TORONTO - Bragg Gaming Group (NASDAQ: BRAG, TSX: BRAG), an international provider of iGaming technology and content with a market capitalization of $86 million, has announced an exclusive technology platform and game development partnership with Caesars (NASDAQ:CZR) Entertainment, aimed at the United States and Canada markets. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, positioning it well for this strategic expansion.
The collaboration upgrades Bragg's role from a content supplier to a technology partner, highlighting Bragg's iGaming technology and content development capabilities. With a current revenue growth rate of 4.64% and an impressive gross profit margin of 51.24%, the partnership is expected to drive double-digit growth in Bragg's revenue and profitability in 2025, with a particular focus on North America, which is a strategic target for Bragg's expansion.
Caesars will lease Bragg's Remote Gaming Server (RGS) technology and has the option to license additional Bragg products, including the Bragg HUB delivery and game aggregation platform, and the Fuze™ player engagement platform. These technologies offer features such as bonuses, free rounds, jackpots, and AI-powered game recommendation engines.
The agreement also establishes a platform for Caesars' newly formed in-house games studio to develop and deploy proprietary, custom game titles across its online casino brands, including Caesars Palace Online Casino (EPA:CASP), Horseshoe Online Casino, and Caesars Sportsbook & Casino.
Bragg has previously created two exclusive titles for Caesars Palace Online Casino and continues to supply new online slots and casino games to Caesars' digital platforms in various U.S. states and Ontario, Canada.
Neill Whyte, Chief Commercial Officer at Bragg, expressed enthusiasm for the new project with Caesars, citing Bragg's extensive expertise and comprehensive technology suite for high-quality online casino game development.
Matt Sunderland, Senior Vice President & Chief iGaming Officer at Caesars Digital, praised Bragg's technological expertise and emphasized the strategic importance of developing exclusive digital content to offer unique experiences to their players.
The announcement is based on a press release statement and contains forward-looking information, which includes expectations for the partnership's impact on Bragg's operations and results, as well as the company's strategic growth initiatives. These forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those projected. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 7 additional ProTips and detailed financial metrics, including exclusive Fair Value calculations that currently suggest the stock may be undervalued.
In other recent news, Bragg Gaming Group reported a 16% increase in year-over-year revenue for Q3, with a gross profit increase of 18% to EUR 14 million. The company also reported a 40% increase in proprietary content revenue in the U.S. market. Financial analysis firm, Benchmark, revised their stock price target for Bragg Gaming from $8.00 to $4.00, maintaining a Speculative Buy rating. This adjustment followed a strategic review by Bragg Gaming, which led to the removal of the acquisition premium consideration from the company's valuation.
Bragg Gaming Group's CEO, Matevz Mazij, reaffirmed the company's growth outlook and stated that the current strategy remains the best path to enhance shareholder value. The company continues to anticipate significant growth opportunities, particularly in the U.S. and Brazil. Bragg Gaming Group's revenue guidance is set at EUR 102 million to EUR 109 million, with adjusted EBITDA expected to be between EUR 15.2 million and EUR 18.5 million. These recent developments reflect Bragg Gaming Group's focus on key markets in the U.S., Canada, Latin America, and Europe, along with its plans for expansion into emerging markets.
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