LeoVegas Gaming Plc, a subsidiary of parent company LeoVegas AB (publ) (LEO:STO), is among one of the first company’s to be approved by The Swedish Gambling Authority for a license to operate online betting and gaming services in Sweden.
On June 7 this year, the new Gambling Act (SFS 2018:1138) was approved by the Riksdag (the Swedish Parliament) that will give Sweden a new, re-regulated gambling market. The new license system will be effective from January 1, 2019 and only companies that have obtained a license will be permitted to conduct gambling activities in the Scandinavian nation.
According to Friday’s official press release…
Chief Executive Officer and co-founder for LeoVegas Group, Gustaf Hagman (pictured, left), said, “Finally – we have been waiting for this day for a long time and is a milestone in LeoVegas history! We have worked hard with the extensive application process and I am very proud of our work. LeoVegas currently has gaming licenses in several countries and has thus broad experience operating in a regulated environment.”
“a fundamental part of our operations”
“In recent years we have invested substantially in responsible gaming and LeoSafePlay, an area that will continue to make up a fundamental part of our operations. Being among the first operators to receive a gambling licence is a quality seal and affirms LeoVegas as a leading, long-term and serious actor in the industry. LeoVegas is the most well-known online casino brand in Sweden. We believe we offer the best mobile gaming experience. This combination is hard to beat and gives us a strong position in our home market where we continue to grow,” explained Hagman.
The expansion strategy of the Swedish mobile gaming company and provider of online casino and sports betting services is to make regulated markets and those in the process of being regulated, a focus of the publicly listed firm. Currently, the company reportedly generates 35 percent of its revenue from regulated markets (Q3 2018). With Sweden’s new, re-regulated gambling market, the company expects that figure to nearly double to 60 percent early in the new year.
The Nordic country’s market is an important one for LeoVegas’ achievement of its financial targets for 2020, which are to reach at least EUR 600 m in revenue and EBITDA of at least EUR 100 m.
Some of the new Gambling Act’s regulations include:
- The division of the gambling market into three parts; one part covering online gambling and betting; one part covering gambling that has a public benefit, such as lotteries and land-based bingo and one part that is controlled by the Swedish state, such as land-based casinos and token machines.
- Gambling operators granted a license must protect players from excessive gambling, duty of care.
- A license holder may only offer a bonus on the first gambling occasion.
- Licensed operators are subject to a tax of 18 percent of the profit they make on gambling in Sweden. Gambling that benefits the public will remain free of tax.
Established in 2012, LeoVegas has in a relatively short period of time become the fastest growing mobile gaming company and a market leader in mobile casino, thanks in part to its mobile-first approach. The company submitted its application to obtain a license for casino and sports betting in Sweden in August this year.