Bragg Gaming To Acquire Spin Games LLC In Strategic US Deal
Author: Joe Kizlauskas
Last Updated: 23rd February 2023
Subject to regulatory approval, Bragg Gaming Group, the multinational B2B gaming technology and content provider and owner of ORYX Gaming, has signed a definitive agreement to acquire Spin Games LLC, a B2B gaming technology and content provider based in Reno, Nevada.
Bragg has agreed to buy Spin in a cash and stock deal for a purchase price of approximately $30 million under the terms of the merger agreement. Spin’s sellers will earn $10 million in cash and $20 million in Bragg common stock, of which $5 million will be issued at closing and the rest for the next three years.
Compelling strategic and financial justification
According to Bragg, the acquisition has a compelling strategic and financial justification and is in line with the company’s previously stated plan to diversify revenue from European markets and expand its US operations to take advantage of the rising US and Canadian online casino markets.
Spin will provide Bragg with immediate technological, product, regulatory, and enforcement know-how unique to the US market, minimising time-to-market and lowering the risk of deployment in the US. Following the closure, Kent Young, the founder and CEO of Spin, will join Bragg as President – Americas and play a key role in the Company’s US business roll-out growth strategy. Young has over 30 years of gaming industry executive experience.
Bragg will gain access to main strategic operator partnerships in the United States as a result of the deal, including BetMGM / Roar Digital, Caesars, FanDuel, Golden Nugget, Hard Rock, DraftKings, TwinSpires, Penn National Gaming, Resorts, Parx, Rush Street Interactive, Unibet, and WynnBet.
Although continuing to grow its US-centric content development, the company plans to use these main operator relationships to cross-sell its existing casino content that is currently live in European markets. Spin’s remote gaming server and casino content are completely licenced and distributed in New Jersey, Pennsylvania, and Michigan, as well as in British Columbia, Canada, where implementation is pending.
Spin and Bragg’s wholly owned subsidiary ORYX Gaming have joined forces to bring an enhanced complete turnkey igaming, sports betting, and player engagement platform to the fast-growing US market.
Richard Carter, the CEO of Bragg, stated: “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. We have seen from the European market that the ability to deliver best-in-class proprietary content alongside a full turnkey igaming and player management platform is key to building a successful B2B online casino technology provider.
“The cornerstone of our future growth strategy will involve bringing best-in-class content in-house during the early innings of the US growth story to position our company for long-term success.”
Support of the rapidly growing US igaming market
Spin CEO Young commented: “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.”
He added: “Since we became one of the first RGS and igaming content companies approved for online gaming in the US, we have grown our footprint in New Jersey, Pennsylvania and Michigan and been approved to operate in British Columbia.
“In addition to strengthening our support of our existing customers and markets, this acquisition will accelerate Spin’s ability to expand our content library, pursue new markets and leverage our technology to support igaming here and in new markets as they open. We are extremely excited to be joining the Bragg team and look forward to a highly successful future together.”