Proactiveinvestors USA & Canada Bragg Gaming Group https://www.proactiveinvestors.com Proactiveinvestors USA & Canada Bragg Gaming Group RSS feed en Wed, 22 May 2019 08:01:33 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - Bragg Gaming Group sees 2018 revenue rise 9.7% and 2019 is off to a great start ]]> https://www.proactiveinvestors.com/companies/stocktube/13202/bragg-gaming-group-sees-2018-revenue-rise-97-and-2019-is-off-to-a-great-start-13202.html Thu, 02 May 2019 11:50:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/13202/bragg-gaming-group-sees-2018-revenue-rise-97-and-2019-is-off-to-a-great-start-13202.html <![CDATA[News - Bragg Gaming CEO wagers on M&A as well as future of US gambling ]]> https://www.proactiveinvestors.com/companies/news/217567/bragg-gaming-ceo-wagers-on-ma-as-well-as-future-of-us-gambling-217567.html Bragg Gaming is a relatively new entrant to the booming gaming sector, having recently debuted on the TSX Venture Exchange in December of 2018.

It still conducts most of its business in Europe and has three core businesses: Oryx, an online gaming technology group; GiveMeSport, a sports-focused media company; and GiveMeBet, a new online sports betting and casino site that aims to draw viewers from GiveMeSport.

In a recent interview, Proactive Investors sat down with Bragg Gaming CEO Dominic Mansour to discuss the gambling company’s latest advances as well as the course it is now looking to chart.

Could you pull the curtain back and tell us a bit about Bragg’s origin story?

Bragg comes out of a business called Breaking Data. But the story goes back further when I met the founders of a site called GiveMeSport about 18 months ago. It’s one of the biggest sports media sites in the world. It’s also the biggest sports media site on Facebook, with 26 million Facebook fans which makes it bigger than ESPN and Fox Sports. We were talking and they were throwing out these numbers about visitors to their site like 26 million Facebook fans and 30 million monthly uniques and there was one number being thrown around which kind of pricked my attention more than anything else. And that was that of all of these people, about 1.1 million are regularly visiting betting sites on a monthly basis and going to GiveMeSport. So I thought OK that’s quite interesting given what I know about the gambling and gaming sector and the challenge of acquiring customers and the cost of acquiring customers. That’s when I thought, this could be something of interest.

Do you have a model in mind for GiveMeSport?

Here in the UK we have a business called Sky Sports owned by Sky – a Rupert Murdoch business. It’s the same thing as ESPN. They have a subscription-based TV channel and a lot of good sports content. They had a captive audience with 8 million monthly subscribers, so they decided to launch Sky Bet. They built that business up over the last 15 years and sold it in the summer of last year to The Stars Group, the owner of PokerStars for just under US $5 billion. Our numbers are actually bigger than theirs. And great, I’d love to build a business for $5 billion, but let’s be realistic here. What we have that they had is a captive audience as well as some fantastic expertise in the management team. Connect those two dots together and you have the opportunity to build a really fantastic business.

Before I met the GiveMeSport guys, I was raising money to buy a business-to-business gaming technology business called Oryx.  As we were ready to close the transaction for Oryx, the opportunity arose to acquire this GiveMeSport business and then I thought the thing to do here is to bolt all of this stuff together. So, we took over the GiveMeSport business. We had the Oryx casino technology as well and great people on our management team. Put that all together and we had all the ingredients to run a listed gaming business, launch our own betting site, so that’s what we did. We launched GiveMeBet. Our business is casino tech, media and our own business-to-consumer sports betting and casino site.

Can you provide a little detail about how Oryx, Bragg’s online casino technology business, works?

The cornerstone of the Oryx business is something called the casino aggregator platform. Casino games are like fast-moving consumer goods. They’re cool one month and they’re not cool the next month and hence change super quickly. In the digital world, we’re able to move faster.

So, put yourselves in the shoes of Mr Green, an Oryx client and one of the largest online casino operators in Europe. They’ll have a guy that runs the casino and a marketing team. And then there are all their tech guys. They’ll discuss the big hot game that everyone’s got. Whether it’s a branded version of Spiderman or The Incredible Hulk or Monopoly. If you don’t have that game, you’re going to lose market share to your competitors, they think. So, the casino manager says I need that game ASAP and the marketing manager goes absolutely. They go to their IT department and say, hey listen, there’s this game and I need you to connect our technology to theirs so we can promote that game on our site. The IT department has to make that integration. Then it all changes. That game becomes less popular and there’s a new one. Now you want me to do Deal or no Deal and so on. And when you’ve got hundreds and hundreds of these games, the IT department in a casino gets stretched whilst they add and manage potentially hundreds of different integrations.

What the folks at Oryx did is they said, we’ll handle the IT side for you. We will integrate every single game studio, every cool game that’s in the market. We will do that integration for you and all you have to do is one simple integration into Oryx. So, the casino’s IT department goes praise the Lord, one integration and my job’s done, Thanks very much. I’m all over that. The marketing team and the casino team then get access to 8,000 games at the click of a finger and if there’s a cool one that hits the market, Oryx just adds it in.

On top of its casino platform, Oryx also has a full-service offering, meaning they have a player account management system. They’ll design and build a casino site or sports betting site. They’ll even manage the customer support and the payment systems, leaving the operator to focus on marketing only.

What’s next?

Part of what we want to do is grow through M&A. We only took over the Breaking Data business in December of last year, so we’re still working a lot of practical things out. But what we want to do is buy businesses that fit into our overall portfolio so that we can leverage them off one another really neatly. Game studios would be a prime target for us. Another business-to-consumer sports betting site or a casino site would also be a good target. We have big ambitions and we’re aggressive. My team and I have operated at the highest level in the past and we have no intention of cruising along at a snail’s pace here.

How much attention has to be paid to regulation in the gambling business?

You cannot even consider success in our sector unless you have an intimate and deep knowledge of the regulatory framework around the world. It moves really really fast. It’s accelerating at the moment. We like regulation because with regulation comes stability. It does mean that we have to write a check to the taxman in whatever jurisdiction. But it gives you structure, and investors like structure. It reduces the risk profile of these businesses. Those are all positive things for us..

While 80% of revenues still come from Europe, does Bragg have ambitions elsewhere?

The US recently regulated sports betting both in casinos and online. So, obviously, that’s a great opportunity for us and an area that we are exploring aggressively and it’s definitely one of our core focuses for future expansion.

The thing that’s going to happen to our sector is the US. That’s the single biggest thing. It’s the number one economy in the world with a demographic that has the highest propensity to gamble in the world. 

The responses in this Q&A were lightly edited.

 

 

]]>
Fri, 29 Mar 2019 13:59:00 -0400 https://www.proactiveinvestors.com/companies/news/217567/bragg-gaming-ceo-wagers-on-ma-as-well-as-future-of-us-gambling-217567.html
<![CDATA[Media files - Bragg Gaming aims to be player in the new-gaming sector with board appointments ]]> https://www.proactiveinvestors.com/companies/stocktube/12661/bragg-gaming-aims-to-be-player-in-the-new-gaming-sector-with-board-appointments-12661.html Wed, 20 Mar 2019 11:28:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/12661/bragg-gaming-aims-to-be-player-in-the-new-gaming-sector-with-board-appointments-12661.html <![CDATA[News - Bragg Gaming to distribute 27.05M units in connection with private placement ]]> https://www.proactiveinvestors.com/companies/news/216476/bragg-gaming-to-distribute-2705m-units-in-connection-with-private-placement-216476.html Bragg Gaming Group Inc (TSXV:BRAG) announced Thursday that it has received the green light to distribute 27,058,802 units from securities regulatory authorities in the provinces of British Columbia, Alberta and Ontario.

In a statement, the company said it had filed a short form prospectus in the three provinces and obtained a receipt from them, qualifying the distribution of the units, which are issuable on the exercise of 27,058,802 equity special warrants previously issued in December last year in a private placement.

Each unit is comprised of one common share of the company and one common share purchase warrant, with each warrant exercisable as a common share at a price of $0.76 per share at any time on or before November 29, 2020.

DEEP DIVE: Bragg Gaming moves chips to wager on US and sports betting

The prospectus also notes the distribution of 1,601,784 compensation options issuable upon exercise of 1,601,784 special warrant compensation options issued to Eight Capital, Canaccord Genuity Corp and Haywood Securities Inc as partial consideration for their services rendered in connection with the offering. Each compensation option is exercisable into a unit at an exercise price of $0.51 per unit until November 29, 2020.

The Bragg Gaming Group is a reincarnation of a gambling company called Breaking Data and debuted on the TSX Venture Exchange under the current name Bragg in December 2018.

It has three core businesses: Oryx, an online casino technology group; GiveMeSport, a sports-focused media company and Facebook’s (NASDAQ:FB) largest sports publisher with more than 26 million fans; as well as GiveMeBet, a new online sports betting brand and casino site that aims to draw viewers from GiveMeSport.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

]]>
Thu, 14 Mar 2019 07:51:00 -0400 https://www.proactiveinvestors.com/companies/news/216476/bragg-gaming-to-distribute-2705m-units-in-connection-with-private-placement-216476.html
<![CDATA[News - Bragg Gaming moves chips to wager on US and sports betting ]]> https://www.proactiveinvestors.com/companies/news/216324/bragg-gaming-moves-chips-to-wager-on-us-and-sports-betting-216324.html Bragg Gaming Group (TSXV:BRAG) is a reincarnation of a gambling company called Breaking Data and debuted on the TSX Venture Exchange under the current name Bragg in December 2018.

It has three core businesses: Oryx, an online casino technology group; GiveMeSport, a sports-focused media company and Facebook’s (NASDAQ:FB) largest sports publisher with more than 26 million fans; as well as GiveMeBet, a new online sports betting brand and casino site that aims to draw viewers from GiveMeSport.

CEO Dominic Mansour says that while 80% of its revenue still comes from Europe, he and his team are eager to expand to the US where last year the Supreme Court struck down a 1992 law that banned commercial sports betting.  The ruling by the country’s highest court cracks the door open for US states to legalize and regulate wagering on sports, which presents a business opportunity. And yearly gross gambling revenue in the US is expected to hit a range of US$3.1 billion to $5.2 billion by 2023, according to analysts.

“The US is definitely going in the right direction,” says Mansour.

The folks at the company’s top would also like to pursue a shrewd acquisition strategy that brings on board businesses that align well with its existing ones such as sports betting and casino sites.

“What we want to do is buy businesses that fit into our overall portfolio so that we can leverage them off one another really neatly,” adds Monsour.

Currently, the life-blood of Bragg’s operations is Oryx, which provides online casino operators with the technology they need to run their games. The cornerstone of the Oryx business is its casino aggregator platform, which offers casinos access to a portfolio of over 5,000 game titles using one shared account.

Boasting clients ranging from Jackpotjoy PLC to GVC Holdings, which owns Ladbrokes Coral Group PLC, Oryx is licensed to provide its services in Malta, Spain, Romania, Colombia, Croatia, Serbia, Gibraltar, the UK and Slovenia.

Oryx also offers consulting services and assists clients with hosting and security as well as payments and transactions as well as risk and fraud management.

How is it doing?

It’s too early to see a full picture of Bragg’s finances as the company hasn’t posted earnings under its name yet.  When its results are released, Mansour forecasts that a few eyebrows will be raised about how different Bragg is to the old Breaking Data business.

If pro-forma historical financials are any guide, the company’s sales figures will look promising. In the six months until June of 2018, Oryx’s revenue jumped to US$9.5 million from $1.85 million over the same period in 2017. The Breaking Data business, which then included an unprofitable AI (artificial intelligence) division, meanwhile, generated revenue of $5.32 million in the six months until June of 2018, up from $2.6 million over the corresponding time in 2017.

The vision of Bragg Gaming is to shift away from Breaking Data’s focus on tech and AI to gaming and media.

The GiveMeSport site is being repositioned to make sure it grows its audience with an interest in the different gaming sectors – starting with sports betting.

“GiveMeSport has a bigger following on Facebook than ESPN and Sky Sports,” says Mansour. “We plan to use this as a platform to grow into sports betting, initially in the UK, and further into the US.”

Also on the agenda is refashioning GiveMeBet, its online sport betting and casino arm, which will be formed in the mold of Sky Betting and Gaming.

“What we have is a captive audience as well as some fantastic expertise in the management team. Connect those two dots together and you have the opportunity to build a really fantastic business,” says Mansour.

Similar to the informal tie-up between GiveMeSport and GiveMeBet, Sky Bet attracted much of its audience from Sky Sports, Rupert Murdoch’s sports channel. The business was eventually sold to the Stars Group, parent of PokerStars, in a cash and stock transaction valued at US$4.7 billion.

What the boss says

“You cannot even consider success in our sector unless you have an intimate and deep knowledge of the regulatory framework around the world. It moves really really fast. It’s accelerating at the moment. We like regulation because with regulation comes stability,” says Mansour. “It does mean we have to write a check to the taxman in whatever jurisdiction. But it gives you structure and investors like structure. It reduces the risk profile of these businesses. Those are all positive things for us.”

]]>
Tue, 12 Mar 2019 16:08:00 -0400 https://www.proactiveinvestors.com/companies/news/216324/bragg-gaming-moves-chips-to-wager-on-us-and-sports-betting-216324.html
<![CDATA[Media files - BRAGG Gaming unit ORYX Gaming partners with online casino Mr Green ]]> https://www.proactiveinvestors.com/companies/stocktube/12396/bragg-gaming-unit-oryx-gaming-partners-with-online-casino-mr-green-12396.html Thu, 28 Feb 2019 13:33:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/12396/bragg-gaming-unit-oryx-gaming-partners-with-online-casino-mr-green-12396.html <![CDATA[News - BRAGG Gaming subsidiary ORYX Gaming unveils new partnership with online casino Mr Green ]]> https://www.proactiveinvestors.com/companies/news/214904/bragg-gaming-subsidiary-oryx-gaming-unveils-new-partnership-with-online-casino-mr-green-214904.html ORYX Gaming, a member of the Bragg Gaming Group (CVE:BRAG), told investors Tuesday that its partnership with online casino Mr Green has gone live.

As part of the content deal, ORYX has introduced a library of casino titles onto the platform, including premium games from Gamomat, Kalamba, Golden Hero and Givme Games as well as a portfolio of Aggregator games.

“Adding our casino content to the Mr Green platform is a major step for ORYX and we expect big results from the deal as we move through 2019,” said Matevz Mazij, CEO of ORYX Gaming, in a statement. “I strongly believe our portfolio of games is a perfect match with its player base and we look forward to a successful partnership."

Mr Green is a top gambling company that offers an online casino, Sportsbook, live casino play, bingo and Keno. The company is licensed in the UK, Sweden, Denmark, Malta and Italy and also holds a sportsbook license in Ireland. At the start of the year, Mr Green was acquired by William Hill plc, the betting and gaming company.

ORYX was acquired by Bragg Gaming at the close of last year. Its platform plays host to a mix of its own games as well as third-party games for slots, lottery, virtual sports, content supplied by live dealers, casino, virtual sports and instant games.

Bragg Gaming Group specializes in the emerging area of legalized US sports betting and the e-sports industry.

Bragg shares slipped slightly to hit C$0.74 in early afternoon trade on Tuesday.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

]]>
Tue, 19 Feb 2019 12:14:00 -0500 https://www.proactiveinvestors.com/companies/news/214904/bragg-gaming-subsidiary-oryx-gaming-unveils-new-partnership-with-online-casino-mr-green-214904.html
<![CDATA[Media files - Bragg Gaming Group subsidiary ORYX Gaming launches content on Genesis Casino platform ]]> https://www.proactiveinvestors.com/companies/stocktube/11884/bragg-gaming-group-subsidiary-oryx-gaming-launches-content-on-genesis-casino-platform-11884.html Fri, 18 Jan 2019 09:30:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/11884/bragg-gaming-group-subsidiary-oryx-gaming-launches-content-on-genesis-casino-platform-11884.html