Mr. Matevz Mazij reports

BRAGG GAMING GROUP ANNOUNCES STRATEGIC RESTRUCTURING TO REDUCE COST STRUCTURE AND IMPROVE OPERATING PERFORMANCE

Bragg Gaming Group Inc. will conduct a strategic restructuring, including staff reductions, designed to realign the organization and thereby improve its overall cost structure, drive its earnings before interest, taxes, depreciation and amortization growth, and shorten the time required for it to achieve sustained net profitability.

Following the restructuring, Bragg will reduce approximately 12 per cent of its global work force. The company expects to incur restructuring costs related to this action of approximately 1.0 million euros associated with personnel-related termination costs in the first quarter of 2026, and it anticipates annualized cash savings from its staff reductions and other restructuring efforts to be approximately 4.5 million euros.

Bragg noted this amount does not include the expected positive impact of its recently announced initiative to utilize artificial intelligence to drive cost-efficiencies and improve operational excellence. The core of Bragg's strategic overhaul centres on an ambitious AI transformation plan, targeting an AI-first company by 2027. The plan is underpinned by clear 2027 targets, including ensuring an AI-enhanced product becomes standard in over 90 per cent of all launches and having more than three-quarters of Bragg's operational workflows impacted by AI.

"We believe that we are in the enviable position of having great technologies, assets, people and future prospects," said Matevz Mazij, chief executive officer at Bragg. "Nevertheless, given the increasingly complex regulatory compliance requirements, recent tax headwinds across key regions, emerging market opportunities, consolidation in the market and our increased focus on short-term profitability, we needed to take this step now of restructuring the company's staffing. After securing key hires in 2024 and 2025, we believe aggressive operating expense reductions and organizational realignment are the final steps to maintain our cash runway, drive EBITDA growth and achieve cash profitability. Our strategic restructuring is designed to capitalize on our strong foundation and position us extremely well for organic growth and concurrent market consolidation opportunities. We also believe that the company is currently undervalued by the market and that improving our cash profitability will help address this issue while also making us stronger in meeting consolidation opportunities as they arise."

The company plans to provide further insight into its new operating model and 2026 strategic initiatives when it announces preliminary unaudited results for the year ended Dec. 31, 2025.

About Bragg Gaming Group Inc.

Bragg Gaming Group is an iGaming content and platform technology solution provider serving on-line and land-based gaming operators with its proprietary and exclusive content, and cutting-edge player account management technology. Bragg Studios offer high performing and passionately crafted casino game titles using the latest in data-driven insights from in-house brands including Wild Streak Gaming, Atomic Slot Lab and Indigo Magic. Its proprietary content portfolio is complemented by a selection of exclusive titles from carefully selected studio partners under the powered by Bragg program. Games built on Bragg's remote games server technology are distributed through the Bragg Hub content delivery platform and are available exclusively to Bragg customers. Bragg's powerful, modular PAM technology powers multiple leading iCasino and sports book brands, and is supported by expert in-house managed, operational and marketing services. Content delivered by the Bragg Hub either exclusively or from the Bragg aggregated games portfolio is managed from a single back office, which is supported by a cutting-edge data platform and Bragg's award-winning Fuze player engagement tool set. Bragg is licensed, certified, or otherwise approved and operational in over 30 regulated iCasino markets globally, including in the United States, Canada, Latin America and Europe.

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