Latest News
Liberalization of Finnish Gambling Market Soon A Reality
Foreign gambling companies are now preparing with greater confidence for the liberalization of the Finnish gambling market. A new coalition that is supposed to be lobbying for the liberalization includes seven foreign gambling companies with strong digital businesses in Europe and around the world.
The recently launched Gambling Industry Association’s purpose is to promote the introduction of a responsible and sustainable licensing system in the Finnish gaming market.
The founding members are the following gambling companies: Betsson, ComeOn Group, LeoVegas, Kindred Group, William Hill, Entain and Flutter.
According to the Helsingin Sanomat article, Kuismanen, who was elected CEO of the Gambling Industry Association, is currently working as Chief Economist of the Finnish Entrepreneurs. He will start his new job as early as mid-January 2023. Prior to that, Kuismanen has worked at the European Central Bank and the Ministry of Finance.
What will his role be then? Kuismanen will promote the views of the companies he represents at a time when the new Finnish government is most likely to consider dismantling the Veikkaus monopoly system. In the future, the gaming license system could therefore also be a reality in this Nordic country, that until now has relied on a monopoly.
In a press release from the Finnish Gaming Industry Association, Kuismanen says that Finland needs a reliable licensing system that operates according to common rules and legislation.
Veikkaus Has Already Shown Green Light
Veikkaus, the Finnish gambling monopoly, itself has already taken the view that the monopoly could be at least partially dismantled. You can read more here. Veikkaus’ own view therefore supports the licensing model. This is easy to understand, given that the company’s share of the total market has fallen to 50%. That is a huge amount of money that is constantly flowing abroad.
The licensing model is an excellent common sense solution for Finland, as foreign gambling companies would then have to obtain a separate license for their operations in Finland. This means that taxes would be paid in Finland, but at the same time the company would be able to market itself visibly and would have to operate under the supervision of the authorities.
If the reforms are adopted and the Finnish gambling market becomes open, all physical gaming machines and, for example, the lottery would remain the exclusive property of Veikkaus. Betting and other digital games, on the other hand, would be made available to players by dozens of different companies.
What Does This All Mean?
Reforms to gambling laws are more than welcome in Finland. The system is exceptionally outdated by European and even global standards and no longer reflects today’s notion of a market economy.
Majority of Finnish gaming professionals have long hoped that the gambling market would be liberalized in Finland too. At the moment, half of all money gambled is already going directly to foreign gambling companies. After reform, Finland would receive considerably more tax revenue than it does at present, and the casinos could also be regulated in the way the government wants.
Veikkaus Expanding Its Business Opportunities: Fennica Gaming
Veikkaus was given the opportunity to expand its business from B2C betting and gaming in the domestic market in Finland with the introduction of the Lotteries Act earlier this year. Indeed, a new Lotteries Act was passed in Finland in 2021, which therefore enabled Veikkaus to expand this new business and launch international B2B operations. Not many citizens knew anything about this and a Veikkaus subsidiary was quietly set up.
The new division of the Finnish state-backed betting monopoly will offer international gaming services and products to corporate customers in various areas of betting and gaming.
After long and thorough preparations, the new business was launched very quickly. Fennica was more than enthusiastic about the new business, as it marked the beginning of a completely new era in the history of Finnish gambling. The new company will enable Veikkaus and Fennica to commercialize gambling talent, of which there is plenty in Finland
Fennica Gaming has already signed its first contract with the Lotteries Entertainment Innovation Alliance. This is a joint venture set up by Veikkaus last year, working with Danske Lotteri Spil from Denmark, Française des Jeux from France and Norsk Tipping from Norway.
The Fennica Gaming casino company is helping Norsk Tipping to build an entirely new gaming portfolio in the entertainment category, called Yezz. The idea is to be stylish, innovative and responsible at the same time.
Fennica Gaming Casino Company Focuses on International Market
As part of Veikkaus’ international B2B division, Fennica Gaming offers gaming services and products worldwide, and the two above-mentioned will combine their product portfolio.
The supplier agreements came about as Veikkaus, a Finnish state-backed operator, reached an agreement between its new subsidiary and Lotteries Entertainment Innovation Alliance.
All of Veikkaus’s activities under the surface seem to us to indicate quite clearly that its monopoly position is gradually being abandoned.
Sector And Background Information
The trade press registers show that Fennica Gaming is active in the design and manufacture of software.
The business description states that its business is to sell, rent and develop games and software related to gambling, lotteries and entertainment games.
Fennica Gaming’s website still provides very little information about the company’s activities and products. This is, of course, understandable as it is basically a completely new player in the industry. This is also reflected on the site, as the company claims to have considerable experience in gambling and its multi-channel development.
Fennica Gaming is an independent provider of gaming solutions and services, born out of the extensive heritage of the industry. The backing company Veikkaus is a well-known gaming operator with nine decades of successful experience in the gaming industry.
Latest News
Bragg Gaming Group Announces Record Third Quarter 2024 Revenue of Eur 26.2 Million (USD 29.3 Million)
Bragg Gaming Group, a global B2B content-driven iGaming technology provider, reported record revenue for the third quarter of 2024.
Summary of 3Q24 Financial and Operational Highlights
| Euros (millions)(1) | 3Q24 | 3Q23 | Change |
| Revenue | € 26.2 | € 22.6 | 15.9 % |
| Gross profit | € 14.0 | € 11.9 | 18.1 % |
| Gross profit margin | 53.5 % | 52.5 % | 99 bps |
| Adjusted EBITDA(2) | € 4.1 | € 3.8 | 7.1 % |
| Adjusted EBITDA margin | 15.6 % | 16.9 % | (129) bps |
| Operating Income (Loss) | € (0.4) | € (2.1) | (81.0) % |
(1) Bragg’s reporting currency is Euros. The exchange rate provided is EUR 1.00 = USD 1.12. Due to fluctuating currency exchange rates, this reference rate is provided for convenience only.
(2) “Adjusted EBITDA” is a non-IFRS measure. For important information on the Company’s non-IFRS measures, see “Non-IFRS Financial Measures” below.
Chief Executive Officer Commentary
Matevž Mazij, Chief Executive Officer for Bragg, commented, “The third quarter marked another period of strong growth and record results for Bragg. Revenue grew 16% year-over-year, gross profit increased 18%, and Adjusted EBITDA rose 7%. In the U.S., strong third quarter revenue gains from content distribution helped drive a 40% global increase in proprietary online content revenue year-over-year.
“Additionally, we announced today that the Board of Directors has unanimously decided to conclude its review of strategic alternatives for Bragg. After extensive evaluation and deliberation, the Board determined that the ongoing execution of the Company’s strategic plan is the best way to maximize value for shareholders at this time.
“Since stepping in as Chairman 16 months ago and then as CEO 14 months ago, we’ve transformed our executive team, restructured commercial operations, and sharpened our sales strategy with a targeted, jurisdictional approach. These decisive actions position us to drive growth and capture market opportunities with greater precision and impact. Under new leadership, we’ve built a strong pipeline of tier 1 opportunities across key markets and key products, positioning Bragg for accelerated top- and bottom-line growth.
“With the strategic review process now complete, Bragg is now fully focused on commercialization and unlocking profitable growth, without the need for significant new investment in product development. Our decade-long investments in technology and talent, combined with a robust leadership team, have built a scalable platform that uniquely positions us for aggressive growth in 2025 and beyond. With significant operating leverage now within reach, we’re poised for an exciting, high-growth, and profitable future.”
Third Quarter 2024 and Recent Business Highlights
- Launched its newest games and Remote Gaming Server (RGS) technology with Caesars Digital in Pennsylvania and Ontario. The launch marked the expansion of Bragg’s existing partnership with Caesars Digital, following earlier launches in New Jersey and Michigan respectively, doubling the number of states/provinces in which Bragg content is offered on Caesars Palace Online Casino and Caesars Sportsbook & Casino.
- Launched its newest games and RGS technology with FanDuel in New Jersey, adding to its existing distribution with the leading North American operator in Michigan, Pennsylvania, Connecticut and Ontario
- Post-quarter end, the Company additionally launched its newest games and RGS technology with bet365 in New Jersey, following on from its second quarter launch in Pennsylvania, and an earlier launch in Ontario with the major global iGaming operator
- Launched HardRockCasino.nl in the Dutch market, supplying its cutting-edge player account management (PAM) software to the brand. The agreement is Bragg’s 6th PAM customer in the Netherlands, reinforcing Bragg’s status as the leading technology and content supplier in the Dutch market
- Launched the Kambi sportsbook on 711.nl, adding an additional revenue-generating product stream to a key PAM customer in the Netherlands
- Management is pleased to announce the appointment of Robbie Bressler to CFO of Bragg, effective immediately. Robbie had been serving as Bragg’s interim CFO since July 1, 2024.
Additional September 30, 2024 Key Financial Metrics
- For the nine-month period ended September 30, 2024, Cash flow generated from operations was EUR 8.4 million (USD 9.4 million), compared to EUR 6.2 million (USD 6.9 million) for the nine-month period ended September 30, 2023.
- Cash and cash equivalents as of September 30, 2024 was EUR 11.6 million (USD 13.0 million) and net working capital, excluding deferred consideration, loans payable, and convertible debt, was EUR 11.3 million (USD 12.7 million)
Strategic Alternatives Process Concluded
The Bragg Board announced the strategic alternatives process in March 2024 with the formation of a Special Committee, comprised solely of independent members of the Board. The Committee, together with its advisors Oakvale Capital LLP and Blake, Cassels & Graydon LLP, evaluated a wide range of strategic alternatives for maximizing shareholder value including a potential sale or merger of the Company. Bragg solicited interest from a significant number of potential counterparties and received multiple non-binding proposals.
After careful consideration, the Board, on recommendation from the special committee, unanimously determined that none of the proposals received reflect the Company’s intrinsic value or current and projected financial performance, and therefore elected to conclude its review and disband the Special Committee.
Don Robertson, independent Board member and Chair of the Special Committee, said, “After a comprehensive and exhaustive process, the Committee recommended, and the Board unanimously agreed, that continuing to execute Bragg’s strategic plan as an independent public company is the best approach for maximizing shareholder value. Although the process has now concluded, Bragg’s Board will continue to be open to and consider all opportunities for enhancing shareholder value.”
“Over the past year, our financial performance, cashflow generation and revenue outlook have significantly improved. We remain extremely confident about our business plan, operating strategy, and financial prospects” said Matevž Mazij, Chairman and CEO of Bragg.
Reiterates Full Year 2024 Guidance and 2025 Outlook
Bragg reiterates its 2024 full year revenue guidance range of EUR 102.0-109.0 million (USD 114.2-122.1 million) and its full year Adjusted EBITDA range of EUR 15.2-18.5 million (USD 17.0-20.7 million), noting that the Company is currently tracking to the lower end of guidance.
Bragg is actively advancing a robust pipeline of opportunities that is anticipated to drive strong momentum as we enter 2025. The outlook for 2025 remains positive, with expectations of sustained double-digit top line growth, expanding bottom line margins, and increased operational leverage, further strengthening Bragg’s position in the market. The preceding guidance and outlook constitute forward-looking information within the meaning of applicable securities laws, and is based on a number of assumptions and subject to a number of risks.
BetMGM, a leading sports betting and iGaming operator, announced an extension of its partnership with the Vegas Golden Knights through the 2026-27 season. As part of the agreement, BetMGM will continue as an Official Betting Partner of the Vegas Golden Knights with prominent signage on the Knight Tron and throughout T-Mobile Arena as well as co-branded content and exclusive promotions. The partnership also features multiple fan engagement opportunities including watch parties and Toshiba Plaza activations.
“BetMGM is proud to continue our partnership with the Vegas Golden Knights, giving us the opportunity to create memorable moments alongside one of the world’s most passionate hockey fan bases. Las Vegas is BetMGM’s hometown and an integral part of our DNA, so the Golden Knights are a natural fit for our brand.” – Matt Prevost – BetMGM, Chief Revenue Officer.
Throughout the season, BetMGM will host watch parties featuring team mascots at various MGM Resorts destinations. The operator also will plan activations in Toshiba Plaza during select Golden Knights home games where fans can begin the BetMGM mobile app registration process for the chance to win prizes.
“BetMGM is a long-standing partner with the Golden Knights and a brand synonymous with this great city,” said Vegas Golden Knights President and CEO Kerry Bubolz. “We look forward to continue working together on events and activations that we know entertain our fans.”
Lance Evans, SVP Sports and Sponsorships, MGM Resorts, said, “The Vegas Golden Knights play a core role in the Las Vegas sports and entertainment experience and it’s a privilege to welcome both local and visiting fans to our properties before, during and after games. Together with BetMGM, we look forward to co-hosting events that will allow guests to engage with their favorite teams in new and exciting ways.”
BetMGM users can take advantage of the robust offering of prop markets for Golden Knights games this season, frequent in-app odds boosts and the interactive same game parlay betting feature. New BetMGM customers who download the BetMGM app and verify at one of BetMGM’s nine retail sportsbooks within walking distance of T-Mobile Arena will receive a first bet offer of up to $250 paid back in bonus bets if their first bet loses (offer only available in Nevada; bonus bets are non-withdrawable and expire in seven days.) Through the recently launched single account and wallet app upgrade, BetMGM users who sign up in Nevada and reside in other BetMGM U.S. mobile markets can continue to wager upon returning home.
Everi Holdings Inc., a premier provider of land-based and digital casino gaming content and products, financial technology, player loyalty solutions, and bingo, announced that its stockholders have voted at a special meeting of Everi stockholders to approve the pending simultaneous acquisition of Everi and the Gaming & Digital business of International Game Technology PLC by a newly formed holding company owned by funds managed by affiliates of Apollo Global Management, Inc. through a merger. As previously announced, pursuant to the terms of the merger agreement, Everi stockholders will receive $14.25 per share in cash for every share of Everi common stock they own immediately prior to the effective time of the merger.
At the Special Meeting, approximately 99.88% of the shares voted were voted in favor of the merger, which represented approximately 71.48% of the total outstanding shares of Everi common stock as of October 3, 2024, the record date for the Special Meeting.
“We are pleased that our stockholders supported our transaction with the Apollo Funds,” said Michael Rumbolz, chairman of the Company’s Board of Directors. “We now shift our focus to the important next steps toward completing the transaction and maximizing value for Everi stockholders.”
Assuming timely satisfaction of necessary closing conditions, the proposed transaction is expected to close by the end of the third quarter of 2025.
The final voting results on the proposals voted on at the Special Meeting will be set forth in a Form 8-K filed by the Company with the U.S. Securities and Exchange Commission (the “SEC”).
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