a portfolio of 39 premium casino slot titles supported across online and land-based applications (the “Transaction“).
Bragg signed a purchase agreement to acquire all of the outstanding membership interests of Wild Streak in a cash and stock transaction for a purchase price of approximately USD30 million. Pursuant to the Transaction, which closed simultaneously with the signing of the purchase agreement, the sellers of Wild Streak received USD10 million in cash at closing and will receive USD20 million worth of common shares of Bragg over the next three years, subject to acceleration in the event of a change of control.


Together with the pending acquisition of Spin Games (“Spin”), announced on May 12, 2021, the Transaction serves to advance Bragg’s acquisition strategy by increasing its ability to distribute and develop high-quality online casino content to the US market in-house. The Transaction provides Bragg with a library of 39 premium casino content titles, including several top performing land-based titles, and a robust suite of intellectual property and know-how including game designs, mathematic works, advance game mechanics and features that are specifically tailored for US markets.


Wild Streak’s design team comprises experienced mathematical and creative minds from the casino gaming industry and includes Doug Fallon, the founder and CEO of Wild Streak and a renowned land-based slot designer with over 20 years of industry experience. Doug worked in several executive marketing and design positions over 11+ years at Aristocrat before founding Wild Streak. Wild Streak has created popular games for the largest US land-based slots manufacturers and designed the games and mechanics behind several well-known land-based slots titles and brands along with successful games in both social and real money online casinos. Wild Streak has a library of land-based content that will be customized for the USA online market along with building upon existing high performers such as Dragon Power in the USA online market.


Effective at closing of the Transaction, Mr. Fallon will join Bragg as Managing Director of Group Content and will play a key role in leading Bragg through its US content creation strategy while also collaborating closely with the Company’s European development staff to facilitate the cross-selling and repackaging of Bragg’s proprietary European content for US operators.


Upon the completion of the Spin and Wild Streak transactions, Bragg will have successfully executed on its strategy of acquiring the essential resources and technology assets required to become a tier one vertically integrated B2B iGaming business operating in US and Canadian markets. Bragg’s consolidated operations will comprise an enhanced full turnkey iGaming, content delivery and Player Engagement Platform with integrations into the majority of the tier one operators across both US and European markets, and a robust in-house content development function with localized market expertise that will allow the Company to expand its proprietary content offering.

Wild Streak reported USD1.05M in revenue and USD233,000 of EBITDA in FY2020, and USD487,000 in revenue and USD241,000 of EBITDA in Q12021.

“In an industry where premium content is king, Doug and his team have built up an enviable track record of developing leading premium casino slot content for both the land-based and online casino industry,” said Richard Carter, Chief Executive Officer of Bragg Gaming. “We look forward to integrating this know-how into Bragg’s overall offering and significantly expanding the Company’s higher margin proprietary in-house casino slot content capabilities.

“We expect this Transaction to be materially enhancing to both revenue and EBITDA in the first full year of ownership, as well as strategically compelling given Wild Steak brings a wealth of US market casino games insights into the group, including valuable game designs, advanced game mechanics and features that are specifically tailored for and proven in the US market.

“We welcome Doug and the whole Wild Streak team onboard, and we look forward to leveraging Doug’s expertise to lead our US and global content creation strategy,” he added.
“Richard and the Bragg Gaming executive team have put in place the strategy and key components to accelerate their growth and market share in the iGaming market, and Wild Streak is excited to be a cornerstone for their growth strategy,” commented Mr. Fallon. “We are highly impressed with the ORYX Gaming technology stack’s robust foundation and their roadmap for additional capabilities in development. We are looking forward to working with the ORYX team to create unique player experiences as we embed their technology into our game designs.”
“As the trends indicate, much of the historical content designed for Europe does not resonate with the traditional American player and we believe our background is an ideal fit with for the Bragg Gaming Group as it focuses on this emerging market,” he added.


Wild Streak Gaming Highlights
• Initially focused on land-based game design and mathematics, Wild Streak has been increasingly focusing on online content as it customizes games for a wide variety of markets in the US and Europe.
• Growing portfolio of 39 titles with a variety of game assets and design mechanics that service a broad array of operators and slot players with games deployed on 12 different platforms including land based, online and social casinos.
• Passionate agile team with multiple employees having over 20 years of experience in the slot design industry working for some of the largest companies including IGT, Aristocrat, Scientific Games and Konami.
• Wild Streak’s game content is distributed across six land-based platforms around the globe including traditional Class 3 casinos, video lottery terminal (VLT), limited payout machines (LPM) and Class 2 casino markets. Wild Steak has collaborated and deployed game content with leading global manufacturers including IGT and Scientific Games.
• Proven performers in land-based casino market across multiple slot manufacturer platforms.
• Highly successful in the NJ USA online market with Dragon Power and multiple successful titles released in Europe in 2021 including Congo Cash, Temujin Treasures, and Amazing Money Machine.


Bragg Gaming Group Highlights

• Leading global business-to-business gaming technology and content provider serving markets primarily in Europe and Latin America via its proprietary ORYX Gaming full turnkey solution.
• Its modular, scalable and fully customizable ORYX Gaming technology and content solutions have been developed, licensed, launched and operated on behalf of more than 125 iGaming and sports betting operators worldwide.
• The full ORYX turnkey solution offers online casino, sportsbook and lottery operations including the proprietary ORYX remote games server, ORYX Hub and the powerful new Player Engagement Platform (PEP).
• The innovative PEP suite of engagement tools offers proven retention-boosting gamification features such as Quests, Achievements, Leaderboards, Tournaments and bespoke Jackpot game promotions.
• Richard Carter was recently announced as CEO of Bragg, moving from the position of Board Chair, which he had held since October 2020.

About Wild Streak Gaming
Wild Streak Gaming is a game studio specializing in casino slot game design supporting land-based casinos, online real money casinos and social gaming applications. The creators at Wild Streak have decades of casino industry experience specifically focused on casino games. Wild Streak Gaming partners with clients in slot design, portfolio management and marketing for mutual success.

About Bragg Gaming Group
Bragg Gaming Group (TSX:BRAG, OTC: BRGGD) is a global B2B gaming technology and content provider. Since its inception in 2012, Bragg has grown to include operations across Europe and Latin America and is expanding into an international force within the growing global online gaming market.
Through its wholly owned subsidiary ORYX, Bragg delivers an innovative business-to-business iGaming platform, casino content aggregator, managed sportsbook and managed services provider, offering cutting-edge content from leading studios.
Bragg’s ORYX Gaming is licensed by the Malta Gaming Authority (MGA) and the Romanian National Gambling Office (ONJN) and its content is certified or approved in 18 other major jurisdictions. Underpinning Bragg Gaming Group’s commitment to information security, ORYX Gaming was recently awarded an ISO/IEC 27001 certificate.

Bragg Gaming Announces Q1 2021 Results

TORONTO, May 13, 2021 – B2B gaming technology and content provider Bragg Gaming Group (TSX:BRAG, OTC: BRGGD) (“Bragg” or the “Company“) today released its financial results for the three months ended March 31, 2021.

“We’ve continued to build on the strong momentum of 2020 with an excellent first quarter,” said Richard Carter, CEO of Bragg Gaming. “Revenue is up by 62 per cent year-over-year and Adjusted EBITDA increased by 234 per cent. We’ve also seen a 54 per cent increase in the number of unique players using Bragg content, have launched nine new operators and our customer pipeline for the remainder of 2021 is expected to continue to grow and expand globally, underpinning future company growth in 2021.

“We continue to invest in our employees, our technology and our product offering, and this has allowed us to commercialize our in-house casino content studio, with our first game recently launched across our network,” continued Mr. Carter. “With further in-house casino games and player engagement tools scheduled for upcoming release, and our acquisition of Spin Games LLC laying the foundation for our strategy of building a tier one vertically integrated iGaming business in the U.S., Bragg Gaming has never been better positioned for long-term success.”

Q1 2021 financial highlights

  • Revenue increased by 62 per cent to €14.2M (C$20.9M[1]) in the first quarter of 2021, compared to €8.8M (C$12.9M) for the first quarter of 2020, maintaining quarterly growth momentum since Q1 2019
  • Quarter-over-quarter revenue increase of 3 per cent, from €13.8M (C$20.3M) in the fourth quarter of 2020 to €14.2M (C$20.9M) in the first quarter of 2021
  • Wagering revenue generated by customers[2] up by 52 per cent to €3.5B (C$5.1B) compared to €2.3B (C$3.4B) in Q1 2020
  • The number of unique players[3] using Bragg games and content increased by 54 per cent up to 2.4M, from 1.6M during the comparable period in Q1 2020
  • Gross profit increased by 68 per cent to €6.6M (C$9.8M), compared to €4.0M (C$5.8M) with an increase in margins from 45 per cent to 47 per cent, mainly attributed to the shift in proportion of revenues from games and content to iGaming and turn-key services, the latter of which have lower associated cost of sales
  • Net loss for the period was €1.1M (C$1.6M), a decrease of €4.6M (C$6.8M) from Q1 2020, mainly due to the full settlement of the ORYX earn-out on January 18, 2020, resulting in nil expenditure from re-measurement of deferred and contingent consideration and accretion on liabilities in the current quarter (Q1 2020: €5.0m)
  • Adjusted EBITDA[4] was €2.3M (C$3.4M) in Q1 2021, up 234 per cent compared to €0.7M (C$1.0M) in Q1 2020, with an increase in margins from 8 per cent to 16 per cent, primarily as a result of higher scale
  • Cash and cash equivalents as of March 31, 2021 increased to €30.1M (C$44.3M) compared to €26.1M as of December 31, 2020 (C$38.4M)

Selected first quarter 2021 performance indicators

Euros (Thousands)Q1-21Q1-20%
Revenue14,1968,78462%
Adjusted EBITDA2,342702234%
Adjusted EBITDA margin16%8%106%
OperationalQ1-21Q1-20%
Wagering revenue (Euros)3.5B2.3B52%
Unique players2.4M1.6M54%
Revenue/ top 10 customers62%65%-3%

Business highlights

  • Successful launch of nine new B2C operators[5] during the period across a number of jurisdictions, including PAF (Finland), iGaming platform Senator (Croatia), Swiss market leader Casino Luzern and Maxbet (Romania)
  • Improved customers revenue diversification, with 62 per cent of revenue for Q1 2021 derived from the top 10 customers, as compared to 65 per cent in Q1 2020
  • Launched 11 new casino games fully certified and distributed successfully throughout the entire network
  • Signed agreement to be the exclusive distributor of slots studio Sakuragate outside of Japan
  • Completed a private placement for €1.9M (C$3.0M) – Board of Directors and management participated

Ongoing strategy

  • On May 12, 2021, Bragg announced that it had entered into an agreement to acquire Spin Games LLC (“Spin”) in a cash and stock transaction for a purchase price of approximately US$30 million. Under the deal the sellers of Spin will receive US$10 million in cash and US$20 million in Common Shares of the Company, of which US$5 million in Common Shares will be issued on closing and the balance over the next three years. The transaction will close following final approval from state gaming regulators and satisfaction of other customary closing conditions
  • Recently announced the appointment of Richard Carter to the role of CEO, effective May 1, 2021
  • Announced intent to trade on the Nasdaq Stock Market and completed share consolidation to support the listing
  • First in-house developed proprietary casino game launched across the Bragg network with encouraging early signs, with five more planned in the remainder of 2021
  • Continuing to invest in technical infrastructure, an in-house content studio, increasing operational efficiencies, and deepening data analytics, gamification and bonusing features
  • Continuing to explore strategic M&A opportunities in the U.S. and globally

Guidance

Bragg’s revenue guidance for 2021 remains unchanged at €47m (C$69M) with adjusted EBITDA of €4m (C$6M) pre-M&A.


[1] Bragg Gaming’s reporting currency is Euros. The exchange rate provided for Canadian dollars is 1.47. Due to fluctuating currency exchange, this rate is provided for convenience only and may differ from the rate used to calculate 2020 numbers

[2] “customer ” is a licensed entity that contracts directly with the group for B2B gaming services

[3] “unique players” are defined as individuals who made a real money wager at least once during the period.

[4] Adjusted EBITDA is a non-IFRS measure. For important information on the Company’s non-IFRS measures, see “Non-IFRS Financial Measures” below.

[5] “operator ” is a licensed entity that contracts directly or indirectly with the group for B2B gaming services