Las Vegas based content creation studio
specializing in high quality casino slot games designed for online
real money and land-based casino applications.
Global B2B iGaming technology and content provider 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.
Cautionary Statement Regarding Forward-Looking
Information
This news release may contain forward-looking statements or
"forward-looking information" within the meaning of applicable
Canadian securities laws ("forward-looking statements"). Often, but
not always, forward-looking statements can be identified by the use
of words such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes",
or describes a "goal", or variation of such words and phrases or
state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements in this news release include, but are
not limited to, information and statements regarding: the
anticipated benefits of the Transaction; the Company's belief that
the Transaction will have a positive impact on its customers and
shareholders; and expectations for other economic, business, and/or
competitive factors.
All forward-looking statements reflect the Company's beliefs and
assumptions based on information available at the time the
statements were made. Actual results or events may differ from
those predicted in these forward-looking statements. All of the
Company's forward-looking statements are qualified by the
assumptions that are stated or inherent in such forward-looking
statements, including the assumptions listed below. Although the
Company believes that these assumptions are reasonable, this list
is not exhaustive of factors that may affect any of the
forward-looking statements. The key assumptions that have been made
in connection with the forward-looking statements include the
following: the impact of COVID-19 on the business of the Company;
the countercyclical growth of the business of the Company; the
regulatory regime governing the business of the Company; the
operations of the Company; the products and services of the
Company; the Company's customers; acquisition opportunities; the
growth of the Company's business, which may not be achieved or
realized within the time frames stated or at all; and the
anticipated size and/or revenue associated with the gaming market
globally.
Forward-looking statements involve known and unknown risks,
future events, conditions, uncertainties and other factors that may
cause actual results, performance or achievements to be materially
different from any future results, prediction, projection,
forecast, performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among others, the
following: risks associated with general economic conditions;
adverse industry events; future legislative and regulatory
developments; the inability to access sufficient capital from
internal and external sources; the inability to access sufficient
capital on favourable terms; realization of growth estimates,
income tax and regulatory matters; the ability of the Company to
implement its business strategies; competition; economic and
financial conditions, including volatility in interest and exchange
rates, commodity and equity prices; the estimated size of the
gaming market globally; changes in customer demand; disruptions to
our technology network including computer systems and software;
natural events such as severe weather, fires, floods and
earthquakes; and risks related to health pandemics and the outbreak
of communicable diseases, such as the current outbreak of
COVID-19.
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements.
Any forward-looking statement made by the Company in this news
release or the earnings call is based only on information currently
available to the Company and speaks only as of the date on which it
is made. Except as required by applicable securities laws, the
Company nor any of its management or directors undertake no
obligation to publicly update any forward-looking statement,
whether written or oral, that may be made from time to time,
whether as a result of new information, future developments or
otherwise.
Neither TSX nor its Regulation Services Provider (as that
term is defined in the policies of the TSX) accepts responsibility
for the adequacy or accuracy of this news release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210602005533/en/
For Bragg Gaming Group: Yaniv Spielberg, CSO, Bragg
Gaming Group info@bragg.games
For Canadian media enquiries or interviews: Keera Hart,
Kaiser & Partners Communications keera.hart@kaiserpartners.com
905.580.1257
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