Acquisition will see Bragg double down on its commitment to crafting captivating proprietary content, with a particular focus on expanding in North America
Bragg Gaming has entered into a deal to acquire Drayton International, which holds equity interests in five game development studios including Boomerang Studios.
The company has entered into a binding term sheet to acquire 100 per cent of the equity interests of Drayton for 4.5 million newly issued Bragg common shares priced at US$2.00 per share.
Bragg said that the agreement will increase its exposure to high-margin proprietary content and enables its expansion into emerging and adjacent gaming markets including advance deposit wagering (ADW), which alone unlocks a potential 400 per cent uplift in its US market reach.
Drayton is a multi-asset platform combining varying equity interests in five game development studios with three technology and distribution platforms.
The studio portfolio comprises:
Boomerang Studios (54.5 per cent owned), the cash-generative anchor of the portfolio, with 80 titles to date;
Dream Streak Gaming (48.5 per cent), the developer of a proprietary hybrid slot engine that maps live horse-race results to slot mechanics, which is planned to be deployed via BetMakers ADW offering from July 2026;
Rise Gaming (54 per cent), a vertically integrated studio with full IP ownership across the 24K Gold, Hot1 and Thunderways series;
Hit Squad (37.5 per cent), a US-focused omni-channel studio; and
Neotopia (24 per cent), a specialist creative studio aligned with Boomerang, providing premium art and design uplift across the portfolio.
In addition, Drayton’s platform assets include; Arc Gaming, the exclusive aggregator for the BetMakers Tote platform; Vision PlAI, a patent-pending artificial intelligence (AI)-powered software platform; and 3 Shores, a portfolio of performance marketing and affiliate assets focused on gaming customer acquisition.
The transaction also provides Bragg with a contractual path to full ownership of all five of Drayton’s portfolio studios.
Together, these assets will provide Bragg with more than 100 developed titles across the five studios, as well as proprietary mechanics, including hybrid slot engines linked to live racing data, and a balanced mix of recurring royalties and development revenues.
“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,” said Bragg CEO Matevž Mazij. “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. By prioritizing operational leverage, we have decoupled revenue growth from fixed costs, with the goal of ensuring that our expansion into high-growth markets like Brazil and the US results in sustained margin expansion. We are no longer just a technology provider; we are a data-rich, content games-first, user experience player and user-obsessed organization, leveraging intelligence to shorten production cycles and optimize the player journey through hyper-personalized, data-driven engagement.”
Mazij continued: “We are energized by the commercial advantages inherent in doubling down on our customer obsession and commitment to crafting the best gaming worlds. This vision is fueled by a unified data strategy that allows us to predict market trends and player needs with unrivaled precision.
“In that regard, we are excited that this transaction will mark our first entry into the emerging ADW space. By leveraging our remote games server technology, which is agile enough to rapidly adapt to alternative regulatory environments, and the ADW framework, which turns parimutuel wagering into a high-engagement, digital-first entertainment experience, we will be able to meet player demand in dozens more US states today than we could to date.
“In other words, the US landscape is shifting, and we believe that Bragg’s relative speed and regulatory agility is already beginning to translate into our being leaders rather than followers in the Alternative Markets space.”
Bragg expects that Drayton’s leadership and development teams will continue with the company post-closing.
The acquisition is subject to applicable gaming regulatory approvals, approval of the listing of the Bragg common shares to be issued under the transaction on the Toronto Stock Exchange and the Nasdaq Stock Market, and the satisfaction of certain other closing conditions.
Subject to the satisfaction of such conditions, Bragg expects the deal to close during the third quarter of 2026.
In connection with the closing of the transaction, Matt Davey will be appointed non-executive chairman of Bragg, succeeding current chair Holly Gagnon, who will remain on the Board as an independent director.
Shares in Bragg Gaming Group Ltd (TSX:BRAG) were trading 14.78 per cent lower at CA$2.48 per share in Toronto earlier Thursday, with the announcement coinciding with the release of the company’s first quarter results.