Self-proclaimed “King of Casino,” Swedish mobile gaming company LeoVegas Group has announced a market access agreement with Caesars Entertainment, Inc. that will enable it to offer online casino in New Jersey in 2022.
Courtesy of the deal with the Reno, Nevada-based hotel and casino entertainment giant, the company will make its inaugural entry into the U.S. iGaming market via the Garden State while also debuting its proprietary Rhino technical platform. The Stockholm-headquartered firm expects to welcome its first customers in the northeastern U.S. state during the first half of next year.
The platform, which is currently responsible for over ten brands and is licensed for seven jurisdictions, is to be certified by regulatory authorities in New Jersey where according to the Division of Gaming Enforcement (DGE), there are currently seven approved internet gaming sites, including Borgata Hotel Casino & Spa, Caesars Interactive Entertainment, Golden Nugget Atlantic City, Hard Rock Hotel & Casino, Ocean Resort Casino, Resorts Casino Hotel Atlantic City, and Tropicana Casino Resort Atlantic City.
More than 20 brands currently offer online casinos in the state where the gaming tax is 17.5 percent of gross gaming revenue (GGR). The strategic decision for entry into the U.S., which LeoVegas Mobile Gaming Group expects to become “the world’s largest regulated gaming market,” is lauded by the operator as “another huge milestone,” per a live announcement.
Right time & partner:
Chief Executive Officer for LeoVegas, Gustaf Hagman stated the following regarding the launch in a Monday, May 17, 2021, official press release…
“We are proud to finally be able to share our plans to establish ourselves in the USA. We think the time and partner are right to launch ‘The King of Casino’ in the USA.”
The CEO went on to say that the American market has “immense growth potential” with players just now discovering online gaming.
“In the USA, too, we will focus on what we are best at – offering an innovative, world-class gaming experience directly in mobile phones. Establishing ourselves with our proprietary platform is a strategic decision, and we know from other markets that having full control over our technology is a key competitive advantage,” Hagman added.
Responsible for a multitude of iGaming sites including its flagship site LeoVegas.com, alongside RoyalPanda.com, BetUK.com, SlotBoss.co.uk, Bingos.co.uk, and 21.co.uk, while also making its LiveCasino.com and GoGoCasino.com online domains accessible to players in Finland, in its Q4 and FY 2020 report the group declared 2020 another record year for the company with a “strong close.”
According to the February 11, 2021 earnings publication (pdf), the group lauded the period as its “strongest fourth quarter ever,” in spite of “frequent changes” to the gaming requirements in their markets, not to mention operating in the midst of a global pandemic. Per the report, for the full year 2020, LeoVegas saw adjusted EBITDA (earnings before interest, taxes, and amortization) growth of 25 percent while its operating cash flow swelled by nearly 90 percent. A continued rise in customers, which grew to a record level of 24 percent, drove an increase of the company’s revenue “organically” by 14 percent. Meanwhile, during the fourth quarter, adjusted EBITDA also swelled to EUR 11.5 m, an increase of 25 percent.
At the time of publication, parent company LeoVegas AB (LEO:Stockholm) shares were trading at 39.78-0.36 (-0.90 percent) on Nasdaq Stockholm Stock exchange, down slightly from a 40.14 previous close.