Bragg Gaming Group has strengthened its financial footing with a new credit facility of up to $6 million from the Bank of Montreal (BMO), a move the iGaming technology provider says will support its U.S. growth strategy and enhance liquidity.
Financing Deal Replaces Prior Debt
The agreement, announced earlier this week, replaces a promissory note previously owed to entities tied to company founder Doug Fallon. Bragg said the new facility will improve its balance sheet, reduce borrowing costs, and free up capital for working capital and general corporate purposes.
The financing is structured as a demand facility, meaning repayment can be requested at any time. If not called, it matures one year after execution, with potential extensions at BMO’s discretion. The deal is secured against Bragg’s assets and includes standard financial covenants, such as quarterly leverage and coverage ratio tests.
“Securing financing from a major North American bank underscores the confidence in our business and long-term growth prospects,” said Robbie Bressler, CFO of Bragg Gaming Group.
Lower Costs, More Flexibility
Bragg expects to draw most of the funds in Canadian dollars, with interest rates projected between 5.9% and 7.9%, depending on market conditions and leverage. Management estimates the company will pay less than half of its prior annual debt costs, freeing up cash for strategic initiatives.
Growth Outlook Remains Strong
The financing aligns with Bragg’s ongoing U.S. expansion. In July, the company launched its Remote Gaming Server (RGS) technology in New Jersey, Michigan, and Pennsylvania through a partnership with Fanatics Casino, bringing proprietary content to three of the most active iGaming markets.
CEO Matevž Mazij said the deal is part of a broader plan to drive profitable growth:
“Securing this BMO facility represents a critical milestone in our strategic plan to strengthen Bragg’s financial foundation and accelerate value creation for our shareholders.”
Mazij added that Bragg has already realized €2 million ($2.35 million) in annualized synergies and remains on track to achieve a 20% adjusted EBITDA margin in the second half of 2025.
Moving Past Cybersecurity Concerns
The company also addressed the cybersecurity incident disclosed in August, noting that external experts have confirmed the breach was contained with no evidence of compromised personal data or material financial impact.
With fresh liquidity, reduced debt costs, and operational challenges addressed, Bragg says it is well-positioned to solidify its role as a leading B2B supplier in the online gaming sector.
