We came across a bullish thesis on Bragg Gaming Group Inc. (BRAG) on Substack by Inflexio Research. In this article, we will summarize the bulls’ thesis on BRAG. Bragg Gaming Group Inc. (BRAG)’s share was trading at $4.17 as of March 10th. BRAG’s forward P/E was 81.30 according to Yahoo Finance.
A close-up of a roulette wheel at an online casino, capturing the excitement of the game.
Bragg Gaming (BRAG) continues to strengthen its position in the iGaming industry, with a series of positive developments reinforcing its growth trajectory. The company recently pre-released its Q4 results, which were in line with expectations, and provided an optimistic outlook for 2025. Since then, Bragg has announced four new customer partnerships: Svenska Spel in Sweden, Estoril Sol Digital in Portugal, Loto-Quebec in Canada, and TeamMexico in Mexico. Svenska Spel and Loto-Quebec, as the dominant players in their respective markets and state-owned entities, add credibility to Bragg’s growing international presence. Despite a 27% increase in its stock price from CAD 5.43 to CAD 6.90, the company’s valuation remains attractive, with only a modest re-rating from 4.7x to 5.3x 2025 EBITDA estimates.
Beyond its guidance update, Bragg’s strategic expansion efforts continue to gain momentum. A recent interview with its LATAM director highlighted the company’s focus on the North American market, where it is integrating its technology solutions with an already established content footprint. The partnership with Caesars, which was recently announced, is particularly notable, as it carries higher-than-average margins and has the potential to significantly accelerate profitability. Management has indicated that additional agreements of this nature are expected in the coming months, further strengthening Bragg’s position in the region.
The renewal of Kambi’s contract with Betcity represents another key development. Betcity, Bragg’s largest customer, accounted for 22% of its revenue as of Q3 2024. Concerns had emerged over Betcity’s plans to internalize its sportsbook and player account management (PAM) functions, potentially displacing Bragg’s services. However, the renewal of Kambi’s contract suggests continued reliance on Bragg’s technology, reducing the risk of customer attrition. Bragg’s contract with Betcity is set to expire in late 2025, and a formal renewal announcement could serve as a key catalyst in the near future.
Industry-wide trends further support Bragg’s long-term outlook. The United States has seen a wave of iGaming bills introduced in several states, including Maryland, Virginia, New York, Indiana, Wyoming, Massachusetts, New Hampshire, Illinois, and Hawaii. While most of these legislative efforts are unlikely to pass in 2024, any state-level legalization would present a significant growth opportunity. The broader shift toward online gambling remains a favorable trend, reinforcing Bragg’s potential for continued expansion.
With strong business momentum, increasing visibility through partnerships, a robust balance sheet, and an undemanding valuation, Bragg Gaming remains well-positioned for future growth. The company’s management team continues to pursue monetization opportunities, ensuring that Bragg remains at the forefront of the evolving iGaming industry. As Bragg executes on its strategy, the stock’s risk/reward profile remains highly compelling.
Bragg Gaming Group Inc. (BRAG) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 3 hedge fund portfolios held BRAG at the end of the third quarter which was 4 in the previous quarter. While we acknowledge the risk and potential of BRAG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BRAG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.