Bragg and Spin a Perfect M&A Match
Canada’s Bragg Gaming acquires Spin Games for instant foothold in US.
M&As continue to shake up the interactive gaming market from one side of the world to the other. The fast-paced expansion of iGaming in the United States has a lot to do with it. The world’s largest online gambling corporations are operating in Europe; mostly in the UK. More recently, the industry is turning its eye to a burgeoning US market.
Foreign companies could spend countless hours and exorbitant amounts of money worming their way into the US, applying for licenses, completing background checks, proving financial stability – the whole due diligence rigmarole. Or, they could simply join forces with a US-based company that’s already got the necessary documentation under their belt. That’s exactly what Bragg Gaming Group had in mind while negotiating the acquisition of Spin Games, LLC.
Bragg Gaming to Acquire Spin Games
The news came down the wire this morning in the form of an official press release out of Toronto. The two companies are entering into a merger agreement in which Bragg will acquire Spin in a cash and shares purchase worth approximately US$30 million. Spin’s shareholders will receive $10 million in cash, plus $20 million in shares of Bragg Gaming (TSX:BRAG, OTC:BRGGD). The final closing will take place once all the necessary regulatory approvals are satisfied.
Bragg Gaming, based out of Toronto, Canada, has spent the last decade positioning itself in prime European and Latin American markets. Most of its operations take place through its fully-owned subsidiary, ORYX Gaming. ORYX is a turn-key solutions provider of online and mobile casino, sportsbook and lottery services. The brand holds licenses in 10 jurisdictions, including Malta and the UK.
With ORYX under one wing, and Spin under the other, Bragg Gaming can capitalize on both European and US markets; one being the world’s current epicenter for online and mobile gaming, and the other poised to play catch-up at break-neck pace.
Fast-Track to US Market Capitalization
Bragg Gaming CEO Richard Carter was quick to confirm the strategy behind the company’s decision.
“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 Carter. “This transaction lays a strong foundation for our strategy of building a tier one vertically integrated iGaming business in the US.
Carter goes on to explain the merger as a means of positioning Bragg for proven, long-term success. “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,” he said. Such transactions, including the acquisition of Spin, will be “the cornerstone of our future growth strategy;” particularly “during the early innings of the US growth story.”
From US, to Canada, and Beyond for Spin
The crew over at Nevada-based Spin was equally delighted to welcome Bragg’s professionalism, experience and oversight. Spin Founder and CEO, Kent Young, comments:
“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.
“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,” said Young. The company’s B.C., Canada license already boasts the embossing of provincial approval, and is awaiting integration with the BCLC’s iGaming portal, PlayNow.com.
“In addition to strengthening our support of our existing customers and markets,” Young continues, “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.”
Key Components of Bragg Gaming
Bragg Gaming Group defines itself as a “global B2B gaming technology and content provider”. Established in 2012, Bragg has expanded its operations to encompass strategic market positions in Europe and Latin America. The next phase in its progressive business model is to continue expanding into high-potential, international online gaming markets.
Some of the key components to Bragg Gaming’s success include:
Delivery of an innovative B2B iGaming platform, casino aggregator, sportsbook management, and other key services, via the wholly owned subsidiary of cutting-edge content studio, ORYX Gaming.
Servicing of prime markets with the leading, global-reaching B2B technology of a full, turnkey solution package.
Provision of ORYX Gaming technology’s fully customizable, scalable module that is developed in-house, licensed across multiple jurisdictions, and capable of providing turnkey online casino, sportsbook and lottery services.
Integration of ORYX’s powerful new Player Engagement Platform (PEP) directly through the multi-channel module’s proprietary remote gaming services. PEP provides a suite of player engagement tools to boost retention through specialized gamification features, including Achievements, Leaderboards, Quests, Tournaments and promotion of bespoke Jackpot games.
Spin Games, LLC Feature Highlights
Established in Reno, Nevada in 2012, Spin has grown into a leader in Remote Gaming Server (RGS) technology. The company specializes in the production of world-class gaming content and interactive software for B2B social and real-money iGaming markets. Spin’s vast portfolio includes proprietary titles, as well as third-party content from top-tier studios like Konami Gaming, Everi, Incredible Technologies and more.
Some of Spin’s most noteworthy features include:
Proprietary ROC™, RGS-hosted mobile casino game titles produced in-house by global studios in North America and beyond.
Distribution licenses from a wide variety of immensely popular gaming titles, produced by a series of world-class development labs.
Established integration of gaming platforms with a multitude of US-based operators, including BetMGM / Roar Digital, Caesars, DraftKings, FanDuel, Golden Nugget, Hard Rock, Parx, Penn National Gaming, Resorts, Rush Street Interactive, TwinSpires, Unibet and WynnBet.
Live, licensed operations up and running in Michigan, New Jersey, and Pennsylvania, with pending deployment in British Columbia, Canada.
Founder, Kent Young, is a highly experienced, 30-year industry veteran whose background includes senior executive roles at both Aristocrat Leisure and Aruze Gaming. He has also served as board member to GSA, as well as committee advisor to G2E.
Bragg’s acquisition of Spin Games is projected for closure in late Q4-21.
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