Mr. Yaniv Sherman reports

BRAGG GAMING GROUP FIRST QUARTER REVENUE RISES 18.1% TO EUROS22.9 MILLION (USD $25.2 MILLION)

Bragg Gaming Group Inc. has released record financial results for the first quarter of 2023. The company also reiterated its growth targets for full year 2023 revenue and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization).

Chief Executive Officer Commentary

"We extended our momentum in the first quarter with the strong growth reflecting the continued success of our initiatives to diversify the business towards being a content-driven iGaming solutions provider in a growing number of North American and European markets," said Yaniv Sherman, Chief Executive Officer for Bragg. "We generated record first quarter revenue of EUR euros22.9 million (USD $25.2 million), gross profit of EUR euros12.2 million (USD $13.4 million), and Adjusted EBITDA of EUR euros3.9 million (USD $4.3 million), marking gains of 18%, 22% and 28%, respectively, over 1Q22 levels. These results include the benefit of growing contributions from higher margin proprietary and exclusive third-party games, and platform solutions which helped drive a 170-basis point year-over-year improvement in our gross profit margin to 53.5%.

"We continue to make consistent progress in scaling the distribution of our new in-house developed and exclusive third-party content, launching with an additional six operators in three North American markets and eight operators in five European markets to date in 2023, including our first entry with new proprietary content in Pennsylvania, Mexico, Italy and Belgium. So far in 2023 we have launched 26 new proprietary and exclusive games globally as we continue to optimize the cadence of our new game releases. The pace of our new game releases is expected to accelerate in the second half of the year which we believe will further strengthen our foundation to deliver meaningful revenue and cash flow growth while we make consistent progress on our mid-term goal of growing gross profit margin to approximately 60%."

Mr. Sherman concluded, "Our start to 2023 demonstrates our ability to successfully deliver strong near-term financial performance as we continue to successfully execute on our plan to drive consistent profitable revenue growth and increasing cash flow. As reflected by the midpoints of our 2023 full year revenue and Adjusted EBITDA growth targets of 12% and 28%, respectively, Bragg has significant underlying business momentum and we are confident that we will continue to extend this momentum and create new near- and long-term shareholder value."

First Quarter 2023 and Recent Business Highlights

• New content and new RGS technology rollout continued with 1Q23 launches in New Jersey with DraftKings, Caesars, Resorts and Mohegan Sun
• Entered Belgium iGaming market in February, launching proprietary content with market leader Napoleon Sports and Casino
• Continued growth in Switzerland, launching content with three new local online casino operators since January 1, 2023
• Entered Mexico iGaming market in April with market leader Caliente Interactive
• Entered Italy iGaming market in April with leading local games distributer Microgame
• New content and new RGS technology went live in Pennsylvania in May with Rush Street Interactive

First Quarter 2023 Financial Results and other Key Metrics Highlights

• Revenue increased by 18.1% to euros22.9 million (USD $25.2 million) compared to euros19.4 million (USD $21.3 million) in 1Q22.
• Wagering revenue generated by customers of euros5.2 billion (USD $5.7 billion) increased from euros3.8 billion (USD $4.2 billion) in 1Q22.
• Gross profit increased 22.0% to euros12.2 million (USD $13.4 million) from euros10.0 million (USD $11.0 million) in 1Q22, representing a gross profit margin of 53.5%. Gross profit in 1Q23 reflects a change in product mix towards turn-key Player Account Management ("PAM") customers, managed services and proprietary content, resulting in improved gross profit and Adjusted EBITDA compared to the year-ago period.
• Net loss for the period was euros0.5 million (USD $0.5 million), an improvement from a net loss of euros0.7 million (USD $0.8 million) in 1Q22, primarily due to the higher gross profit and lower corporate, professional and sales and marketing costs, partially offset by increases in total employee costs, depreciation and amortization, and IT and hosting costs.
• Adjusted EBITDA was euros3.9 million (USD $4.3 million), an increase of 28.1% compared to euros3.0 million (USD $3.3 million) in 1Q22, representing an Adjusted EBITDA margin of 17.0%, compared to 15.7% in 1Q22.
• Cash flow from operations was euros6.4 million (USD $7.0 million), an increase of euros2.5 (USD $2.7 million) compared to 1Q22.
• Cash and cash equivalents as of March 31, 2023 was euros15.1 million (USD $16.6 million) and net working capital, excluding deferred consideration, was euros7.7 million (USD $8.5 million).

Reiterates Full Year 2023 Revenue and Adjusted EBITDA Guidance

• Bragg today reiterated its 2023 full year revenue and Adjusted EBITDA guidance originally provided on March 21, 2023. The Company expects revenue to rise approximately 10% to 15% to euros93-97 million (US $102.2-106.6 million) and Adjusted EBITDA to increase approximately 20% to 36% to euros14.5-16.5 million (US $15.9-18.1 million).

Investor Conference Call

The Company will host a conference call today, May 10, 2023, at 8:30 a.m. Eastern Time, to discuss its first quarter 2023 results. During the call, management will review a presentation that will be made available to download on the company's website.

To join the call, please use the below dial-in information:

• Participant Toll-Free Dial-In Number (US/CANADA): (888) 210-4227
• Participant Toll Dial-In Number (INTERNATIONAL): (646) 960-0341
• United Kingdom: Toll-Free: +44 800 358 0970
• United Kingdom: Toll Dial-In: +44.20.3433.3846
• Conference ID: 2522980

Or join the webcast under the Media section.

A replay of the call will be available until May 17, 2023 following the conclusion of the live call. In order to access the replay, dial (647) 362-9199 or (800) 770-2030 (toll-free) and use the passcode 2522980.

About Bragg Gaming Group

Bragg Gaming Group (NASDAQ: BRAG, TSX: BRAG) is a content-driven iGaming technology provider, serving online and land-based gaming operators with its proprietary and exclusive content, and its cutting-edge technology. Bragg Studios offer high-performing, data-driven and passionately crafted casino gaming titles from in-house brands Wild Streak Gaming, Spin Games, Atomic Slot Lab, Indigo Magic and Oryx Gaming. Its proprietary content portfolio is complemented by a range of exclusive titles from carefully selected studio partners which are Powered By Bragg: games built on Bragg remote games server (Bragg RGS) technology, distributed via the Bragg Hub content delivery platform and available exclusively to Bragg's customers. Bragg's modern and flexible omnichannel Player Account Management (Bragg PAM) platform powers multiple leading iCasino and sportsbook brands and is supported by expert in-house managed operational and marketing services. All content delivered via the Bragg Hub, whether exclusive or from Bragg's large, aggregated games portfolio, is managed from a single back-office and is supported by powerful data analytics tools, as well as Bragg's Fuze(TM) player engagement toolset. Bragg is licensed or otherwise certified, approved and operational in multiple regulated iCasino markets globally, including in New Jersey, Pennsylvania, Michigan, Ontario, the United Kingdom, the Netherlands, Germany, Sweden, Spain, Malta and Colombia.

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