Bragg Gaming speeds US iGaming market entry via $30m acquisition of Nevada-based Spin Games
In a move that it says will immediately establish its U.S. operating footprint and set the foundation for the firm’s growth strategy in the region, Bragg Gaming Group (TSXV:BRAG) will reportedly acquire Nevada-based interactive software developer and distributor Spin Games LLC in an approximately $30 million cash and stock transaction.
Announced Wednesday, May 11th, 2021, terms of the definitive agreement includes the Reno-headquartered firm receiving a $10 million cash payment alongside $20 million in Bragg common shares, $5 million of which are to be issued upon closing of the deal, subject to regulatory approval, with the balance paid over the next three years.
Chief Executive Officer for Bragg Gaming Group, Richard Carter explained in a press release that “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.”
The transaction, said Carter, “lays a strong foundation for our strategy of building a tier one vertically integrated iGaming business in the US.”
Spin Games‘ remote gaming server (RGS) along with its casino content are fully licensed and distributed in Michigan, Pennsylvania, and New Jersey, and is licensed with dispersal pending in Canada‘s westernmost province, British Columbia. Founded in Reno, Nevada in 2012, the firm’s portfolio comprises more than 150 interactive games including slots, bingo, video poker, virtual sports games, keno, and “out-of-the-box content concepts. And has content and RGS licensing agreements with industry-leading content providers including Illinois-based designer, developer and manufacturer of entertainment products, Incredible Tecnologies, Inc, Everi, and Konami Gaming.
The merger agreement is in keeping with the global B2B gaming technology platform provider’s previously announced strategy to diversify its revenue from European regulated markets and increase its U.S. operations in an attempt to take advantage of the rapidly expanding online casino markets in the U.S and Canada.
Leading operator access:
Courtesy of the transaction, the international gaming technology company is to gain access to “key strategic operator relationships” in the U.S. including WynnBet, Unibet, TwinSpires, Rush Street Interactive, Resorts, Penn National Gaming, Parx, Hard Rock, Golden Nugget, Caesars, BetMGM/Roar Digital and the two largest fantasy sports companies in the North American country, DraftKings and FanDuel.
Bragg says its intention is to leverage the aforementioned key operator relationships so that it may cross-sell its existing casino content that is currently live in European markets while continuing the development of its “US-centric content creation.”
New role for Young:
Founder and Chief Executive Officer for Spin Games, Kent Young, who brings more than three decades of gaming sector executive experience, will immediately join Bragg Gaming Group as President – Americas. There, he will “play a key role” in driving the group’s U.S. market roll-out strategy.
Young said…
“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.
Beneficial move:
“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.”
The transaction will close after final approval is received from state gaming regulators, and satisfaction of other customary closing conditions.