10. LeoVegas (2018)
Financials: Q2 revenues soared 76% to €87.4m as the operator revised its 2020 target to €600m, although revenues took a hit in Q3 on UK regulation fallout
Strategy & impact: H1 characterised by heavy M&A but the operator has pledged to shift focus to compliance and meeting varied European regulations in coming quarters
Geographic reach: UK is now the biggest market for LeoVegas, closely followed by Sweden. The firm has just launched new bingo and sportsbook brands in UK
Influence & leadership: LeoVegas is still considered a leader in the Swedish market and remains one of the biggest mobile casino operators[/su_box]
As the biggest riser in the Power 50 last year, LeoVegas has further solidified its place among egaming’s elite with a prestigious top-10 position in the list for the first time. What makes this feat even more remarkable is just how far the Stockholm-headquartered firm was down the rankings just two years ago in 31st position. And in that short period of time LeoVegas has achieved a plethora of milestones that go some way to explaining how it’s achieved its meteoric rise.
Back in 2016 LeoVegas became a publicly listed company, less than five years after it was founded, and after making its debut on the Nasdaq Stockholm its valuation has since passed the $1bn mark. In this time LeoVegas has also diversified its product offering into additional verticals with a Kambi-powered sportsbook, expanded its reach into new gaming territories and completed its first round of acquisitions.
One of its biggest deals to date came earlier this year when the operator acquired online casino firm Intellectual Property & Software Limited (IPS), 40th in the Power 50 last year, for £65m. The all-cash transaction has helped strengthen LeoVegas’ position in the UK market, adding to the Royal Panda business it acquired late last year for €60m. LeoVegas has also unveiled a range of new UK-facing brands in recent months, including legs11.co.uk and BetUK.
However, the operator’s UK business has hardly been achieving its full potential. According to LeoVegas’ Q3 report, organic growth for LeoVegas.com in the market was down 32%, while Royal Panda and Rocket X also reported lower revenue from the UK. The slowdown was blamed on the “enormous work” undertaken with regards to compliance, although the company believes this will enable its UK-facing operations to deliver more sustainable growth in the long term. LeoVegas’ commitment to responsible gambling was demonstrated this year after spinning out its LeoSafePlay arm into an entirely new business unit.
This should all leave LeoVegas well placed to grow the business in what is now its second biggest market and given overall Q3 group revenue increased 41% year-on-year to €78.6m, it will likely remain a key player in next year’s EGR Power 50.