Posted on: March 6, 2023, 06:52h.
Last updated on: March 6, 2023, 02:08h.
Gaming operator LeoVegas recently received a new license that could be a game changer for the company and the market.
In one of the first big approvals since MGM Resorts International acquired the company last year, LeoVegas now has a license to offer and market online slots across Germany.
The country’s Joint Gambling Authority (GGL, for its German acronym) recently approved the LeoVegas subsidiary LVSports Limited license. Under the license, the company can now provide slots and marketing services to all 16 states.
When Germany introduced the Fourth Interstate Gambling Treaty (GlüNeuRStv, for its German acronym), it probably envisioned a systematic rollout of iGaming across the country. The legislation facilitated cohesion among state gambling laws. But some states have also taken it to mean they can opt out of online gambling entirely.
As a result, the expansion of online gambling has been more subdued than anticipated, with regulators slow to approve licenses and states quick to attack. Most of what is available so far are online slot machines, although online poker recently began to creep in.
LeoVegas Takes Leading Position
The GGL took over at the beginning of the year, another step in transforming Germany’s gaming industry. It brought together a fractured environment with different regulators for gambling activities.
But not all German states have been happy with the country’s implementation of its online gambling changes. In the middle of January, for example, Mecklenburg-Vorpommern leaders called out the arrival of the GGL and online gaming in general.
State Chairman René Domke asserted that just because the GGL exists doesn’t mean states have to adhere to it. He added that the arrival of unified gambling regulations to include online gambling doesn’t automatically force individual states to allow it.
This could be a sore spot for LeoVegas as it takes advantage of its new license.
A request for comment by Casino.org for this article didn’t receive a response before press time.
LeoVegas Revenue Dips
On the heels of the acquisition by MGM Resorts, LeoVegas didn’t see any significant positive movement in its revenue. It reported a 1% increase in gross earnings for the fourth quarter of last year but also had an operating loss of €2.5 million ($2.7 million). A year earlier, it had a profit of €6.1 million ($6.5 million).
The primary source of the loss came from operating expenses, which increased year on year by 56%. There were increases in personnel and tax costs, with operating expenses draining €16.5 million ($17.7 million) out of the company.
The new license in Germany should give LeoVegas a boost and allow it to see the gains it saw in other European countries, like Spain and Sweden. First, it will have to contend with those German states that aren’t thrilled with the prospect of online gambling.