Mr. Richard Carter reports

BRAGG GAMING CONTINUES U.S. EXPANSION; ACQUIRES PREMIUM CONTENT DEVELOPER WILD STREAK GAMING

Bragg Gaming Group Inc. has acquired Wild Streak Gaming, a Las Vegas, Nev.-based content creation studio with a portfolio of 39 premium casino slot titles supported across on-line and land-based applications.

Bragg signed a purchase agreement to acquire all of the outstanding membership interests of Wild Streak in a cash and stock transaction for a purchase price of approximately $30-million (U.S.). Pursuant to the transaction, which closed simultaneously with the signing of the purchase agreement, the sellers of Wild Streak received $10-million (U.S.) in cash at closing and will receive $20-million (U.S.) worth of common shares of Bragg over the next three years, subject to acceleration in the event of a change of control.

Together with the pending acquisition of Spin Games, announced on May 12, 2021, the transaction serves to advance Bragg's acquisition strategy by increasing its ability to distribute and develop high-quality on-line casino content to the U.S. market in-house. The transaction provides Bragg with a library of 39 premium casino content titles, including several top-performing land-based titles, and a robust suite of intellectual property and know-how including game designs, mathematic works, advance game mechanics and features that are specifically tailored for U.S. markets.

Wild Streak's design team comprises experienced mathematical and creative minds from the casino gaming industry and includes Doug Fallon, the founder and chief executive officer of Wild Streak, and a renowned land-based slot designer with over 20 years of industry experience. Mr. Fallon worked in several executive marketing and design positions over 11-plus years at Aristocrat before founding Wild Streak. Wild Streak has created popular games for the largest U.S. land-based slots manufacturers and designed the games and mechanics behind several well-known land-based slots titles and brands along with successful games in both social and real-money on-line casinos. Wild Streak has a library of land-based content that will be customized for the U.S. on-line market along with building upon existing high performers such as Dragon Power in the U.S. on-line market.

Effective at closing of the transaction, Mr. Fallon will join Bragg as managing director of group content and will play a key role in leading Bragg through its U.S. content creation strategy while also collaborating closely with the company's European development staff to facilitate the cross-selling and repackaging of Bragg's proprietary European content for U.S. operators.

Upon the completion of the Spin and Wild Streak transactions, Bragg will have successfully executed on its strategy of acquiring the essential resources and technology assets required to become a tier 1 vertically integrated business-to-business i-gaming business operating in U.S. and Canadian markets. Bragg's consolidated operations will comprise an enhanced full turnkey i-gaming, content delivery and player engagement platform with integrations into the majority of the tier 1 operators across both U.S. and European markets, and a robust in-house content development function with localized market expertise that will allow the company to expand its proprietary content offering.

Wild Streak reported $1.05-million (U.S.) in revenue and $233,000 (U.S.) of EBITDA (earnings before interest, taxes, depreciation and amortization) in fiscal year 2020, and $487,000 (U.S.) in revenue and $241,000 (U.S.) of EBITDA in Q1 2021.

"In an industry where premium content is king, Doug and his team have built up an enviable track record of developing leading premium casino slot content for both the land-based and on-line casino industry," said Richard Carter, chief executive officer of Bragg Gaming. "We look forward to integrating this know-how into Bragg's overall offering and significantly expanding the company's higher-margin proprietary in-house casino slot content capabilities.

"We expect this transaction to be materially enhancing to both revenue and EBITDA in the first full year of ownership, as well as strategically compelling given Wild Steak brings a wealth of U.S. market casino games insights into the group, including valuable game designs, advanced game mechanics and features that are specifically tailored for and proven in the U.S. market.

"We welcome Doug and the whole Wild Streak team on board, and we look forward to leveraging Doug's expertise to lead our U.S. and global content creation strategy," he added.

"Richard and the Bragg Gaming executive team have put in place the strategy and key components to accelerate their growth and market share in the i-gaming market, and Wild Streak is excited to be a cornerstone for their growth strategy," commented Mr. Fallon. "We are highly impressed with the Oryx Gaming technology stack's robust foundation and their roadmap for additional capabilities in development. We are looking forward to working with the Oryx team to create unique player experiences as we embed their technology into our game designs.

"As the trends indicate, much of the historical content designed for Europe does not resonate with the traditional American player and we believe our background is an ideal fit with for the Bragg Gaming Group as it focuses on this emerging market," he added.

Wild Streak gaming highlights

• Initially focused on land-based game design and mathematics, Wild Streak has been increasingly focusing on on-line content as it customizes games for a wide variety of markets in the United States and Europe.
• Growing portfolio of 39 titles with a variety of game assets and design mechanics that service a broad array of operators and slot players with games deployed on 12 different platforms including land-based, on-line and social casinos.
• Passionate agile team with multiple employees having over 20 years of experience in the slot design industry working for some of the largest companies including IGT, Aristocrat, Scientific Games and Konami.
• Wild Streak's game content is distributed across six land-based platforms around the globe including traditional Class 3 casinos, video lottery terminal (VLT), limited payout machines (LPM) and Class 2 casino markets. Wild Steak has collaborated and deployed game content with leading global manufacturers including IGT and Scientific Games.
• Proven performers in land-based casino market across multiple slot manufacturer platforms.
• Highly successful in the New Jersey, United States, on-line market with Dragon Power and multiple successful titles released in Europe in 2021, including Congo Cash, Temujin Treasures and Amazing Money Machine.

Bragg Gaming Group highlights

• Leading global business-to-business gaming technology and content provider serving markets primarily in Europe and Latin America via its proprietary Oryx Gaming full turnkey solution.
• Its modular, scalable and fully customizable Oryx Gaming technology and content solutions have been developed, licensed, launched and operated on behalf of more than 125 i-gaming and sports betting operators worldwide.
• The full Oryx turnkey solution offers on-line casino, sports book and lottery operations, including the proprietary Oryx remote games server, Oryx Hub and the powerful new player engagement platform (PEP).
• The innovative PEP suite of engagement tools offers proven retention-boosting gamification features such as quests, achievements, leaderboards, tournaments and bespoke jackpot game promotions.
• Mr. Carter was recently announced as chief executive officer of Bragg, moving from the position of board chair, which he had held since October, 2020.

About Bragg Gaming Group Inc.

Bragg Gaming Group is a global business-to-business gaming technology and content provider. Since its inception in 2012, Bragg has grown to include operations across Europe and Latin America, and is expanding into an international force within the growing global on-line gaming market.

Through its wholly owned subsidiary Oryx, Bragg delivers an innovative business-to-business i-gaming platform, casino content aggregator, managed sports book and managed services provider, offering cutting-edge content from leading studios.

Bragg's Oryx Gaming is licensed by the Malta Gaming Authority and the Romanian National Gambling Office, and its content is certified or approved in 18 other major jurisdictions. Underpinning Bragg Gaming Group's commitment to information security, Oryx Gaming was recently awarded an ISO/IEC (International Organization for Standardization/International Electrotechnical Commission) 27001 certificate.

We seek Safe Harbor.