Bragg Gaming Group reported Q1 2026 revenue of €25.7 million ($29.7 million), up 0.6% year-on-year, as the Toronto-listed B2B content and platform provider announced a binding agreement to acquire gaming technology platform Drayton International in a share-based deal valued at approximately $9 million.
Q1 Financial Results
Revenue held essentially flat compared to Q1 2025. The net loss narrowed 55% to €1.2 million ($1.4 million), from €2.6 million in the prior-year period. Operating loss improved 18% to €1.4 million, down from €1.7 million. Adjusted EBITDA came in at €4.0 million ($4.6 million), representing a margin of 15.7%, a marginal decline from 16.0% and €4.1 million in Q1 2025.
Gross profit held at €14.2 million, with revenue costs rising in line with the slight top-line increase. The improvement at the net loss line was driven in part by the absence of a loss on remeasurement of deferred consideration recorded in the prior year period, and a positive cumulative translation adjustment of €301,000 — compared to a €1.4 million negative impact in Q1 2025. The company ended the quarter with a bottom-line net loss of €885,000, against €4.1 million a year earlier.
Geographic Performance
Brazil was the standout market. Revenue there rose 33.3% year-on-year to €2.9 million, driven by continued provider onboarding following market regulation. Malta overtook the Netherlands as Bragg’s primary revenue-generating region, posting €5.8 million — up 26.1%.
The Netherlands moved in the opposite direction. Revenue fell 29.7% to €4.5 million, with management attributing the decline to new tax implications in that market. A short-term uplift from a fixed Player Account Management agreement with Entain partially offset the pressure, with Netherlands revenue on that measure up 3.5% year-on-year. Entain has itself flagged tax headwinds across several European markets, a dynamic now visibly affecting Bragg’s Dutch book.
In the US, total revenue fell 12.1% to €2.5 million. Bragg attributed the decline to a one-off contribution in Q1 2025 from a content and technology project with Caesars Entertainment. Stripping out that effect, recurring US revenue grew 7.1%, driven by expansion of the company’s proprietary content titles. Growth was also recorded in Belgium and Croatia.
Drayton Acquisition
Bragg will issue 4.5 million new common shares at $2.00 each to acquire Drayton International, a multi-asset gaming technology and content platform. The deal is subject to gaming regulatory approvals and stock exchange listing approvals from the Toronto Stock Exchange and Nasdaq, with closing expected in Q3 2026.
Drayton holds varying equity interests in five game development studios: Boomerang Studios (54.5%), Dream Streak Gaming (48.5%), Rise Gaming (54%), Hit Squad (37.5%), and Neotopia (24%). Its platform assets include Arc Gaming, an exclusive aggregator for the BetMakers Tote platform; Vision PlAI, a patent-pending AI-powered software platform; and 3 Shores, a portfolio of performance marketing and affiliate assets. The transaction gives Bragg a contractual path to full ownership of all five studios.
The strategic rationale centres on the US market. Dream Streak Gaming and Arc Gaming provide access to advance deposit wagering, a channel available in more than 30 US states — compared to the seven states where traditional iGaming currently operates. Bragg said the acquisition represents a “five-fold expansion” of its US market reach.
“The acquisition of Drayton represents a highly strategic step forward for Bragg as we continue to expand our global footprint and invest in proprietary IP and technology, complemented by a renewed, progressive look for our brand. More than anything, this acquisition encapsulates our streamlined and coherent user-focused strategy. Over the last three years, we have systematically transformed our business into a global B2B leader.”
— Matevž Mazij, CEO, Bragg Gaming Group
Alongside the transaction, Bragg confirmed that Matt Davey — founder and chairman of Tekkorp Capital and a former CEO of NYX Gaming Group — will join its board as Non-Executive Chairman upon closing, succeeding current chair Holly Gagnon, who will remain as an independent director. Davey purchased 1 million Bragg common shares in a private transaction with CEO Matevž Mazij in February 2026. Combined with his existing Drayton equity, that gives him an approximate 10% ownership stake in Bragg following the planned acquisition.
Outlook and Restructuring
Bragg reaffirmed its full-year 2026 guidance: revenue of €97 million to €104.5 million, and adjusted EBITDA of €16 million to €19 million. That guidance implies a meaningful acceleration through the remaining three quarters, given Q1 revenue of €25.7 million.
The company also confirmed it carried out a 12% workforce reduction earlier in 2026, framed as a cost-efficiency measure ahead of the Drayton integration. Bragg also confirmed a rebrand under the lowercase “bragg” identity, described as reflecting its games-first positioning.
The acquisition and Q1 results come as content and platform providers continue to face contrasting pressures across regulated markets. Evolution reported flat full-year 2025 revenue and a 9% EBITDA decline as European regulatory pressure weighed on its live casino business. Bragg’s pivot toward proprietary IP and ADW-linked US expansion positions it differently, though the Q3 closing timeline for Drayton leaves several quarters before the combined entity’s revenue contribution becomes visible.
Full-year guidance of €97 million to €104.5 million will be the benchmark against which the games-first transformation is measured.
Source: Bragg Gaming Group
