Hacksaw Gaming's Strategic IPO Move: Riding the Wave of European iGaming Success

When you look at the rapid evolution of Europe’s iGaming landscape, few companies have captured the industry’s attention quite like Hacksaw Gaming. This Malta-based studio has transformed from a scrappy startup founded in 2018 into a powerhouse that’s now preparing to make its debut on Nasdaq Stockholm, and frankly, it’s been quite the journey to watch unfold.

From Startup to Stock Market: Hacksaw’s Remarkable Trajectory

Hacksaw Gaming’s story begins just seven years ago when the company was established with a clear vision: create innovative video slots and scratchcards with a mobile-first approach. What’s particularly impressive is how quickly they’ve scaled. By 2019, they were already releasing their first Pocketz slot and picking up awards at SiGMA, one of the industry’s most prestigious conferences. That same year, they achieved ISO certification, setting the foundation for the rapid expansion that would follow.

The company’s growth trajectory reads like a textbook case of strategic market expansion. In 2020, they announced slots with massive jackpots, and by 2021, they were expanding into Greece, Denmark, and Spain. The regulatory approvals kept coming: a Class II license from Romania’s ONJN in 2022, a providers license for Ontario from the AGCO, and a Software Supply license from the Isle of Man. Each approval opened new revenue streams and validated their technology platform across different jurisdictions.

Now, with the company announcing its intention to go public on Nasdaq Stockholm, we’re seeing the natural evolution of a business that has consistently delivered on its promises. The IPO, expected to complete in the second quarter of 2025, represents more than just a capital-raising exercise – it’s a statement about Hacksaw’s confidence in its ability to compete on the global stage.

Record-Breaking Financial Performance Drives Public Offering

The numbers behind Hacksaw’s IPO decision are pretty compelling. The company reported a staggering 105% increase in annual revenue, jumping from approximately €67 million in 2023 to €137 million in 2024. What’s even more impressive is their ability to maintain profitability while scaling – their EBIT margin actually increased slightly from 83% to 84% during this period of explosive growth.

These figures put Hacksaw in an enviable position compared to many tech companies contemplating public offerings. While global IPO activity has generally been subdued due to market volatility, Hacksaw’s strong fundamentals and consistent profitability should make it an attractive proposition for investors looking for exposure to the growing iGaming sector.

The structure of the offering is also worth noting. Rather than issuing new shares to raise capital, the IPO will consist solely of existing shares being offered by current shareholders. This approach suggests the company isn’t desperately seeking capital for operations but rather providing liquidity for early investors and employees while creating a public market for the stock.

Christoffer Källberg, Group CEO of Hacksaw, captured the sentiment well when he stated that they’ve established themselves as a leading supplier to online casinos active on the global iGaming market thanks to their strong, technology-driven offering and capabilities that enable them to create the best possible experience for their customers.

Strategic Market Expansion and High-Profile Partnerships

What’s really fascinating about Hacksaw’s recent moves is how they’ve been systematically expanding into key European markets through strategic partnerships. The deal with LiveScore Group in January 2025 was particularly significant, given LiveScore’s strong UK performance – the group saw revenue surge 78% to £139 million in the twelve months to March 2024.

This partnership introduced popular Hacksaw titles like “Wanted Dead or a Wild” to LiveScore and Virgin Bet platforms, demonstrating how content providers can leverage established operators’ distribution networks to reach new audiences. The timing couldn’t have been better, as LiveScore was focusing on enhancing player engagement and strengthening its competitive position following its exit from certain markets, including the Netherlands.

The Italian market expansion through Daznbet represents another smart strategic move. Italy’s online gambling market is experiencing consistent growth, with expected revenue of $5.7 billion in 2024 and projected annual growth of 10%. Crypto online gaming is also on the rise. Hacksaw’s partnership with Daznbet, which began in 2023, now features 50 Hacksaw Gaming titles including hits like “Wanted Dead or a Wild,” “Le Bandit,” and “Fist of Destruction”.

Marcus Cordes, CEO of Hacksaw Gaming, emphasized Italy’s importance as a key market, and you can see why. The country’s online casino revenues are expected to reach $3.7 billion and grow 5.49% by 2029. For a company like Hacksaw, establishing a strong presence in Italy provides a solid foundation for broader European expansion.

Technology Platform and Competitive Positioning

From a technology standpoint, Hacksaw has built their entire operation around HTML5, ensuring their games work seamlessly across all devices and platforms. This mobile-first approach has proven prescient, as mobile gaming continues to dominate the iGaming landscape. Their proprietary features like Stack ‘n’ sync, Duel reels, and Echospin have helped differentiate their content in an increasingly crowded market. The company’s focus on slots and instant win games rather than table games or live casino options might seem limiting, but it’s actually a smart strategic choice. The slots market generates the highest margins and requires less complex technology infrastructure compared to live dealer games. This focused approach has allowed Hacksaw to perfect their offering rather than spreading resources across multiple verticals.

When you compare Hacksaw to established competitors like Playtech, the contrast is striking. Playtech, founded in 1999, went public on the AIM market in 2006 at a valuation of approximately $950 million. However, Playtech’s journey hasn’t been without challenges – their stock suffered a one-day fall of over 40% following the passage of the Unlawful Internet Gambling Enforcement Act of 2006. This highlights the regulatory risks that all iGaming companies face, making Hacksaw’s careful approach to regulatory compliance even more valuable.

European iGaming Market Context and Regulatory Landscape

The European iGaming market that Hacksaw is operating in is substantial and growing. The EU iGaming market is expected to generate $46.74 billion in 2024 with a compound annual growth rate of 4.43% from 2024-2029. Germany, which became regulated just a few years ago, was already the third largest market in the EU by 2022, with online gambling revenue expected to reach €3.3 billion in 2024.

Italy’s regulatory framework provides an interesting case study for how Hacksaw navigates different jurisdictions. The country regulates various forms of gambling, including casinos, sports betting, lotteries, and online gambling, with a clear legal framework aimed at balancing revenue generation and public welfare. This regulatory clarity makes Italy an attractive market for operators like Hacksaw who have invested in proper licensing and compliance infrastructure.

The regulatory approval Hacksaw received from Spillemyndigheden, the Danish Gambling Authority, effective January 2025, further demonstrates their commitment to operating in properly regulated markets. This approach may limit their total addressable market in the short term, but it provides sustainable long-term growth prospects without the regulatory risks that plague operators in gray markets.

Competitive Landscape and Market Positioning

Looking at the broader competitive landscape, Hacksaw is entering public markets at an interesting time. Companies like Betsson AB, already publicly traded on the Stockholm exchange, provide a benchmark for valuation. Betsson reported revenue of 1.11 billion in 2024, an increase of 16.71% compared to the previous year. With a market cap of 26.14 billion SEK and a PE ratio of 13.04, Betsson demonstrates that profitable iGaming companies can command respectable valuations in public markets.

The sector has also seen significant M&A activity, with FDJ launching a tender offer for Kindred Group in February 2024. This consolidation trend suggests that well-positioned companies like Hacksaw could become attractive acquisition targets, providing additional upside potential for public investors.

What sets Hacksaw apart from many competitors is their integrated approach across the B2B value chain. Rather than just developing games, they’ve built a complete platform that handles everything from game development to distribution. This vertical integration provides better margins and more control over the customer experience, which is increasingly important as operators seek to differentiate themselves.

Market Expansion Strategy and Future Growth Opportunities

Hacksaw’s recent partnerships reveal a sophisticated market entry strategy. Rather than trying to build direct relationships with hundreds of small operators, they’re focusing on high-quality partnerships with established brands that can provide immediate scale. The LiveScore partnership gives them access to the crucial UK market, while Daznbet opens up Italy, and their content agreement with Casino Luzern demonstrates their ability to work within highly regulated jurisdictions like Switzerland.

This approach is particularly smart given the competitive dynamics in content distribution. Established operators like LiveScore are constantly seeking new content to engage players and differentiate their offering. For Hacksaw, these partnerships provide immediate distribution and validation, while for operators, Hacksaw’s innovative content helps attract and retain players in competitive markets.

The company’s geographic expansion has been methodical and strategic. Starting with core European markets where regulation is clear and enforcement is predictable, they’ve built a foundation that can support broader international expansion. Recent regulatory approvals in Denmark and other jurisdictions suggest this expansion will continue.

Industry Trends and Technology Evolution

The iGaming industry is experiencing several trends that play to Hacksaw’s strengths. Mobile gaming continues to grow, with players increasingly expecting seamless experiences across devices. Hacksaw’s HTML5-based technology platform positions them well for this trend. The demand for innovative content is also increasing, as operators seek to differentiate themselves in saturated markets. The shift toward regulated markets across Europe has created opportunities for compliant operators like Hacksaw while pressuring those operating in gray areas. Germany’s regulation in 2021, Denmark’s licensing regime, and Italy’s established framework all provide clear paths to market for properly licensed content providers.

Looking ahead, the integration of new technologies like artificial intelligence for personalized gaming experiences and blockchain for transparency could provide additional growth vectors. Hacksaw’s technology-focused approach and strong financial position should allow them to invest in these emerging areas.

The IPO Landscape and Investor Appetite

Hacksaw’s timing for going public is particularly interesting given the current IPO environment. While overall IPO activity has been subdued globally, profitable technology companies with clear growth trajectories have found receptive markets. The fact that Nasdaq Stockholm has already concluded that Hacksaw meets listing requirements, with final approval contingent only on formal application and distribution requirements, suggests strong institutional support.

The offering structure, targeting retail investors in Nordic countries plus institutional investors globally, should provide good liquidity and broad-based ownership. This geographic focus makes sense given Hacksaw’s European operations and the familiarity of Nordic investors with the iGaming sector.

Patrick Svensk, Chairman of Hacksaw’s Board, noted that they’ve come a long way in meeting their objectives to establish Hacksaw as a leading B2B iGaming supplier, and they are in a great position for continued strong growth and profitability. This confidence seems well-founded given their track record and market position.

The company’s path from startup to IPO candidate in just seven years is remarkable, particularly in an industry that requires significant regulatory compliance and technology investment. Their ability to maintain high margins while scaling rapidly suggests a sustainable business model that should appeal to growth-oriented investors.