Bragg Gaming Group has finalized its $9 million purchase of Drayton International, a strategic move designed to enhance its presence in the US market while implementing several leadership changes.

The Toronto-based company first announced its intention to acquire Drayton International in May and has now completed the transaction, which was executed entirely through the issuance of 4.5 million new shares of Bragg stock.

These newly issued shares will be subject to a lock-up period extending up to 24 months.

Bragg’s CEO, Matevz Mazij, stated that the acquisition of Drayton provides Bragg with “direct, credible entry” into the US market, along with a diversified portfolio and robust distribution infrastructure.

“In addition to this acquisition, our studios are broadening the variety of games and features available on the platform, including the early implementation of AI-assisted development tools to expedite our content delivery. We recognize significant long-term potential and will maintain transparency with shareholders and the market as our plans develop.”

Bragg CEO Matevz Mazij

The United States continues to be a key driver for Bragg’s revenue growth, alongside opportunities in Latin America, particularly after the launch of Brazil’s regulated iGaming market in January 2025. Bragg also has a strong foothold in Europe and is anticipating its debut in Finland with partner SuomiVeto when the market opens in 2027.

Leadership Changes

With the announcement of the finalized acquisition, Bragg also revealed the exit of CEO Matevz Mazij from the company’s board. Mazij decided to resign from the board in June, following a majority vote against his re-election by shareholders.

During Mazij’s tenure on the board, Bragg’s share price plummeted approximately 60%. Despite this resignation from the board, it was confirmed that Mazij will remain in his role as CEO.

Bragg also appointed Matt Davey as the non-executive chairman of the board of directors. Davey, a seasoned iGaming entrepreneur, founded and currently chairs Tekkorp Capital, a gaming-focused investment fund that owns about 10% of Bragg’s shares.

The company noted Davey’s extensive background in gaming mergers and acquisitions, particularly in US sports betting and online gaming, as a key factor in his appointment.

“Matt is highly esteemed within our industry and brings a wealth of strategic, operational, and governance expertise,” stated Holly Gagnon, board chair.

“His track record is impressive, but what stands out is that he is genuinely committed to our future direction. As we embark on this new phase post-transaction, we’re grateful to have his experience and insights on the board as we strive for execution and sustained value for our shareholders,” she added.

As part of the leadership transition, Davey will take over as chair of the board from Gagnon, who will continue her role as a director.

Challenging Year Ahead

Following the announcements regarding Drayton International and Matt Davey, Bragg shares, which are traded on both the Toronto Stock Exchange and Nasdaq, experienced a 9% increase, though they are still down around 20% year-to-date.

Over the past five years, Bragg’s shares have plummeted more than 75% in value.

The company has reported two significant workforce reductions in 2026. Earlier this month, it announced a 19% staff cut aimed at achieving $6.5 million in annual cost savings. This followed a 12% workforce reduction in January as part of a strategic realignment.

After the second announcement, Mazij noted that these reductions were integral to Bragg’s AI-first transformation strategy for 2027, with the objective of automating up to 75% of internal operations.

“By streamlining our organization in alignment with our accelerated AI-first initiatives, we are enhancing our cost structure while safeguarding our technology,” Mazij remarked in a statement.

The company has also faced challenges following the departure of its largest anchor client, Entain’s BetCity, in May, as well as a talent drain linked to the exit of key developers and leadership from Wild Streak Gaming, Bragg’s prominent Las Vegas-based slot studio.