Bragg Gaming Group has entered the Delaware online gaming market and will add West Virginia to its U.S. footprint next year.
Speaking on the Toronto-based gaming provider’s Q3 earnings call on Thursday, CEO Matevž Mazij told investors that the company continues to cast the net wider in the U.S.
“We have seen continued growth in distribution of our online casino content in North America since the beginning of the third quarter, expanding our relationship with partners in six jurisdictions with new content launches,” Mazij said. “We launched with Caesars in Pennsylvania and Ontario in the third quarter as well as launching with FanDuel in New Jersey during the same period.
“I am pleased to announce that post quarter end, we launched in Delaware, our fifth U.S. state with our partner Rush Street Interactive. This gives us 100% of the Delaware market, as they are the only casino operator in the state. We are on track to launch our sixth U.S. online casino state, West Virginia, in the second quarter of next year.”
Mazij added that the company’s expanding distribution network in North America is helping to drive strong growth in exclusive and proprietary content revenue. Global revenues from proprietary content were up 40% year-over-year in Q3 year-over-year.
Bragg supplies operators with games from its proprietary content studios including Wild Streak Gaming, Atomic Slot Lab and Indigo Magic.
Bragg flexes muscles in US
Bragg appointed a new Chief Commercial Officer, Neill Whyte, and an interim Chief Financial Officer, ex-Bally’s SVP Robbie Bressler, earlier this year and Mazij said it is the strengthened executive team that has “already begun to deliver the kind of results that will grow Bragg for the long term.”
Those results have also included the extension of the company’s existing partnership with BetMGM into Pennsylvania and further reach with bet365 into New Jersey. It also struck an international distribution deal with Light & Wonder in April and agreed a deal in August to integrate Kero Gaming’s full suite of sports betting options into its aggregation platform.
Bragg reported on Thursday record Q3 revenue, up 16% year-over-year. Gross profit rose 18% year-over-year as well and adjusted EBITDA ticked up 7%. Operating income improved but remains at a small loss.
“We have more requests and demand for bespoke and customized games from existing operators and operators that are coming into the market,” Mazij added. “There is lots of room for growth as we look at some regional markets in the U.S. and Canada. We’re just starting in Delaware, West Virginia, and we have more coming online with Pennsylvania and Ontario and opportunities in British Columbia.”
Bragg not for sale after months-long review
The upswing has factored into Bragg’s decision not to proceed with a sale or any other decisive strategic move after a months-long review first launched in March, before all of its recent progress.
Mazij told investors that the board “unanimously determined that none of the proposals received reflect the company’s intrinsic value or current and projected financial performance.” The board therefore elected to conclude its review and disband the committee.
The company added that while the process has ended, the board will “continue to be open and consider all opportunities for enhancing shareholder value.”
