The shares of the leading provider of technology and services, powering betting and gaming operators, Bragg Gaming Group, increased Wednesday, after one of its largest shareholders sent a letter, supporting different business combinations, including partial or full sale of the company’s assets. The letter was sent by Jeremy Raper, the founder of Raper Capital, a company that is in charge of some 375,000 shares in Bragg and the second-largest disclosed investor in the company.

In his letter, sent to CEO Matevz Mazij, the expert spoke about Bragg’s acquisition of Oryx a few years ago, explaining that its current stock price is 25% lower when compared to that period. Raper acknowledged the company has seen “chronic underperformance,” regardless of its listing on NASDAQ dating back to 2021. Raper Capital’s founder explained in his letter to Bragg: “Suffice to say, the public markets have had plenty of opportunity to appraise our Company’s growth story, over time, and yet the record demonstrates that it will not, or cannot, accord even the lower bounds of what most shareholders would consider fair value.”

According to Raper, Bragg can ensure proper returns for the shareholders via a partial or full sale of company assets. He encouraged the company to pursue all possible strategic alternatives, including the aforementioned sale that can help maximize the value for all of its shareholders. Moreover, Raper said he believes that minority shareholders would agree that this would be the best course for Bragg.

“As such, it is evidently clear that a third-party sale of the business is the only way to crystallize a proper return for the underlying business value that you, and legacy management, have created.“

Jeremy Raper, founder of Raper Capital

Proposed Sale To “Unlock Latent Value” for Shareholders

Raper Capital’s founder compared the proposal to similar recent transactions within the iGaming vertical that have taken place over the last 24 months. He uncovered that on average, transactions similar to the proposed one were 19x EV/EBITDA, while a median multiple was approximately 15x EV/EBITDA.

Speaking about Bragg’s shares at the time of writing, Raper said that they trade barely at 5.5x EV/EBITDA. He said that even with a conservative 12x EV/EBITDA Bragg’s share would be worth $13.5 per share based on current year numbers or $18 per share on FY24E numbers.

Toward the end of his letter, Raper said that he plans to continue to be a long-term shareholder of Bragg. “By calling for a sale of the company now, I only seek to preserve, and finally unlock, that latent value for the benefit of all stakeholders,” he explained.

Earlier this month, Bragg confirmed that its current chief operating officer and president, Lara Falzon, gave resignation notice. At the time of the announcement, the company confirmed that she would step down from the two roles, effective from the end of the year.

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Activist investor HG Vora Capital Management has announced its stake in the gambling group 888, following the recent disclosure by a group of former executives from rival bookmaker GVC, currently rebranded as Entain. Financial Times reported that the New York-based fund revealed that it holds a 5.5% stake in 888, with shares owned directly by the fund and its head, Parag Vora. 

Consortium of Former Entain Executives Sparks Potential Shake-Up of 888

The emergence of both HG Vora and FS Gaming Investments, the consortium of former Entain executives, has set the stage for a potential shake-up of 888. The company’s stock price has struggled over the past year due to compliance issues and rising interest rates, which negatively impacted its £1.95 billion ($2.5 billion) debt-fueled deal to acquire William Hill.

Earlier this year, 888’s CEO, Itai Pazner, was dismissed when the board announced that £50 million ($63.3 million) of customer accounts had been frozen due to anti-money laundering failures. The accounts have since been reinstated. With the company currently being led on an interim basis by Chairman Lord Jon Mendelsohn, 888 is actively searching for a new CEO. 

FS Gaming Investments is not only advocating for a board seat but has also suggested that Kenny Alexander and Stephen Morana, both former Entain executives, could potentially lead the company.

HG Vora Capital Management supports the efforts to bring in a new management team at 888, with Alexander as the potential leader. 

HG Vora Capital Management’s Gambling Industry Investments

HG Vora Capital Management has a history of involvement in the gambling industry, having previously invested in US operators Penn National Gaming and Pinnacle Entertainment before their merger in 2018. It also disclosed a 5% stake in William Hill shortly before its acquisition by Caesars Entertainment in 2020.

At the same time, insiders suggest that FS Gaming Investments’ main focus is on achieving a faster integration between 888 and William Hill to reduce costs and address the group’s £1.6 billion ($2 billion) debt. The consortium includes Lee Feldman, the former chair of GVC, investment bank B Riley Financial, and its investment chief Daniel Shribman. GVC acquired Ladbrokes in 2017 and has since rebranded as Entain.

Despite the challenges faced by 888, the company’s board remains confident in its long-term strategy to create value for shareholders. The company is committed to updating and engaging with all shareholders as it continues to focus on its strategic and operational priorities.

Just this week 888 Holdings completed the sale of its Latvian assets to Paf for €28.3 million ($30.6 million), allowing 888 to streamline operations and concentrate on strategic growth while Paf expands its presence in the Latvian market and solidifies its position in the region.

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A month ago, Los Angeles lawyer Sara King made headlines after using a $10 million business investment to live in luxury. Now, amid an ongoing lawsuit, King claims that her husband, the Iranian royal Kamran Pahlavi, forced her to waste the money, The Daily Beast reported.

Thanks to her relationship with Pahlavi, King was introduced to the Swiss banker Laurent Reiss. Reiss, though his LDR International company, provided King’s personal business, King Family Lending (KFL), with a $10.2 million investment.

KFL allowed customers to receive quick cash for collateral such as cars, jewelry and luxurious items.

However, King did not use the money to fund third-party loans, as originally agreed with Reiss. Instead, LDR International alleges, the woman used the money to move into the Wynn Las Vegas resort and live and gamble there for half a year.

As a result, LDR International launched a lawsuit against King. The prosecution claims that King had a gambling problem and would bet ludicrous amounts of money on slots in Vegas. Amid the ongoing lawsuit, King came forward with a new claim, saying that it was, in fact, Pehlavi who forced her to do all of this.

Pehlavi is the grandson of the Shah’s twin, Princess Ashraf. According to King and her defense, the Iranian royalty understood that his wife was good at slots and made her play. The woman’s attorneys allege that she loved her husband so much that she didn’t question him and kept on playing.
According to the defense, Pahlavi hoped that King, who allegedly called herself “the slots whisperer,” would earn money to cover a debt to LDR International.

“She Ruined My Life and Now This?”

Pahlavi was outraged by King’s claims. In an interview with The Daily Beast, he slammed his wife’s allegations and said that she was an addict. Pahlavi noted that forcing someone to gamble is a ludicrous idea and noted that he find it difficult to get his wife off the machines.

What kind of a person would push his wife to gamble with his best friend’s money? How does that make any sense?

Kamran Pahlavi

Pahlavi noted that King continued to play even when he wasn’t around.

The Iranian royal says that he has now moved to Morocco to escape from King. He has filed for divorce and hopes to cut his ties with his problem gambler wife.

“She betrayed me. Lied to me. Stole from me. Embarrassed me. Humiliated me. That’s not bad for a reason to break up,” Pahlavi told The Daily Beast in an earlier interview.

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