MGM Resorts International Offers $607M To Purchase LeoVegas 

MGM Resorts International Offers $607M To Purchase LeoVegas 

MGM Resorts International has taken a significant step forward to strengthen its position in the worldwide online gambling sector. The casino operator made an offer of $607 million to purchase LeoVegas AB, one of the most famous online casinos globally. MGM hopes that by acquiring the Swedish gaming company, it will be able to boost its revenues and influence in the European gaming industry.

MGM Resorts International

Current price is set at $6.20 per share

A major announcement has been made on the prospective acquisition, with MGM’s current offer standing at $6.20 per share. Apart from being a well-established online casino brand, LeoVegas is also incredibly profitable. Mr. Bill Hornbuckle, the CEO of MGM, stated in a statement that the acquisition will allow both companies to accelerate their worldwide growth and “completely realize the potential of our omnichannel approach.”

Hornbuckle went on to note that the company had tremendous success with BetMGM in the United States, and that the acquisition of LeoVegas will allow the operator to expand its European reach even further. Profit is also one of the primary reasons why MGM is interested in acquiring LeoVegas, as previously stated. The online casino generated $414.24 million in revenue before incurring an EBITDA loss of $50.59 million in the fiscal year ending March 31, 2022. In March, the operator received approval to begin operations in the province of Ontario.

Furthermore, since 2014, LeoVegas has been a profitable venture. It saw a spectacular yearly growth rate of 16 percent between 2017 and 2021, unprecedented in the industry. Therefore, MGM has identified three key reasons for the acquisition:

  • Strategic opportunities to accelerate growth and product offerings outside of the United States.
  • The presence of an experienced online gaming management team and superior technology capabilities.
  • A commitment to continued profitable growth given the company’s track record of operating profitably as a high-growth platform.

MGM anticipates sale in the 2nd half of 2022

It is expected that if the “offer is certified unconditional” no later than August 2022, settlement can begin in September. As a result, MGM expects to complete the acquisition in the second half of 2022. If the transaction is completed, MGM will have access to eight European states, including the Nordic region.. Not only that, but LeoVegas is also a well-established online sportsbook provider, which suggests that the two companies may be able to do some nice business together.

The company just received a license from the Alcohol and Gaming Commission of Ontario and began offering its services in April, shortly after the province’s online gaming market opened for business. This month, MGM will begin accepting offers for the first time, with the period ending in August. LeoVegas has encouraged its shareholders to accept the $607 million offer. MGM has the potential to become one of the most influential gambling operators in the United States, Canada, and Europe if this transaction is completed. Since the beginning of 2022, the corporation has made a number of significant actions in order to regain complete control over its operations and to buy back its own stock in the process.

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About Lou De Aguila

Lou Ramon Aguila is a contributor for Golden Casino News. He has a degree in BSBA Legal Management with great interest in high-profile legal cases involving sports personalities. An ultimate sports junkie, he covers just about everything in the sporting world with an emphasis on the NBA, NFL, and MLB. In his past time, Lou loves to read manga, watch anime and critique pro-wrestling matches.