TORONTO - Bragg Gaming Group (NASDAQ: BRAG, TSX: BRAG), a provider of iGaming technology and content, has announced the launch of its full turnkey solution for Czech casino operator Kings Entertainment A.S., under the brand Kingsbet. This move marks Bragg's second Player Account Management (PAM) and turnkey solution partnership in the Czech Republic.
Bragg's agreement with Kings Entertainment will see the integration of player management technology, exclusive content from Bragg studios, and a range of aggregated online casino content through the Bragg HUB. Additionally, a fully localized sportsbook will be incorporated in collaboration with Altenar.
The full turnkey solution provided by Bragg includes the FUZE™ player engagement toolset, designed to enhance acquisition, conversion, and retention for both casino and sportsbook operations. Kingsbet will also receive managed marketing and operational services from Bragg.
This partnership comes as the Czech online casino market is expected to reach approximately $1 billion in gross win in 2024, reflecting a 30% year-over-year growth from 2023. The recent regulatory changes, particularly the inclusion of live dealer games and a new streamlined licensing regime effective January 2024, have opened up new opportunities in the market.
Kings Entertainment CEO David Vaněk expressed pride in the collaboration, noting Kingsbet's compliance with the new Gambling Act and its plans to introduce a Live casino product by year-end. Bragg's platform is anticipated to provide Kingsbet with competitive tools for their entry into the Czech online market.
Kings Entertainment, established in 2003, commands a 40% share of the Czech land-based casino market and is recognized for its Kings Rozvadov property, the largest poker arena in Europe.
The information for this article is based on a press release statement.
In other recent news, Bragg Gaming Group has seen significant developments. The company reported mixed Q1 results, with a modest revenue increase of 4.2%, reaching EUR 23.8 million, a record for the company's first quarter. However, Bragg experienced a decrease in gross profit and adjusted EBITDA, with gross profit at EUR 11.4 million and adjusted EBITDA at EUR 3.4 million.
In addition to financial updates, Bragg Gaming Group announced the appointment of Robbie Bressler as the new interim Chief Financial Officer. Bressler, who brings extensive experience in finance within the gaming industry, is set to begin his role on July 1, 2024.
The company is also actively exploring strategic alternatives such as mergers, acquisitions, or additional investment. As part of its expansion plans, Bragg is entering new markets, including Peru, Delaware, France, and Finland, and is focusing on maximizing shareholder value.
InvestingPro Insights
As Bragg Gaming Group (NASDAQ: BRAG, TSX: BRAG) expands its footprint in the Czech Republic's burgeoning online casino market, investors may be curious about the company's financial health and market performance. According to InvestingPro, Bragg Gaming Group boasts a notable strength: it holds more cash than debt on its balance sheet, which could provide the company with the flexibility to invest in growth opportunities like the partnership with Kings Entertainment.
However, it's important to note that analysts do not expect Bragg to be profitable this year, and the stock has experienced a decline over the past month with a -13.57% one-month price total return as of mid-2024. Despite this short-term volatility, the company has achieved a high return over the last year, with a 74.76% one-year price total return, reflecting investor optimism about its long-term prospects.
On the valuation front, Bragg is trading at a high EBITDA valuation multiple, which may suggest that the market is pricing in future growth expectations. With a market capitalization of $132.9 million USD and a revenue growth of 7.07% in the last twelve months as of Q1 2024, the company's financial metrics provide a mixed picture.
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