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The gaming industry already brings in more money than North American sports and movies combined, but it’s not stopping there. The booming gaming market, which is currently valued at $173 billion, is expected to top $200 billion in revenue by 2023 and to nearly double by 2027. Naturally, the high-profit margins seen in recent years have increased the competition and has led to high-profile acquisitions as bigger players try to retain market share. As the gaming industry continues on its upward trajectory, companies like Bragg Gaming Group (NASDAQ:BRAG) (TSX:BRAG), International Game Technology PLC. (NYSE:IGT), Microsoft (NASDAQ:MSFT), Electronic Arts (NASDAQ:EA), and Take-Two Interactive (NASDAQ:TTWO) are focused on solidifying their positions and expanding into new markets.
Global gaming technology and content group Bragg Gaming Group (NASDAQ:BRAG) (TSX:BRAG) expects multi-year growth due to the expansion of its platform and its ongoing iGaming content. Bragg‘s new market strategy is also expected to contribute to growth.
The global gaming technology and content specialist fourth-quarter revenue increased by 14.4% to US$17.5 million while adjusted EBITDA grew 22.2% to US$1.7 million. For FY 2021, Bragg revenue came in at US$64.7 million and adjusted EBITDA was US$8 million, an increase of 25.6% and 29.8%, respectively, from the prior-year period.
The company reiterated its full-year 2022 outlook for expected revenue of US$78-82 million and adjusted EBITDA of US$10.5-11.7 million. The midpoints of those ranges represent year-over-year growth of 20% and 39%, respectively.
Bragg‘s current total addressable market is approximately US$13.5 billion. The company expects it to grow further to over US$21 billion by the end of 2022, reflecting Bragg‘s planned entry into the United States and Canada as well as other regulated European markets this year.
“Our operating momentum has continued in the early months of 2022. We also continue to make progress on closing our acquisition of Spin Games as Bragg has completed all of its regulatory requirements,” Bragg Chief Strategy Officer Yaniv Spielberg said. “We are now awaiting final review by the sole remaining regulatory body which is expected to be complete in the next few months. Importantly, we have made substantial progress on the integration of the Spin Games technology platform with our ORYX platform and have already submitted the integrations for certification by various approved U.S. gaming laboratories.”
“As such, once we receive the remaining required regulatory approval to complete this acquisition, we expect to be able to introduce our iGaming content to players in a number of U.S. states very quickly. Importantly, the pace of U.S. deployments will benefit from Spin Games’ existing relationships with more than 30 U.S. iGaming operators,” Spielberg added.
On March 8, Bragg announced that it is one of the first iGaming providers to be licensed by the AGCO, the regulatory body for Ontario’s iGaming and sports betting regulated market. The license allows Bragg to offer its player account management (PAM) platform, iGaming content and managed services to local iGaming and sportsbook operators. Canada’s iCasino and Online Sports Betting market is valued at over US$2 billion and many expect Ontario to become one of the largest iGaming markets in North America when the market opens on April 4.
Bragg is also continuing to expand its presence in Europe, recently adding Spain and the Czech Republic to its growing roster. Bragg’s popular content is also available on regulated markets in Switzerland, Germany, Greece, the Netherlands, and the United Kingdom.
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