LeoVegas unveils US launch strategy
Stockholm-listed operator strikes market-access agreement with Caesars Entertainment in New Jersey ahead of 2022 launch
LeoVegas today revealed its long-awaited US launch plans after signing a market-access agreement with Caesars Entertainment in New Jersey.
Under the terms of the deal, the LeoVegas brand is primed to go live with igaming in the Garden State next year before welcoming players from H1 2022.
The offering will be powered by the operator’s proprietary technology platform Rhino, which is still to be certified by New Jersey’s Division of Gaming Enforcement.
“This strategic choice gives the company full control over the product and will enable a unique and competitive gaming experience for American customers,” said LeoVegas in a statement.
Addressing the operator’s perceived late entry into the US coming three years after the repeal of PASPA and more than seven years after igaming first went live in New Jersey, LeoVegas CEO Gustaf Hagman said being best was more important than being first.
Hagman highlighted the example of Sweden, where the operator is now the largest online casino brand despite launching in 2012 once the market had settled and was already packed with competitors.
He also revealed that LeoVegas was in the process of building a local US team in a New Jersey office.
Hagman suggested LeoVegas would not be bound to Caesars as a market-access partner when looking to expand into further US states outside of New Jersey.
Caesars, which recently completed its £2.9bn takeover of William Hill, has 888 and Wynn Interactive sports betting offering on its interactive licence in the state.
Discussing the level of marketing and acquisition investment required to compete in the high-growth US market, LeoVegas CFO Stefan Nelson said: “For the first year or two, there will be more intent to grow the business rather than look at the profit line, but we are also very ROI-driven and so any investment we make will have a profitability target further down the line.
“But the bigger the opportunity the bigger the investment,” he added, asserting that LeoVegas would look to report on the US separately in future to allow for clarity among investors and analysts.