By<\/p>\n
Zoltan Tundik<\/strong><\/p>\n \u00a0<\/p>\n FN Media Group Presents\u00a0<\/em><\/strong>Safehaven.com<\/em><\/strong>\u00a0<\/em><\/strong>Market Commentary<\/em><\/strong><\/p>\n Currently, Global Market Advisors estimate illicit sports betting is a\u00a0$150 billion\u00a0industry.\u00a0NBA commissioner\u00a0Adam Silverhas written that some even estimate it at\u00a0$400 billion\u00a0per year. And in 2018, a little-known U.S. Supreme Court decision ripped open the door to a potential multi-billion-dollar market \u2013 the digital gambling industry. Mentioned in today\u2019s commentary includes: Stars Group Inc (NASDAQ:TSG), Brookfield Business Partners (NYSE:BBU), GameHost Inc (OTC:GHIFF), Blackberry Ltd. (NYSE:BB), Wynn Resorts Limited (NASDAQ:WYNN).<\/p>\n For decades this was a massive black market. But after a landmark ruling in the nation\u2019s highest court, the whole industry is now poised for rapid legalization. A rush for the U.S. market is kicking off. And\u00a0Bragg Gaming Group<\/strong>\u00a0(BRAG.V;\u00a0BKDCF) is positioned to seize a chunk of the online gambling spoils.<\/p>\n America\u2018s Multi Billion Dollar Gambling Revolution<\/strong><\/p>\n On\u00a0May 14th\u00a0the U.S. Supreme Court ruled in favor of\u00a0New Jersey\u00a0in a 6-3 decision \u2013 striking down the federal law that banned sports betting in most states. This is a potential\u00a0$400 billion\u00a0market, and it\u2019s now open for business. And, while many investors are focusing on Blue Chip casino names \u2013 an opportunity may be in stocks like\u00a0Bragg Gaming Group (<\/strong>BRAG.V<\/strong>;<\/strong>\u00a0BKDCF<\/strong>).<\/strong><\/p>\n To dominate this new industry, companies need three things:<\/p>\n #1 \u2013<\/strong>\u00a0A veteran operating team with experience in the industry.<\/p>\n #2 \u2013<\/strong>\u00a0Proven technology with a tested back office platform.<\/p>\n And\u2026<\/p>\n #3 \u2013<\/strong>\u00a0Media assets that can drive massive customer growth.<\/p>\n Bragg<\/strong>\u00a0has all three \u2013 and they could soon join the likes of\u00a0Las Vegas Sands (LVS)<\/strong>,\u00a0Wynn Resorts (WYNN)<\/strong>\u00a0and\u00a0Caesar\u2018s Entertainment (CZR)<\/strong>\u00a0in the online gaming industry.<\/p>\n Veteran Gaming Industry Operators<\/strong><\/p>\n Bragg Gaming Group<\/strong>\u00a0(BRAG.V;\u00a0BKDCF) boasts a gaming industry dream team. CEO\u00a0Dominic Mansour\u00a0has nearly 20 years\u2019 experience in the gaming and lottery industry. He operated Full Tilt poker \u2013 the 2nd largest poker site in the world. This was an enterprise with over\u00a0$450 million\u00a0in annual revenue.<\/p>\n CFO\u00a0Akshay Kumar\u00a0was previously CFO at NetPlay. Prior to this he was Financial Controller at Sporting Index, the sports spread betting specialist.<\/p>\n Matevz Mazij is the Managing Director of Oryx \u2013 a key\u00a0Bragg Gaming<\/strong>\u00a0division.\u00a0He founded the company in 2010, after spending 8 years as one of the IT minds behind multiple online and land-based gaming companies around the world. Together, the team intends to compete across the online gambling industry\u2019s full spectrum of B2B and B2C verticals \u2013 first in\u00a0Europe\u00a0and ultimately in\u00a0the United States.<\/p>\n A B2B Online Gambling Powerhouse\u00a0With Positive Cash Flow Today<\/strong><\/p>\n The first pillar of the\u00a0Bragg Gaming Group (<\/strong>BRAG.V<\/strong>;<\/strong>\u00a0BKDCF<\/strong>)<\/strong>\u00a0opportunity is Oryx Gaming \u2013 a turnkey B2B gaming solution provider they acquired in 2018. It\u2019s critical to the company\u2019s plans for two reasons:<\/p>\n #1 \u2013 Infrastructure<\/em><\/strong><\/p>\n And\u2026<\/p>\n #2 \u2013 Cashflow<\/em><\/strong><\/p>\n Oryx publishes over 5,000 game titles. They provide the technology, the gaming platform, risk management, operations and back office services. They are certified, approved and licensed in\u00a0Malta, Schleswig Holstein,\u00a0Spain,\u00a0Romania,\u00a0Colombia,\u00a0Croatia, Serbia,\u00a0Gibraltar, UK and\u00a0Slovenia. And, right now they\u2019re very much cash flow positive.<\/p>\n This gives\u00a0Bragg Gaming Group (BRAG.V;<\/strong>\u00a0BKDCF)<\/strong>\u00a0the resources and operational capability to launch their own B2C gaming brands in both\u00a0Europe\u00a0and\u00a0the United States.<\/p>\n A Sports Media Asset That Dominates ESPN On Facebook<\/strong><\/p>\n Since 2003 when U.S. regulators began cracking down on gambling advertisements, most ad platforms highly restrict, or even prohibit them outright. Facebook requires written permission in advance for any real money gaming ad.<\/p>\n That\u2019s why\u00a0Bragg Gaming Group<\/strong>\u00a0(BRAG.V;\u00a0BKDCF) which was then known as Breaking Data, in 2017 acquired GiveMeSport \u2013 a next generation sports media asset. With 26 million followers, they are the largest sports publisher on Facebook. ESPN is in second place with just 18 million followers \u2013 or over 44% less. Right now, the only monetization plan for GMS is paid advertising. Their ad revenue growth is sitting at 83% year over year. But that\u2019s merely the short-term plan for the site.<\/p>\n The Next World Class Gaming Company?<\/strong><\/p>\n According to\u00a0Bragg Gaming Group<\/strong>\u00a0(BRAG.V;\u00a0BKDCF) CEO\u00a0Dominic Mansour \u201cthe acquisition of Oryx is the first step on the road to the creation of a new global gaming group.\u201d<\/p>\n First, they intend to launch the\u00a0GiveMeBet<\/strong>\u00a0gambling platform.\u00a0Oryx will provide the technology platform and software to run the service.\u00a0Bragg<\/strong>\u00a0Gaming<\/strong>\u00a0has an agreement with Argyll, which holds a UK betting license to operate the site.<\/p>\n They\u2019ll leverage the massive audience from their GiveMeSport website to drive adoption and growth. This isn\u2019t an untried model \u2013 it\u2019s been done before.<\/p>\n As legalization unfolds in\u00a0the United States, the company intends to grow and acquire assets across the full spectrum of gaming verticals in multiple jurisdictions.<\/p>\n Why You Need To Pay Attention<\/strong><\/p>\n The\u00a0May 14th\u00a0U.S. Supreme Court decision to overturn PASPA, in favor of\u00a0New Jersey, was a watershed moment for online sports gambling in\u00a0the United States.<\/p>\n Seven states \u2013\u00a0Connecticut,\u00a0Delaware,\u00a0Pennsylvania,\u00a0Iowa,\u00a0New York,\u00a0Mississippi\u00a0and\u00a0West Virginia\u00a0\u2013 have laws prepared to make sports betting legal.\u00a0And BRAGG boasts an incredibly experienced team of industry veterans. With Oryx, they have both the infrastructure and revenue to pursue an ambitious roadmap.<\/p>\n Thanks to GiveMeSport\u2019s over 30 million unique visitors \u2013 they also have a media springboard to launch B2C platforms like GiveMeBet in\u00a0Europe\u00a0and the U.S. This is a massive potential opportunity for\u00a0Bragg Gaming Group<\/strong>\u00a0(BRAG.V;\u00a0BKDCF)<\/p>\n Other companies ready to jump on the betting boom:<\/strong><\/p>\n Stars Group Inc<\/strong>\u00a0(NASDAQ:TSG)<\/p>\n In December, Stars Group secured a major partnership with the National Basketball Association in order to use data and league marks across their digital sports betting offerings.<\/p>\n Scott Kaufman-Ross, Head of Fantasy & Gaming, NBA explained, \u201cThis dynamic partnership will be another way to create authentic fan engagement with league logos and official NBA betting data, while leveraging Stars\u2019 global expertise to further optimize the fan experience.\u201d<\/p>\n Brookfield Business Partners<\/strong>\u00a0(NYSE:BBU)<\/p>\n Brookfield\u00a0is a top-notch business acquisition firm with a tremendous focus on success and the creation of shareholder value. The company\u2019s experienced leadership has led to incredible deals over the years, including a profitable partnership with Great Canadian Gaming.<\/p>\n The partnership with Great Canadian Gaming allowed the pair to purchase an array of gaming assets in the\u00a0Greater Toronto Area\u00a0at price of\u00a0C$170. Together, the two companies aim to improve the value of these assets as well as bolster the customer experience with new offerings and expansions of acquired properties.<\/p>\n GameHost Inc<\/strong>\u00a0(OTCMKTS:GHIFF)<\/p>\n GameHost is a leading entertainment and hospitality provider based in\u00a0Alberta, Canada. The company operates four primary properties in the\u00a0Alberta\u00a0province, each offering slot machines, table games, top quality hospitality and more meant to appeal to both casual gamers and dedicated gamers alike.<\/p>\n GameHost is well-known for providing dividends to its investors, a plus for those who have stuck with the company over the years. In fact, its focus on increasing value for shareholders is made abundantly clear in its mission to reduce costs and improve offerings, creating some of the highest profit margins in the business.<\/p>\n Blackberry Ltd.<\/strong>\u00a0(NYSE: BB)<\/p>\n Blackberry made its name as a cell phone manufacturer, and essentially created what we now know as a smartphone, but many don\u2019t realize that Blackberry is actually providing mobile cybersecurity for government agencies worldwide. It\u2019s also playing security consultant. A major victory for Blackberry even came in when it won the right to sell its secure messaging tools to the U.S. government.<\/p>\n Blackberry\u2019s bets on less popular emerging tech plays has really paid off, according to its latest earnings rounds, and as one of the companies that essentially paved the way for digital gaming, it\u2019s sure to remain a favorite innovator among innovators for some time.<\/p>\n Wynn Resorts, Limited<\/strong>\u00a0(NASDAQ:WYNN)<\/p>\n Wynn Resorts is another iconic\u00a0Las Vegas\u00a0staple. Founded by\u00a0Steve Wynn\u00a0following the sale of Mirage Resorts to MGM Grand, Wynn has become one of the strongest gaming stocks on the market, largely thanks to its\u00a0Macao\u00a0assets as the region continues to produces tremendous revenue for<\/p>\n Despite some management setbacks, resulting in the replacement of\u00a0Steve Wynn\u00a0for\u00a0Matthew Maddox, Wynn has performed well against its competitors, even after a larger industry-level decline in mid-2018. And with\u00a0Macao\u00a0casinos poised for a rebound, Wynn Resorts is one to watch moving forward.<\/p>\n