Bragg Gaming Group (NASDAQ: BRAG, TSX: BRAG) has entered into a US$6.0 million credit facility agreement with the Bank of Montreal, replacing its earlier note-based debt and signaling a pivotal shift in its financial strategy. In the same announcement, the global B2B iGaming content and technology provider confirmed that a cybersecurity breach detected in August 2025 has now been resolved, with no operational or financial impact.
The Toronto-based firm stated that the new credit facility supports its working capital needs and overall corporate growth strategy. The deal also signifies Bragg’s transition from private note financing to partnering with a major North American commercial bank, underlining a broader shift toward institutional-grade capital structuring.
What are the terms and implications of Bragg Gaming Group’s new credit facility with Bank of Montreal?
The newly secured credit facility offers improved financial terms over Bragg’s earlier obligations. Replacing the promissory note held by entities associated with Doug Fallon, the BMO agreement carries borrowing rates that are expected to be less than half of what the firm previously paid. Bragg will draw funds in Canadian dollars, with estimated borrowing costs ranging between 6.9% and 7.9% for Prime-based loans, and 5.9% to 6.9% for CORRA-based structures, based on the company’s leverage ratios.
The credit line is uncommitted and secured by a first-ranking security interest over all assets of Bragg and key operating subsidiaries. It is repayable on demand, upon certain insolvency events, or on the one-year anniversary of closing, unless extended at BMO’s discretion. The facility includes standard financial covenants, requiring Bragg to maintain a Total Funded Debt to EBITDA ratio of no more than 2.50:1.00 and a Fixed Charge Coverage Ratio of at least 1.25:1.00, both tested quarterly.
Standby fees on the undrawn portion of the credit line range from 0.75% to 1.75% per annum, further incentivizing disciplined cash management.
How does the debt restructuring align with Bragg Gaming Group’s margin and cash flow focus?
According to Chief Financial Officer Robbie Bressler, the partnership with Bank of Montreal delivers more than just reduced interest rates. It offers greater flexibility in how Bragg manages its capital structure. Bressler emphasized that the deal reflects institutional confidence in Bragg’s long-term strategy and creates a robust foundation for executing its ongoing transformation.
Chief Executive Officer Matevž Mazij added that the financial move aligns with the company’s pivot toward quality earnings and margin expansion. Bragg is actively shifting away from lower-margin revenue streams and instead prioritizing cash-generative business lines, particularly its proprietary content and technology platforms. The company has realized €2 million in annualized synergies post-quarter and is targeting a 20% Adjusted EBITDA margin in the second half of 2025.
With expanded operator partnerships—such as Fanatics and Hard Rock Digital—alongside leadership hires focused on AI and innovation, Bragg is positioning itself for a more resilient, value-focused growth trajectory. Mazij stated that the board and management are “fully aligned” in delivering long-term shareholder value while reinforcing the company’s operational efficiency.
What is the current status and business impact of Bragg Gaming Group’s cybersecurity breach?
The company also provided an update on a cybersecurity incident initially detected on August 16, 2025. The breach, according to Bragg, has been fully contained and resolved. The firm engaged third-party cybersecurity experts and followed industry-standard protocols to mitigate any threats.
Importantly, Bragg has confirmed that no personal information was compromised, and that the breach had zero impact on its ongoing operations. Revenue and profitability have remained unaffected, and the cost of incident response is not expected to materially impact financials.
The firm has already applied insights from the breach to strengthen its cyber defenses. It also assured customers that the security of its casino game titles remains uncompromised.
Given that Bragg operates in over 30 regulated iGaming markets across North America, Latin America, and Europe, cybersecurity remains a high-priority compliance domain. The company’s quick response and transparent reporting may help mitigate reputational risk in a sector often scrutinized for data security vulnerabilities.
How are investors reacting to Bragg’s capital shift and cybersecurity response?
Bragg Gaming Group’s share price saw a slight uptick following the announcement, as institutional investors digested the dual news of lower-cost financing and cyber risk containment. Analysts view the move to a large commercial bank facility as a sign of growing financial maturity. Replacing privately held debt with an institutional facility may improve credit perception and risk profile, particularly among long-term investors.
The reduced borrowing costs are expected to improve Bragg’s bottom line, freeing up capital for innovation, partnership expansion, and potentially M&A. While some analysts flagged the covenant thresholds as tight, most believe Bragg’s EBITDA momentum and cost discipline provide enough headroom for near-term compliance.
Importantly, with the cybersecurity incident resolved and no impact on platform performance, Bragg’s core operations remain intact. This has minimized disruption to its customer-facing services and supported continued revenue generation from flagship platforms like Bragg Studios, Atomic Slot Lab, and Wild Streak Gaming.
What comes next for Bragg Gaming Group as it targets 20% EBITDA margin and operational synergies?
Bragg is expected to further streamline its operations over the coming quarters, drawing from recent cost rationalization efforts that have already yielded €2 million in savings. Management’s focus on margin expansion suggests that future revenue growth will be closely tied to internal IP monetization, proprietary content, and enhanced platform tools such as its Fuze™ player engagement toolkit.
Its PAM (Player Account Management) platform and Bragg HUB content delivery ecosystem, already integrated across multiple regulated markets, are expected to underpin new client wins and drive incremental revenue. Analysts see the ongoing alignment of technology innovation, cost discipline, and capital optimization as central to Bragg’s mid-term valuation rerating.
Management also hinted at selective growth opportunities through partnerships, AI-led content development, and increased market penetration. As part of its roadmap, Bragg is preparing to methodically pursue “accretive” expansion opportunities while maintaining focus on margin-led growth.
The company has indicated its long-term vision is to be recognized not just as a content provider, but as a modular, high-ROI iGaming technology infrastructure partner.
Bragg Gaming Group’s ability to rebound from a cybersecurity event while simultaneously restructuring its debt profile underscores a larger strategic evolution. As the iGaming sector faces increased scrutiny around profitability, data security, and regulatory compliance, Bragg appears to be charting a more disciplined course—anchored by financial prudence, operational focus, and technology-forward growth levers. With its balance sheet strengthened and growth roadmap clearly articulated, the next few quarters will test whether the group can translate this momentum into sustainable shareholder returns and long-term market leadership.
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