Charles HayesTuesday, Jul 1, 2025 2:10 pm ET
2min read
The entertainment sector’s next disruption is unfolding in the unlikeliest of places: the casino table. Galaxy Gaming’s (OTC: GLXZ) recent multi-year licensing deal with Hasbro (NASDAQ: HAS) to bring MONOPOLY, YAHTZEE, and BATTLESHIP to global casinos marks a strategic move that could redefine table game innovation and solidify Galaxy’s position as a leader in branded gaming. This partnership leverages Hasbro’s iconic intellectual property (IP) to tap into a $50+ billion global casino market, while Galaxy’s unmatched distribution network and table game expertise create a moat against competitors. For investors seeking exposure to entertainment sector disruption, this is a buy at current levels.
The Power of Nostalgia Meets Casino Innovation
Hasbro’s brands—MONOPOLY, YAHTZEE, and BATTLESHIP—are cultural touchstones with over 100 million players worldwide. Translating these into table games is a masterstroke. Unlike slot machines, which rely on luck alone, these games offer strategic gameplay mechanics that can attract both casual and experienced casino patrons. For example, BATTLESHIP’s tactical ship placement could be reimagined as a betting-based strategy game, while MONOPOLY’s property-trading dynamics could involve dynamic odds based on player choices.
Galaxy’s role is pivotal here. The company’s 131 global licenses—including 28 U.S. states—allow it to deploy these games in virtually every major casino market. CEO Matt Reback’s emphasis on “innovative gameplay experiences” is no accident: Galaxy’s proprietary technology, such as its real-time odds displays and player engagement tools, ensures these games won’t just be nostalgic throwbacks but data-driven, high-margin revenue streams for casinos.
Market Differentiation: A Niche with Scale
While Hasbro’s broader “Playing to Win” strategy includes partnerships like Aristocrat Technologies (slots) and Evolution (online/live casino), Galaxy’s exclusive focus on table games creates a clear niche. Table games hold a 35-40% share of global casino revenue, yet they’ve lagged in innovation compared to slots and digital gaming. By marrying Hasbro’s IP with its distribution reach, Galaxy is poised to capture a first-mover advantage.
Consider the timing: the first games will debut at the Global Gaming Expo (G2E) 2025, an industry bellwether where operators greenlight new games for 2026 and beyond. This event will act as a catalyst, allowing Galaxy to showcase its IP-driven products to thousands of decision-makers. The synergy here is clear: G2E attendance correlates with 70% of annual table game orders, making this launch a potential inflection point for revenue growth.
Risks and the Path to Profitability
The deal isn’t without hurdles. Galaxy’s pending acquisition by Evolution Malta Holding Limited introduces integration risks, and regulatory delays in states like Nevada or New Jersey could slow deployment. However, these are manageable: Evolution’s expertise in online gaming could complement Galaxy’s table game focus, while Hasbro’s corporate reputation (it’s a 2025 JUST Capital Industry Leader) may ease regulatory scrutiny.
Financially, the partnership’s success hinges on incremental revenue streams. Hasbro’s licensing fees are likely structured as a percentage of gross gaming revenue (GGR), meaning Galaxy’s margins should expand as casinos adopt the games. Historically, branded table games command 5-10% higher GGR per table than traditional games—a margin that could amplify as these IPs gain traction.
Investment Thesis: A Buy with Disruption Potential
Galaxy’s valuation is currently depressed, trading at just 8x forward EBITDA despite its 131 licenses and IP partnerships. By contrast, Hasbro trades at 15x forward P/E, reflecting its broader brand portfolio. The Hasbro deal could unlock a re-rating as analysts recognize Galaxy’s potential to monetize $1.5 billion+ in annual table game revenue from this IP alone.
For investors, this is a high-conviction buy for three reasons:
1. Defensible Moat: Exclusive Hasbro IP and global licenses create barriers against competitors.
2. Catalyst Timing: G2E 2025 and 2026 rollouts provide near-term visibility.
3. Sector Disruption: Branded table games could capture a growing share of casino revenue, mirroring how Marvel IPs dominate theme parks.
Conclusion
Galaxy Gaming’s partnership with Hasbro isn’t just a licensing deal—it’s a blueprint for leveraging nostalgia-driven IP in mature markets. With its distribution scale and focus on table game innovation, Galaxy is positioned to capitalize on a $50 billion opportunity while competitors remain siloed in slots or online gaming. Investors who act now may secure a stake in a company set to dominate the next era of entertainment-driven gaming. Buy GLXZ on dips below $0.80/share, with a 12-month price target of $1.20.
