LeoVegas receives regulatory green light to offer online slots in Germany
LeoVegas Group has been granted regulatory approval by the Federal States’ Joint Gambling Authority (GGL) to offer online slots in Germany.
The German regulator has added LVSports Limited, an entity of the LeoVegas Group, to its whitelist of approved operators.LeoVegas can now start offering virtual slot games across all German states and conduct marketing activities across the country.
The operator said the approval represents a significant opportunity for the group, as Germany is one of Europe’s largest iGaming markets.
Gustaf Hagman, CEO at LeoVegas Group, said: “We are looking forward to launching LeoVegas in Germany under the new nationwide licence.
“With our track record of regulated markets, we will ensure the greatest iGaming experience with a high level of consumer protection,” he added.
LeoVegas’ German history
LeoVegas has repeatedly referred to losses suffered as a result of recent changes in the German market.
In its 2021 annual report, the company said it recorded growth of 1%, but that without the negative impact of the German market, growth would have amounted to 16%.More recently in Q4 2022, LeoVegas’ adjusted EBITDA dropped 68% year-on-year amid rising costs and market exits.
While the operator reported a 4% increase in NGR in its Rest of Europe category, growth was still negatively impacted by Germany, it said.
LeoVegas expanded its presence in Germany back in 2018, when it acquired acquired World of Sportsbetting for €2.6m.At the time, the brand held a sports betting licence and a casino licence in the German state of Schleswig-Holstein, as well as an approved application for a sports betting licence in the state of Hessen.
However, the advent of the Fourth Interstate Treaty on gambling, which covers all German states and led to the re-regulation of the German gambling market in July 2021, meant licensed operators had to re-apply.
The approval from the German regulator is certainly good news for LeoVegas’ new owners MGM Resorts.
Germany presents a valuable opportunity for the operator to expand its reach internationally, by leveraging LeoVegas’ expertise in the German market.