Flurry of M&A Activity Redefining the Online Gaming Market Landscape

FN Media Group Presents Microsmallcap.com Market Commentary

 

New York, NY – December 15, 2020 -It’s been a wild and crazy year for the online gambling industry, especially with the rise in demand coming from a shift in traffic away from attending brick-and-mortar casinos towards players participating on their mobile devices from the comfort of their own homes. In particular, many online poker and online casinos are up triple digits since October 2019, while mobile wagering on sports is up as new markets become legalized over the next year—representing more than half of US states. The result of all this activity has been a flurry of new partnerships, mergers, and acquisitions in the industry, including from Bragg Gaming Group (TSX-V:BRAG) (OTCQX:BRGGF), Penn National Gaming (NASDAQ:PENN), Landcadia Holdings II (NASDAQ:LCA), Caesars Entertainment (NASDAQ:CZR), and GAN Limited (NASDAQ:GAN).

 

But not all of the activity is taking place in the United States, as European markets such as Switzerland continue through the stages of opening up to online casino gaming. Bragg Gaming Group (TSX.V:BRAG) (OTC:BRGGF) just recently announced a strategic content deal between its subsidiary ORYX Gaming and leading licensed Swiss operator Grand Casino Luzern’s asset mycasino.ch.

 

“The Swiss online market is one that we have had an eye on since the new legislation entered into force in 2019 and we are thrilled to finally make our debut,” said Matevz Mazij, Managing Director of ORYX Gaming. “Grand Casino Luzern makes a perfect partner for us as one of the most established operators in the market with a strong online brand and we look forward to working together to build our presence in the country.”

 

Throughout 2019, online gaming was still illegal in Switzerland, with all access to unlicensed sites and apps blocked. However, some July 2019 gambling reforms would go on to enable land-based casinos like Grand Casino Luzern to launch their own online operations.

 

So far, the launch has been a significant success, with Switzerland’s latest official figures touting revenue from online gaming licensees generating CHF23.5 million (more than USD$26 million) in just the first partial year of being live.

 

In the case of Grand Casino Luzern, the mycasino.ch brand alone generated nearly 38% of the total Swiss online gaming market with CHF8.9 million in revenue (nearly US$10 million) in 2019.

 

“We have had a strong start to our online operations and are constantly looking for fresh and exciting content to enhance the experience for our growing customer base. We’re thrilled to have the opportunity to collaborate with ORYX moving forward,” said Wolfgang Bliem, CEO of Grand Casino Luzern. “Our main objective is to provide our Swiss players with pure entertainment at the highest level, and we believe ORYX’s portfolio of games can help us achieve just that. We are pleased to be the first operator in the country to offer the games through ORYX and are confident that the games will be huge hits with our players.”

 

Bragg Gaming Group had recently announced an exceptional revenue growth of 72% in Q3 2020. Bragg continued to focus on expanding its global footprint, onboarding 14 new customers in the quarter alone. Beyond Switzerland, they’re also in advanced discussions with new customers across multiple other licensed jurisdictions in Europe and Latin America.

 

As well, Bragg recently spoke out in support of Canadian legalization of single-event sports betting.

 

“We’re very supportive of the move to legalizing single-event betting,” said Rob Godfrey, Board Member at Bragg Gaming. “Jurisdictions around the world are modernizing their gaming regulations to reflect today’s global gaming market, and Canadians – and the country’s operators – should have the same ability to place bets as their international peers. The reality is that many Canadians are already placing single-event bets today, but through illegal black-market channels that make them vulnerable. This proposed legislation will move a significant portion of these activities to a safer, more regulated environment that better protects Canadians’ interests while also ensuring a level playing field for Canadian operators.”

 

According to the American Gaming Association, experts now believe that huge holes in state budgets will likely spur further expansion of sports betting and online casino gambling across America.

 

Working to strengthen their presence in the US sportsbook market, online B2B gaming technology provider GAN Limited (NASDAQ:GAN) made a splash by buying one of the fastest-growing iGaming and sportsbook operators in Europe, Coolbet, for $175 million.

 

“We believe this acquisition is being undertaken at a highly attractive valuation, relative to the opportunity to rollout B2B sports betting services in the US,” said GAN CFO Karen Flores. “We have undertaken to acquire Coolbet for approximately $175 million, which represents 3.5 times 2021 forecasted revenue.”

 

There is much speculation into who the first major client that GAN and Coolbet have alluded to (but declined to identify), with some suspecting it might be Penn National Gaming (NASDAQ:PENN).

 

Much of this is tied back to the statements of Penn’s CEO Jay Snowden, who has pointed towards his company’s focus on growing within the younger demographics that are increasing their interests in sports betting.

 

Penn has already garnered plenty of accolades for the performance of its January 2020 acquisition of Barstool Sports. The acquisition has paid off very well for Penn National Gaming, as the company highlighted to investors the overwhelming success of the Barstool Sportsbook app.

 

Caesars Entertainment, Inc. (NASDAQ:CZR) also made one of the biggest splashes in the sector, acquiring British sportsbook experts William Hill in a deal worth $3.9 billion in September. Given that the sportsbook market in parts of Europe is more mature than many of the US jurisdictions, bringing on UK expertise is a good way to get an edge.

 

“We’re looking at different activities and bolt-on acquisitions. This (William Hill’s European business) can definitely fall under that category,” Caesar’s CEO Itai Pazner told Reuters.

 

Already in the state of Indiana, Caesar’s Entertainment was working in partnership with William Hill’s rival 888Sport, which itself is moving forward to enter three more US markets.

 

As new markets open up to legal gaming, a new joint entity formed through a reverse merger between Landcadia Holdings II (NASDAQ:LCA) and Golden Nugget Online Gaming is wasting no time in expanding its footprint. Since state regulators in New Jersey finally approved the deal, the newly combined entity has gone on to enter the state of West Virginia, and the Illinois market. Together, their exposure now consists of 5 states: Illinois, Michigan, New Jersey, Pennsylvania, and West Virginia.

 

Companies like Bragg Gaming Group look to be in a good position as the online gambling market continues to expand. As more mergers and acquisitions appear on the horizon, interest in this industry looks set to continue growing.

 

Disclaimer:  Microsmallcap.com (MSC) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with MSC or any company mentioned herein. The commentary, views and opinions expressed in this release by MSC are solely those of MSC and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable MSC and FNM for any investment decisions by their readers or subscribers. MSC and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

 

The Article and content related to the profiled company represent the personal and subjective views of the Author (MSC), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (MSC) has not independently verified or otherwise investigated all such information. None of the Author, MSC, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated twenty five hundred dollars by MSC, a non-affiliated third party to distribute this release on behalf of Bragg Gaming Group

 

FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

 

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC and FNM undertake no obligation to update such statements.

 

Media Contact:

FN Media Group, LLC

info@financialnewsmedia.com

+1(561)325-8757

 

Source: Microsmallcap.com

Sign Up & Get FREE News Alerts From FNM Today!