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Almost a month after it was hit by a cyber attack, Toronto-based iGaming supplier Bragg Gaming Group has confirmed that the situation is fully resolved. In a press release published last week, the company reported that there was no compromise of customer data and no operational disruptions as a result of the incident.
The breach, which was detected on August 16, led to immediate action to control risks. Bragg engaged independent cybersecurity experts for a thorough investigation, which revealed that the intrusion was confined to its internal systems.
Bragg assured its operator partners about the security of its game titles, stating that the incident did not negatively affect revenue or profitability. “There continues to be no indication that any personal information was affected and the breach has had no impact on the ability of the company to continue its operations,” it added.
New debt facilities secured
While sharing updates on the cybersecurity incident, Bragg also announced a new financing agreement with the Bank of Montreal (BMO). This deal allows Bragg to access credit facilities totaling up to $6 million, aimed at supporting its ongoing working capital and general corporate needs.
With this agreement, Bragg has fully repaid a previous promissory note tied to entities controlled by Doug Fallon, marking a clear shift in the company’s financial strategy. This new partnership with BMO not only replaces prior debts but also enhances Bragg’s financial position.
Robbie Bressler, CFO of Bragg Gaming Group, expressed satisfaction with the new relationship, stating, “This new credit facility strengthens our balance sheet and provides us with a flexible capital structure to execute our strategic plan. The ability to secure financing from a major North American bank underscores the confidence in our business and our long-term growth prospects. We look forward to a long and successful partnership with BMO.”
The BMO Facilities include a first-ranking security interest over the company’s assets and certain subsidiaries. They come with specific covenants, requiring Bragg to maintain a Total Funded Debt to EBITDA ratio below 2.50:1.00 and a Fixed Charge Coverage Ratio of at least 1.25:1.00, which will be assessed quarterly.
Bragg plans to draw on these facilities in Canadian dollars, anticipating borrowing costs of 6.9%–7.9% for Prime-based loans or 5.9%–6.9% for CORRA-based loans. Management believes these costs will be significantly lower than those associated with the previous debt.
“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,” said Matevž Mazij, CEO of Bragg Gaming Group.
“With our cybersecurity incident contained and our borrowing costs cut by more than half, we are laser-focused on executing our strategic shift toward higher-quality earnings. The Company is prioritizing margin and cash generation over lower-margin revenue, and synergies realized post-quarter end to become a leaner operation.”
Key partnership positioning Bragg for long-term growth
Recent months have also seen Bragg Gaming Group make strategic moves to boost its long-term growth prospects through partnerships with major operators like Hard Rock Digital and Fanatics. There have also been leadership changes in both AI and innovation.
In its second-quarter report for 2025, Bragg announced revenues of €26.1 million, reflecting a 4.9% increase from €24.9 million in the same quarter of 2024. The gross profit also saw a notable rise, climbing 10.8% to €13.7 million.
However, adjusted EBITDA decreased by 4.3% year-over-year to €3.5 million, leading to a reduction in the adjusted EBITDA margin from 14.5% to 13.3%. The company experienced a widening operating loss, increasing to €2.3 million from €1.2 million.
Speaking at the time, Mazij emphasized that the company is prioritizing cash flow, integration, and optimizing margins as it moves forward.
Source: NEXT.io
