Igaming technology provider Bragg Gaming has made its first foray into the United States igaming market through the acquisition of Spin Games, a Nevada-based B2B gaming content provider. The company will carry out a cash-and-stock transaction to cover the acquisition cost, which is set at $30 million by the company.
The transaction will be carried with Bragg Gaming paying $10 million in cash and issuing $20 million worth of common shares. The first round of shares will be issued on closing of the deal, worth $5 million, with the remaining $15 million worth of shares being issued over the next three years.
Bragg Gaming’s Objective in the United States’ Market
Bragg Gaming is long-overdue for a market entry in the United States, which now runs close to 20 regulated gaming jurisdictions, mostly through sports betting operations. Bragg Gaming is preparing to start building its portfolio in North America, where operations are only just getting started and where it can benefit from the demand for quality igaming platforms and products.
As part of the deal, Bragg Gaming will bring Spin Gaming’s founder and CEO Kent Young as an executive. Young will serve as Bragg’s president for the Americas and will be tasked with pivoting the company’s expansion strategy in the market as the US landscape continues to develop rapidly.
Bragg will also seek to further consolidate its assets by integrating Spin with Oryx Gaming, another subsidiary of Bragg’s. Commenting on these developments, Bragg CEOO Richard Carter had this to say:
“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. This transaction lays a strong foundation for our strategy of building a tier one vertically integrated igaming business in the US.”
Thanks to this partnership, Bragg will be able to gain access to flagship companies in the US gaming market, including FanDuel, Caesars, DraftKings and BetMGM. While these companies have been mostly expanding their clout in sports betting, igaming is now slowly gaining momentum in jurisdictions where interactive sports have been introduced.
Bragg’s now-president for the Americas, Young, had this to add:
“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.”
Bragg promoted Richard Carter to CEO in March in a bid to pivot the company’s strategy and growth that will now encompass new forays into the North American market. Bragg’s footprint continues to grow as the United States is focusing on reaching its full igaming potential over the next decade.
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