In what has been an exciting time for the online gambling industry, with a lot of merger and acquisition activity over the last couple of years, helped by the ever-growing US market, another one of the major players has made a significant move.
MGM Resorts International, which has a joint-venture with conglomerate Entain – BetMGM, has swooped with an offer for European-based online gambling company, LeoVegas.
The company, which has headquarters in Stockholm, has received an offer amounting to $607 million as it looks to strengthen its position in the wider global online gambling market.
Further opportunities for growth
While MGM has a well-established global land-based gambling business, its online arm is relatively new – indeed, BetMGM was only launched in 2018, though it is considered to be one of the premier sportsbooks (which also has an online casino), in the US.
However, with the expected acquisition of LeoVegas, it will further help to add credibility to its standing in the wider online industry as it looks to enhance its reputation.
MGM CEO Bill Hornbuckle revealed following the bid: “Our vision is to be the world’s premier gaming entertainment company and this strategic opportunity with Leo Vegas will allow us to continue to grow our reach throughout the world.
“We have achieved success with BetMGM in the US and with this acquisition in Europe we will expand our online gaming presence globally.”
Founded in 2011, LeoVegas has quickly become one of the most respected niche online gambling companies in Europe and has licenses with the MGA (Malta Gaming Authority) and UKGC (United Kingdom Gambling Commission), in addition to six other territories.
An attractive prospect for both companies
Should this takeover be approved, it would perhaps make sense for parties, with LeoVegas CEO Gustaf Hagman particularly excited about what the future holds.
“MGM is also very clear in its release that this acquisition will provide a unique opportunity for LeoVegas to create a scaled global online gaming business,” he said.
“And the board believes that the logic – the industrial logic, the strategic fit between LeoVegas and MGM – is very attractive and should serve both the companies and its employees very well in the future.”
It is also anticipated that Kambi will stay on as the sports betting technology supplier for LeoVegas following the takeover with Hagman commenting: “We have a long-term relationship with Kambi, and we are very happy with the support and the product that we got from Kambi, so yes, we will continue doing that. And hopefully, they will help us now when we are entering new countries, making acquisitions.”
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