Bragg Bags Another Record Quarter

Toronto-based Bragg Gaming was out with reassuring revenue of $28.8 million for the fourth quarter, up 16.6% YoY. The EBITDA number came in at €4.7 million or about $5.08 million US. That number was up 68%. Both revenue and EBITDA have been growing for four straight quarters, and CEO Matevz Majiz said “Our investments in proprietary content and AI-enhanced platform capabilities are driving both revenue growth and improved profitability.”

The company hopes to increase North American revenue by 15% in the coming year and points to its partnerships with Caesars, DraftKings, and BetMGM. Just this month, it also rolled out a new agreement with Fanatics to provide its proprietary slot content in Michigan. That leaves it with around 90% market penetration of what is currently a $8 billion TAM US market. 

In January, the company announced a new partnership with Caesars that allows Bragg to share its content and allows Caesars to use Bragg's expertise to begin building out their own proprietary content for Caesars Online and Horseshoe Online. The partnership also gave Caesars access to Bragg's Fuze Engagement Platform and Remote Gaming Server, which will allow the content to be downloaded easily across platforms. 

The company believes the new market in Brazil, which just kicked off in January of this year, will eventually drive 10% of revenue and see the TAM grow from around 1.5 billion this year to more than 3.3 billion in 2029. They also plan further growth in Spain, Sweden, Italy, and the UK this year.

But perhaps Bragg’s biggest challenge is its plans to move away from buying up third-party content and selling this non-exclusive gaming content in an aggregated form to more prominent operators like DraftKings or Caesars. 

Instead, their new approach over the last few quarters has been to concentrate on buying more exclusive content, that is, gambling content that is only available through Bragg and that they have purchased from a third-party developer.

The highest-value content is proprietary, meaning that it has been developed in-house in their own game studios, and from which Bragg receives the full amount of royalties and long-term revenue streams for licensing.