iGaming Sector Diversification and Margin Improvement: How Gambling.com Group and Bragg Gaming Are Pioneering High-Growth Strategies

The iGaming sector is undergoing a transformative phase, driven by technological innovation, regulatory shifts, and evolving consumer preferences. Two key players, Gambling.com Group (GAMB) and Bragg Gaming Group (BRAG), are redefining their business models to capitalize on high-margin segments like sports data and proprietary content. This article analyzes their strategic initiatives, financial performance, and long-term positioning in a sector poised for sustained growth.

Gambling.com Group: Leveraging Sports Data for Recurring Revenue and Margin Expansion

Gambling.com Group has emerged as a leader in the sports data and proprietary content space through its aggressive acquisition of Odds Holdings, the parent company of OddsJam and OpticOdds. This $80 million+ deal, finalized in January 2025, has become a cornerstone of the company's strategy to diversify revenue streams and enhance profitability.

Strategic Rationale and Financial Impact

The OddsJam platform, now contributing 24% of total revenue in Q1 2025, delivers real-time odds data to over 300 sportsbooks and consumers, generating a high-margin, sticky subscription model. The platform's infrastructure processes 1 million requests per second and handles multiple terabytes of data daily, solidifying its technological edge.

Financially, the acquisition has already delivered 405% year-on-year revenue growth in the sports data segment to $9.9 million in Q1 2025. This segment now accounts for over 20% of total revenue, with recurring subscription income expected to drive $14.5 million in adjusted EBITDA in 2025. The company's overall adjusted EBITDA margin hit 39% in Q1 2025, up from 42% in Q4 2024, reflecting disciplined cost management and scalable operations.

Geographic and Market Expansion

Gambling.com Group is capitalizing on the U.S. sports betting boom, with legalization in new states like Missouri and Illinois. The company's expanded credit facility—now $165 million—supports organic growth and strategic acquisitions, enabling it to scale its data services and marketing platforms.

Bragg Gaming Group: Focusing on Proprietary Content and AI-Driven Efficiency

Bragg Gaming Group has taken a different but equally compelling approach, prioritizing proprietary content development and AI integration to improve margins and market share. The company's Q2 2025 results highlight a 44% year-on-year increase in proprietary content revenue, now accounting for 14.8% of total revenue.

Content Diversification and Strategic Partnerships

Bragg's in-house studios—Atomic Slot Lab, Wild Streak Gaming, and Indigo Magic—have launched exclusive titles across regulated U.S. markets like New Jersey, Michigan, and Pennsylvania. A key partnership with Fanatics Casino and an exclusive content deal with Hard Rock Digital have strengthened its U.S. footprint. In Brazil, Bragg's investment in RapidPlay and the launch of gamification tools like Big Ticket Bonanza aim to boost player retention.

AI and Cost Optimization

Bragg's “AI-first” strategy, led by EVP Luka Pataky, focuses on reducing time-to-market for new games and enhancing player engagement. The company has already realized €2 million in annualized synergies from cost optimization and integration of acquired studios. While gross profit margins improved to 52.7% in Q2 2025, adjusted EBITDA dipped to €3.5 million due to regulatory pressures in the Netherlands and Brazil. However, management targets a 20% adjusted EBITDA margin in H2 2025.

Comparative Analysis: Strategic Divergence and Financial Outcomes

Metric	Gambling.com Group	Bragg Gaming Group
Revenue Growth (2025)	39% YoY ($40.6M in Q1)	4.9% YoY (€26.1M in Q2)
Adjusted EBITDA	$15.9M (Q1 2025, 56% YoY)	€3.5M (Q2 2025, 13.3% margin)
Margin Focus	Recurring sports data (39% EBITDA margin)	Proprietary content (52.7% gross margin)
Growth Drivers	U.S. sports betting expansion, OddsJam integration	U.S. iGaming, AI, Brazil market entry

Investment Thesis: Which Model Offers Better Long-Term Value?

Gambling.com Group presents a compelling case for investors seeking high-margin, recurring revenue and a clear path to EBITDA growth. Its sports data segment is a cash-flow engine, with OddsJam's technology creating a durable competitive moat. The company's focus on U.S. expansion and credit facility flexibility positions it to outperform in a sector where margin expansion is critical.

Bragg Gaming Group, while facing near-term headwinds in key markets, is pivoting toward AI-driven efficiency and proprietary content differentiation. Its 44% growth in content revenue and strategic partnerships in the U.S. and Brazil suggest long-term potential, though investors must weigh the risks of regulatory volatility and margin compression in emerging markets.

Conclusion: Diversification as a Strategic Imperative

Both Gambling.com Group and Bragg Gaming Group are reshaping the iGaming sector by targeting high-margin segments. Gambling.com's data-centric model offers immediate scalability and margin visibility, while Bragg's content and AI bets prioritize innovation and long-term differentiation. For investors, the choice hinges on risk tolerance: Gambling.com for stability and near-term returns, Bragg for growth in a fragmented, evolving market.

As the iGaming sector matures, companies that balance technological leadership with financial discipline will emerge as winners. Both GAMB and BRAG are on that path—but their distinct strategies reflect the sector's diverse opportunities.