Bragg Gaming's U.S. Play: Content, Tech, and Regulation Fueling Explosive Growth

The U.S. iGaming market is booming, with states like New Jersey, Michigan, and Pennsylvania leading the charge. Amid this growth, Bragg Gaming Group (BRAG) has positioned itself as a key beneficiary of regulatory tailwinds and strategic partnerships. By leveraging its proprietary content, Remote Gaming Server (RGS) technology, and cross-industry collaborations, Bragg is accelerating its expansion into high-growth U.S. markets. This article argues that Bragg's multi-faceted strategy—bolstered by recent deals with Fanatics Casino and Hard Rock Digital—positions the company for outsized revenue growth and market leadership.

The Power of Partnerships: Fanatics and Hard Rock

Bragg's partnership with Fanatics Casino marks a pivotal move in its U.S. growth strategy. The collaboration grants Fanatics access to Bragg's catalog of over 2,900 titles, including proprietary hits like Cai Fu Emperor Ways and Queenie, developed by studios like Atomic Slot Lab and Indigo Magic. Crucially, the games are delivered via Bragg's RGS technology, which integrates seamlessly with Fanatics' platforms (iOS, Android, desktop), ensuring a unified player experience.

The strategic value here lies in cross-selling synergies. Fanatics' strong foothold in sports betting creates a natural audience for its iGaming offerings, and Bragg's content diversifies Fanatics' revenue streams. As Bragg CEO Matevž Mazij noted, this partnership targets the “biggest U.S. iGaming markets,” where regulatory approvals have opened doors to millions of players.

Meanwhile, Bragg's deal with Hard Rock Digital signals its ambition to dominate branded content. The agreement involves co-developing exclusive games for Hard Rock Bet Casino, leveraging the brand's global recognition. This not only boosts Hard Rock's appeal but also deepens Bragg's ties to major operators, ensuring recurring revenue streams.

The Technology Advantage: RGS and Fuze™

At the core of Bragg's strategy is its RGS technology, which acts as a scalable backbone for operators. By licensing RGS to partners like Caesars Entertainment, Bragg enables operators to build custom games using their intellectual property while reducing development costs. For example, Caesars' use of RGS has already yielded hits like Lady Luck Casino Egyptian Magic, driving double-digit revenue growth for Bragg.

Complementing RGS is Fuze™, Bragg's AI-driven player engagement tool. By offering personalized bonuses, free rounds, and recommendations, Fuze™ boosts retention and lifetime value. This combination of technology has already shown results: Bragg's adjusted EBITDA rose 19.7% in Q1 2025, fueled by a record 15.5% of revenue from proprietary content.

Regulatory Tailwinds and Market Penetration

Bragg's growth is further fueled by regulatory approvals in key U.S. states. With licenses in New Jersey, Michigan, Pennsylvania, and Ontario, Bragg is capitalizing on regions with robust demand for online gaming. The company's Q1 2025 U.S. revenue surged 150% year-over-year, a stark contrast to headwinds in markets like the Netherlands.

Crucially, Bragg's Bragg HUB platform aggregates both proprietary and partner content, enabling rapid market entry. This scalability is evident in its plans to expand into Brazil—a fast-growing market where Bragg already holds a significant share—and other regulated jurisdictions.

Investment Thesis: Why BRAG is a Buy

Bragg's combination of strategic partnerships, proprietary tech, and regulatory momentum creates a compelling investment case:
1. Revenue Diversification: Partnerships with Fanatics and Hard Rock reduce reliance on any single market or operator.
2. Margin Expansion: Proprietary content (now 15.5% of revenue) carries higher margins than third-party titles.
3. Scalability: RGS and Fuze™ enable cost-efficient expansion into new markets.
4. Sector Tailwinds: U.S. iGaming is projected to grow at 10-15% annually, with states like West Virginia and California legalizing online gaming.

While risks exist—including regulatory delays and competitive pressures—the company's financial health (operational cash flow up 63.5% in Q1) and aggressive growth roadmap mitigate these concerns.

Conclusion: A Leader in the Making

Bragg Gaming is not just a content provider but a platform play in the iGaming sector. Its RGS technology and strategic partnerships with top operators like Fanatics and Caesars position it to capture a growing share of the U.S. market. With regulatory approvals accelerating and proprietary content driving margin expansion, Bragg is primed for sustained outperformance.

For investors, BRAG represents a rare opportunity to capitalize on the iGaming boom through a well-positioned, technically advanced player. Look for further catalysts in 2025, including new studio partnerships and market entries, to drive valuation upside. Hold for growth.

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