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New York, NY – January 05, 2021 – -The online gaming industry has completely taken off in the last few years and is accelerating faster than ever in 2020 due to the ongoing health crisis. With casinos shutting their doors for months on end and major sports postponing their seasons, online gambling has become a popular alternative among gamblers across the globe. Favorable regulatory development has also added to the online gambling industry’s appeal, with six states voting in favor of online gaming legalization during the US election. Moving forward into 2021, the market is only expected to grow, creating an exciting opportunity for mobile gambling companies like 888 Holdings (OTCPK: EIHDF), Penn National Gaming (NASDAQ: PENN), International Game Technology PLC (NYSE: IGT), and Bragg Gaming Group (TSX-V: BRAG) (OTCQX: BRGGF).
Online gambling revenue is expected to account for 20% of gambling revenue in 2020 and will likely take over a larger segment of the market as more US states embrace online gambling. By 2023, a projected 37 states will have legal sports betting, which stands to benefit companies looking to expand into new markets, such as Bragg Gaming Group. The company has already moved into several new European markets this year and is continuing to suss out new opportunities.
Bragg Gaming Group Expands Its Reach
What sets Bragg Gaming Group apart from other companies looking to dominate the massive mobile gambling market is that it specializes in providing turnkey B2B online gaming solutions to online casino operators. Over the last two years, the company has tripled its customer base and added several prominent names to its roster, including Seneca Resorts & Casinos, Kaizen Gaming, 888 Casino, SBTech, and soft2bet. Bragg has also continued to grow its revenue throughout 2020, posting a 44% increase in its Q1 2020 revenue and an impressive 107% increase in revenue in the second quarter.
On November 23, Bragg Gaming Group announced its third quarter results, achieving 72% revenue growth year-over-year and generating Adjusted EBITDA of C$2.8 million in the quarter, as compared to C$300,000 for the same period in the prior year. Adjusted EBITDA margins also significantly increased to 15.7%, up from 2.6% in Q3 2019, due to improved cost control and higher scale.
Moving into 2021, Bragg Gaming Group is looking to seize this opportunity with fast growth by strategically expanding into new markets as they open up legally to online casinos. On December 7, its subsidiary ORYX Gaming announced a multi-jurisdictional distribution deal with international operator Paf to provide its exclusive RGS content across several regulated markets and brands. As per the agreement, ORYX’s content will be made available on Paf’s online casinos in Estonia, Sweden, Spain, Latvia, and Finland. The news came just one week after Bragg announced its entrance into the Swiss market after signing a content deal with leading operator mycasino.ch by Grand Casino Luzern.
Online Gambling Companies Grow Presence in Legal US States
International online gambling platform 888 Holdings (OTC:EIHDF) is another company that has been expanding its reach. On December 2, the company announced that it will be expanding its sports betting services into Indiana, Colorado, and Iowa through various partnerships. Iowa legalized sports betting on professional sports in August 2019. Within the first year, Iowans wagered over $400 million, producing approximately $30 million in revenue for Iowa casinos.
American casino and racetrack operator Penn National Gaming (NASDAQ:PENN) is another company looking to stake a claim in the US online gambling market. The company bought digital media company Barstool Sports in January for $450 million to gain entrance into the lucrative online betting market. In September, Penn National Gaming announced a soft launch of its new Barstool Sportsbook mobile app in Pennsylvania; then in November, the company announced the opening of its first retail-branded Barstool Sportsbook at Ameristar Casino Resort Spa Black Hawk.
International Game Technology PLC (NYSE:IGT) has also been growing its stake in the US gaming market this year. On November 23, the company announced a multi-year agreement with Maverick Gaming. The deal will see IGT’s leading PlaySports platform power retail sports betting at Maverick’s three Colorado-based casinos, as well as interactive sports betting throughout Colorado through Play Maverick Sports.
With more and more states and countries around the world moving towards online gambling legalization, leading online gaming companies like Bragg Gaming Group will likely continue to expand their reach and capture the growing market.
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