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New York, NY – March 21, 2022 – The gaming industry already brings in more money than North American sports and movies combined, but it’s not stopping there. The booming gaming market, which is currently valued at $173 billion, is expected to top $200 billion in revenue by 2023 and to nearly double by 2027. Naturally, the high-profit margins seen in recent years have increased the competition and has led to high-profile acquisitions as bigger players try to retain market share. As the gaming industry continues on its upward trajectory, companies like Bragg Gaming Group (NASDAQ:BRAG) (TSX:BRAG), International Game Technology PLC. (NYSE:IGT), Microsoft (NASDAQ:MSFT), Electronic Arts (NASDAQ:EA), and Take-Two Interactive (NASDAQ:TTWO) are focused on solidifying their positions and expanding into new markets.
Global gaming technology and content group Bragg Gaming Group (NASDAQ:BRAG) (TSX:BRAG) expects multi-year growth due to the expansion of its platform and its ongoing iGaming content. Bragg‘s new market strategy is also expected to contribute to growth.
The global gaming technology and content specialist fourth-quarter revenue increased by 14.4% to US$17.5 million while adjusted EBITDA grew 22.2% to US$1.7 million. For FY 2021, Bragg revenue came in at US$64.7 million and adjusted EBITDA was US$8 million, an increase of 25.6% and 29.8%, respectively, from the prior-year period.
The company reiterated its full-year 2022 outlook for expected revenue of US$78-82 million and adjusted EBITDA of US$10.5-11.7 million. The midpoints of those ranges represent year-over-year growth of 20% and 39%, respectively.
Bragg’s current total addressable market is approximately US$13.5 billion. The company expects it to grow further to over US$21 billion by the end of 2022, reflecting Bragg’s planned entry into the United States and Canada as well as other regulated European markets this year.
“Our operating momentum has continued in the early months of 2022. We also continue to make progress on closing our acquisition of Spin Games as Bragg has completed all of its regulatory requirements,” Bragg Chief Strategy Officer Yaniv Spielberg said. “We are now awaiting final review by the sole remaining regulatory body which is expected to be complete in the next few months. Importantly, we have made substantial progress on the integration of the Spin Games technology platform with our ORYX platform and have already submitted the integrations for certification by various approved U.S. gaming laboratories.”
“As such, once we receive the remaining required regulatory approval to complete this acquisition, we expect to be able to introduce our iGaming content to players in a number of U.S. states very quickly. Importantly, the pace of U.S. deployments will benefit from Spin Games’ existing relationships with more than 30 U.S. iGaming operators,” Spielberg added.
On March 8, Bragg announced that it is one of the first iGaming providers to be licensed by the AGCO, the regulatory body for Ontario’s iGaming and sports betting regulated market. The license allows Bragg to offer its player account management (PAM) platform, iGaming content and managed services to local iGaming and sportsbook operators. Canada’s iCasino and Online Sports Betting market is valued at over US$2 billion and many expect Ontario to become one of the largest iGaming markets in North America when the market opens on April 4.
Bragg is also continuing to expand its presence in Europe, recently adding Spain and the Czech Republic to its growing roster. Bragg’s popular content is also available on regulated markets in Switzerland, Germany, Greece, the Netherlands, and the United Kingdom.
For more information about Bragg Gaming Group (NASDAQ:BRAG) (TSX:BRAG), click here.
Gaming Companies Are Expanding Their Footprint
International Game Technology PLC. (NYSE:IGT) has grown its sports betting leadership in Washington State. The global leader in gaming has entered a multi-year agreement with the Kalispel Tribal Economic Authority, an instrumentality of the Kalispel Tribe of Indians that owns and operates Kalispel Casino in Cusick, Washington. Kalispel Casino will leverage IGT’s PlaySports technology and trading advisory services to power its upcoming retail sportsbook. This is International Game’s second sports betting venture in Washington State with the Kalispel Tribe of Indians. In December 2021, IGT rolled out its PlaySports technology and business advisory services to the Turf Club Sportsbook at the Northern Quest Resort & Casino in Airway Heights, Wash. IGT PlaySports is available in over 60 arcades across the United States.
Microsoft (NASDAQ:MSFT) is acquiring Activision Blizzard, a leading game development and interactive entertainment content publisher. This acquisition will accelerate the growth of Microsoft‘s gaming business across mobile, PC, console, and cloud and pave the way for the Metaverse. Microsoft will acquire Activision Blizzard for US$95.00 per share, in an all-cash transaction valued at US$68.7 billion, including Activision Blizzard’s net cash. When the deal closes, Microsoft will become the world’s third-largest gaming company by revenue, behind Tencent and Sony. With games like “Candy Crush,” Activision Blizzard’s mobile business represents a significant presence and opportunity for Microsoft in this growing segment.
On February 15, Electronic Arts (NASDAQ:EA) and BioWare launched Legacy of the Sith – the latest expansion for Star Wars™: The Old Republic™. Legacy of the Sith is the latest major content expansion available to all subscribers in an ever-evolving game experience that features all-new story campaigns, the ability for players to customize their characters to a complex level, and a range of quality improvements to make the game more accessible than ever. This launch continues the 10th anniversary of the popular story-driven MMORPG that gave gamers around the world the opportunity to live their own Star Wars™ story. Star Wars: The Old Republic 10th Anniversary Celebration will introduce new content, events, updates, and more throughout 2022.
Take-Two Interactive (NASDAQ:TTWO) announced in January the acquisition of Zynga. Under the agreement, Take-Two will acquire all outstanding shares of Zynga in a cash and stock transaction valued at US$9.861 per Zynga share, with a total enterprise value of approximately US$12.7 billion. This combination unifies two world leaders in the interactive entertainment industry and establishes Take-Two as one of the largest and most diverse mobile game publishers in the industry. Both companies have created and grown iconic franchises, which will combine to form one of the largest and most diverse intellectual property portfolios in the industry.
Bragg Gaming Group’s total addressable market should continue to grow as more states approve iGaming over the next few years.
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