LeoVegas acquires local German licence with sportsbook deal
Operator signs on German football and handball stars as brand ambassadors to localise its marketing strategy
LeoVegas has bolstered its presence in the German market through the acquisition of Germany facing sports betting operator World of Sportsbetting Ltd for €2.6m.
The firm holds a sports betting and casino licence in the state of Schleswig-Holstein enabling its to freely market its sportsbook across Germany.
LeoVegas group CEO Gustaf Hagman said being locally licensed would increase the operator’s credibility with media partners and improve its payment options.
As part of the deal, LeoVegas has signed on football icon Lothar Matthäus and the German handball profile Stefan Kretzschmar as brand ambassadors.
“Our new ambassadors also increase the local touch in our marketing, which we know creates loyalty and increased brand awareness,” Hagman added.
“We can now also be even more local on the product side and, especially, add important payment solutions that are important for the German market.”
The operator has a history of localising its marketing by signing deals with the likes of champion Swedish skier Jon Olsson and British comedian Johnny Vegas.
The firm also recently acquired UK-facing operators Royal Panda and IPS as part of its aggressive M&A strategy.
Hagman told EGR the a good acquisition needs a number of key elements to align.
“It needs to have a cultural fit and be a good seller and really we need to see how we can offer something knowledge wise, on both ends,” he said.
“Also [we want] to find the right type of people with the attitude of added growth.
“We can now also be even more local on the product side and, especially, add important payment solutions that are important for the German market.”
LeoVegas this morning reported a revenue increase of 65% to EUR 67.8 m for Q4 2017, with organic growth up 48%.
The operator recorded an EBITDA of €6.1m corresponding to an EBITDA margin of 9.0%