Gambling technology firm Bragg Gaming Group is set to acquire Reno, Nevada-based technology and iGaming content provider Spin Games in a deal that will strengthen the former’s US footprint and help it grow in that lucrative space.
Under the terms of a tie-up agreement between the two companies, Bragg would purchase Spin Games in a cash and stock transaction for a total purchase price of $30 million.
The deal will see the sellers of Spin Games receive $10 million in cash and $20 million in common Bragg shares, of which $5 million worth in common shares will be issued upon the transaction’s closure and the balance would be issued over the next three years.
The tie-up is subject to approval from Nevada gambling regulators and other customary closing conditions and is expected to be finalized in the fourth quarter of the year.
Spin Games specializes in the development of proprietary online casino games that are crafted in in-house studios in North America and India. The company also manages the proprietary ROC remote gaming service and is licensed to distribute iGaming titles from top-tier third-party providers.
Its products are integrated with all major US providers of online gambling services, including BetMGM, Caesars, FanDuel, Golden Nugget, Hard Rock, TwinSpires, Penn National Gaming, DraftKings, WynnBET, Parx, Rush Street Interactive, and more.
Spin Games holds licenses and is live in New Jersey, Pennsylvania, and Michigan and is licensed and working on deployment in Canada’s British Columbia.
US Expansion Opportunities
The transaction will create multiple US expansion opportunities for Bragg and its online casino content provider ORYX Gaming. Through the purchase of Spin Games, the group will gain access to its relationships with the above-listed US-facing online gambling operators.
Bragg said it plans to leverage these relationships to cross-sell the existing ORYX digital casino content that is currently available in multiple European markets, while also continuing to craft US-focused games and related iGaming products.
Spin Games and ORYX’s combined offering is set to position the enlarged group to deliver enhanced full turnkey iGaming, sports betting, and player engagement solutions into the fast-expanding US gambling market.
Bragg said that the initial planning of technical integrations between Spin Games and ORYX has begun and that these integrations will deliver the benefits of ORYX’s advanced Player Engagement Platform with Spin Games’ “technology, local market know-how and US operator relationships.”
In addition, the company said the transaction will deepen its global development resources with Spin Games’ existing game development center in Chennai, India.
Spin Games’ founder and CEO Kent Young, who boasts more than three decades of experience in the gaming sector, has immediately joined Bragg as the group’s President – Americas. Mr. Young is set to play a crucial role in the enlarged company’s US market growth strategy.
Source: Bragg Gaming Accelerates Entry into the US iGaming Market, by acquiring Nevada-Based Spin Games, ORYX Gaming Newsroom, May 12, 2021