Bragg Gaming enters US iGaming market by acquiring Spin Games
12 May 2021
(PRESS RELEASE) -- Global B2B gaming technology and content provider Bragg Gaming Group has entered into a definitive agreement to acquire Spin Games, a Reno, Nevada-based B2B gaming technology and content provider currently servicing the US market, subject to regulatory approval.
Bragg and Spin today announced they have entered into a merger agreement, under which Bragg has agreed to acquire Spin in a cash and stock transaction for a purchase price of approximately USD30 million. Under the deal the sellers of Spin will receive $10 million in cash and $20 million in common shares of Bragg of which $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.
The Transaction offers a compelling strategic and financial rationale and is consistent with Bragg’s previously announced strategy to diversify its revenue from European markets and grow its US operations to capitalize on the growing US and Canadian online casino markets. The Transaction serves to immediately establish Bragg’s US operating footprint setting the foundation for the Company’s growth strategy in the region.
Spin, through its team of 30+ professionals will provide Bragg with immediate technical, product, regulatory and compliance know-how specific to the US market, reducing time-to-market and de-risking US deployment. Following closing, Spin’s founder and CEO Kent Young, who brings over 30 years of gaming sector executive experience, will immediately join Bragg as President – Americas and will play a key role in the Company’s US market roll-out growth strategy.
Through the Transaction Bragg will gain access to key strategic operator relationships in the US including BetMGM / Roar Digital, Caesars, FanDuel, Golden Nugget, Hard Rock, DraftKings, TwinSpires, Penn National Gaming, Resorts, Parx, Rush Street Interactive, Unibet and WynnBet. The Company intends to leverage these key operator relationships to cross-sell its existing casino content currently live in European markets while continuing to develop its US-centric content creation. Spin’s remote gaming server and casino content are fully licensed and distributed in New Jersey, Pennsylvania and Michigan, and is licensed with deployment pending in British Columbia, Canada.
The combined offering of Spin and Bragg’s wholly owned subsidiary ORYX Gaming (“Oryx”), positions the Company to deliver an enhanced full turnkey iGaming, sports betting and player engagement platform into the rapidly growing US market. The initial planning of technical integrations between Spin and Oryx are currently underway and the combined offering delivers the benefits of Oryx’s advanced turnkey Player Engagement Platform with Spin’s technology, local market know-how and US operator relationships. Additionally, the Transaction deepens Bragg’s global development resources with Spin’s existing development center located in Chennai, India.
“Spin’s existing state gaming licenses and established integrations with online casino operators, comprising the majority of the US market uniquely positions our Company for future growth in the North American market” said Richard Carter, Chief Executive Officer of Bragg Gaming. “This transaction lays a strong foundation for our strategy of building a tier one vertically integrated iGaming business in the US.”
“We have seen from the European market that the ability to deliver best-in-class proprietary content alongside a full turnkey iGaming and player management platform is key to building a successful B2B online casino technology provider. The cornerstone of our future growth strategy will involve bringing best-in-class content in-house during the early innings of the US growth story to position our company for long-term success.
“We believe this Transaction will be transformative for the Company, providing significant positive impact for our respective employees, customers, and shareholders. Spin’s outstanding product and talented team instantly expands our local market footprint and brings a wealth of US market know-how to the group, including valuable product, technical, regulatory and compliance expertise.
“We welcome Kent and the whole team onboard and we look forward to combining Spin and Oryx capabilities to offer new full turnkey gaming solutions in the US and Canadian iGaming industries.”
“On behalf of the entire Spin team, we are pleased to announce this acquisition which will better position the combined company to expand its support of the rapidly growing US iGaming market with our proprietary and third-party content and our leading remote gaming server technology,” commented Kent Young, Spin Games’ Founder and Chief Executive Officer.
“Since we became one of the first RGS and iGaming content companies approved for online gaming in the US, we have grown our footprint in New Jersey, Pennsylvania and Michigan and been approved to operate in British Columbia. In addition to strengthening our support of our existing customers and markets, this acquisition will accelerate Spin’s ability to expand our content library, pursue new markets and leverage our technology to support iGaming here and in new markets as they open. We are extremely excited to be joining the Bragg team and look forward to a highly successful future together.”