Bragg Gaming Group has completed its acquisition of Drayton International for $9 million and appointed gaming investor Matt Davey as Non-Executive Chairman of its Board of Directors.
Bragg acquired all outstanding Drayton securities in exchange for 4.5 million Bragg common shares. No cash consideration was paid as part of the acquisition.
Certain former Drayton shareholders receiving Bragg shares are subject to lock-up agreements lasting as long as 24 months. Twenty-five percent of the restricted shares will be released at each of the 12-, 15-, 18- and 24-month anniversaries of closing.
The acquisition expands Bragg’s presence in regulated U.S. sports betting and horse racing markets. Drayton brings technology, operating capabilities and equity interests in several licensed gaming studios.
Bragg expects the studio investments to increase its access to proprietary games and features that can be distributed through its existing content hub and player account management platform.
Drayton also provides Bragg with an entry into advance deposit wagering, or ADW, in the U.S. horse racing market. Under this model, customers fund wagering accounts before placing bets on races.
Bragg plans to combine Drayton’s distribution infrastructure and studio portfolio with its existing gaming content and technology. The company is also beginning to use AI-assisted development tools to accelerate the production of new games and platform features.
In connection with the acquisition, 751,445 subscription receipts previously sold for $1.73 each were converted into an equal number of Bragg common shares and warrants.
Each warrant allows the holder to purchase one additional Bragg share for $2.16 during a 36-month period, subject to provisions that could accelerate the expiration date.
The securities remain subject to Canadian statutory holding requirements and contractual four-month lock-ups. They are also considered restricted securities under applicable U.S. securities rules.
Bank of Montreal provided its required consent for the acquisition under Bragg’s existing senior credit facility. The lender also renewed the facility for an additional year on terms consistent with the existing arrangement.
Davey becomes Chairman after the transaction and private placement. Through Tekkorp Capital, he owns approximately 10.09% of Bragg’s outstanding common shares on a non-diluted basis.
Davey founded Tekkorp Capital and has experience investing in and building gaming businesses, particularly in U.S. sports betting and online gambling. He succeeds Holly Gagnon, who will remain a Bragg director.
Gagnon is also set to join the American Gaming Association’s Gaming Hall of Fame as part of its 2026 class.
Bragg CEO Matevz Mazij resigned from the board after failing to receive a majority of votes cast for his re-election at the company’s June 2026 annual meeting. He will continue serving as CEO.
KEY QUOTES:
“Drayton gives Bragg a direct, credible entry into the U.S. Advance Deposit Wagering market, a diversified portfolio of studio equity interests and proprietary distribution infrastructure that materially expands our content scale.”
“Beyond this transaction, our studios continue to expand the breadth of games and features across the platform, including the early application of AI-assisted development tools to help us bring new content to market faster.”
Matevz Mazij, CEO of Bragg Gaming Group
“Matt is highly respected throughout our industry and brings deep strategic, operational and governance experience.”
“His track record speaks for itself, but what stands out to me is that he’s not just advising Bragg, he’s now genuinely invested in where we go next.”
Holly Gagnon, Director and Former Chair of Bragg Gaming Group
“Bragg has built the foundations needed for a powerful platform and distribution business: real content, real technology, and real licences in highly regulated markets.”
“The next chapter is about disciplined execution, focus, balance sheet strength, operating cash flow, and revenue growth driven by letting the product do the talking.”
Matt Davey, Non-Executive Chairman of Bragg Gaming Group