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IN BRIEF
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In an exciting development within the gaming industry, Bragg Gaming Group has formed a strategic partnership with Caesars Entertainment, aimed at elevating their technology operations across the United States and Canada. This collaboration not only marks a significant shift for Bragg as it transitions from a content supplier to a key technology partner, but it also opens doors for innovative iGaming solutions designed to engage players like never before.
In a significant move that promises to shake up the gaming landscape across North America, Bragg Gaming Group has announced a strategic partnership with Caesars Entertainment to enhance technology operations. This collaboration is not just another business deal; it marks a pivotal transition for Bragg, shifting its role from a mere content provider to a vital technology partner. With a focus on the lucrative markets of the US and Canada, this partnership is set to bolster both companies’ positions in the rapidly evolving world of iGaming.
Strategic Business Expansion
Bragg Gaming, operating under the NDAS: BRAG and TSX: BRAG, boasts a healthy market capitalization of approximately $86 million. The firm’s balance sheet reveals a robust financial standing with more cash than debt, enabling it to engage confidently in this strategic expansion. This partnership with Caesars signifies a bold leap, as Bragg seeks to increase their influence and presence in the North American gaming market while reaping the benefits of Caesars’ established reputation and resources.
Transitioning to a Technology Partner
With this new alliance, Bragg’s role evolves significantly. No longer seen merely as a provider of gaming content, the company now emphasizes its capabilities in iGaming technology and content development. According to recent reports, the firm has experienced a current revenue growth rate of 4.64% and an impressive gross profit margin of 51.24%. These financial metrics indicate that fans of iGaming can expect double-digit growth in revenue and profitability for Bragg by 2025, particularly focusing on the North American territory.
What Technology Will Be Utilized?
As per the terms of the agreement, Caesars will utilize Bragg’s Remote Gaming Server (RGS) technology, along with the option to license other products from Bragg, such as the Bragg HUB game aggregation platform and the Fuzeâ„¢ player engagement platform. These technologies bring an array of exciting features, which include enticing bonuses, free rounds, jackpots, and even AI-powered game recommendation engines to enhance player experiences.
Creative Development Opportunities
Furthermore, this partnership enables the formation of an in-house game studio within Caesars. This new studio will develop and deploy proprietary, custom game titles across various online casino brands, including the lavish Caesars Palace Online Casino, Horseshoe Online Casino, and Caesars Sportsbook & Casino. With Bragg already delivering exclusive titles for Caesars Palace and continuously supplying new online slots, their commitment to innovation is evident. For a closer look at how this partnership unfolds, click here.
Statements from Leadership
This venture has garnered excitement among industry leaders. Neill Whyte, the Chief Commercial Officer at Bragg, expressed his enthusiasm regarding the potential of the project, highlighting Bragg’s robust expertise and comprehensive technology suite for delivering high-quality online casino games. In a similar vein, Matt Sunderland, Senior Vice President & Chief iGaming Officer at Caesars Digital, underscored the critical nature of developing exclusive digital content to provide unique experiences for players.
Market Reactions and Future Forecasts
In the latest financial outlook, Bragg Gaming has reported a remarkable 16% increase in year-over-year revenue for Q3, alongside an 18% rise in gross profit to EUR 14 million. Additionally, proprietary content revenue has surged by a stunning 40% within the US market alone. Following a thorough strategic review, financial analysts at Benchmark have adjusted their stock price target for Bragg from $8.00 down to $4.00, yet maintain a Speculative Buy rating.
Future Growth and Market Strategies
Looking ahead, CEO Matevz Mazij of Bragg expressed confidence in their growth trajectory and reiterated that their current strategy is the best course for maximizing shareholder value. Anticipating significant growth prospects, especially throughout the US and Brazil, Bragg’s revenue guidance is projected between EUR 102 million and EUR 109 million, with adjusted EBITDA estimates ranging from EUR 15.2 million to EUR 18.5 million. These recent developments signify Bragg Gaming Group’s commitment to key markets not just in North America but also in dynamically expanding regions across Latin America and Europe.
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Comparison of Bragg Gaming and Caesars Partnership Aspects
| Aspect | Description |
| Type of Partnership | Exclusive technology platform and game development |
| Target Markets | United States and Canada |
| Bragg’s Role | Transition from content supplier to technology partner |
| Revenue Growth Rate | Currently 4.64% expected to drive double-digit growth |
| Bragg’s Technology | Remote Gaming Server, Fuzeâ„¢ player engagement platform |
| Game Development | Custom titles for Caesars’ online casino brands |
| Financial Position | Strong balance sheet with more cash than debt |
| Projected EBITDA | Expected between EUR 15.2 million and EUR 18.5 million |
| Focus Areas | Expansion in U.S., Canada, and emerging markets |
