Bragg Gaming has a new chair in Matt Davey, the Tekkorp Capital figurehead who believes the market has fundamentally misjudged the Slovenian B2B supplier’s potential.
Davey’s firm Tekkorp Capital now owns 10.09% of Bragg following its all-stock acquisition of US B2B business Drayton International, making him a significant force in the company’s direction.
Speaking from his ranch in Montana, the Darwin-trained electrical engineer argued that Bragg’s technology and product offering are of very high quality, despite persistent negative market sentiment.
Bragg has endured 11 consecutive quarters of losses, and a 2024 strategic review aimed at improving the company’s low share price ultimately concluded without any deal being struck.
CEO Matevž Mazij also drew attention after reducing his own stake in the company, citing “urgent personal circumstances”, a move that did little to restore confidence among an already restless shareholder base.
Davey is convinced, however, that North American iGaming content represents a transformative opportunity, saying: “We definitely felt there was an opportunity to really lean in more around the North American focus, particularly around content, and that’s a set of expertise that we can bring to the table.”
He argued that investors have “completely misunderstood” the value of iGaming content, pointing to roughly 20% annual growth in North American iGaming markets over the last decade as evidence of a long-term structural opportunity.
Davey was direct about what must change in how Bragg communicates its strategy, stating the company “needs to do a better job of explaining the story behind it and the focus and the strategy involved with that.”
Bragg shed 31% of its workforce across two rounds of redundancies this year, generating €10.5 million in annual cost savings, though sources indicate the cuts have negatively affected company morale.
The departures were in part triggered by the 2023 loss of key client BetCity, which was acquired by Entain, leaving a significant gap in Bragg’s revenue base that management has been working to address ever since.
Davey framed the redundancies as a necessary recalibration, saying: “A company needs to be fit and healthy. You need to make certain your operating cost base matches or supports your revenue line.”
Earlier this year Bragg announced a partnership with iGaming data business Golden Whale, a move positioned as foundational to building what the company calls the “bragg brain” AI initiative.
Davey described two distinct vectors for AI integration: using generative tools to reduce costs and improve efficiency, and leveraging data insights to build better products and drive revenue growth.
On the thorny issue of shareholder relations, Davey was characteristically direct, saying: “I tend to think you get the shareholders you deserve and the share price you deserve.”
He concluded with a measured but optimistic outlook: “Bragg’s got a very interesting journey, but it should be over the next couple of years, rather over the next couple of quarters.”
