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Online casino operator LeoVegas has agreed to a deal with established operator Caesars Entertainment that will see the Swedish-based firm debut its first online casino for the US market.
In a press statement issued today, LeoVegas said that the US “will become the world’s largest regulated gaming market.”
“We are proud to finally be able to share our plans to establish ourselves in the USA. We think the time and partner are right to launch ‘The King of Casino’ in the USA. The American market has immense growth potential, and players are right now discovering online gaming,”
CEO Gustaf HagmanA partnership with the owner of a local land-based casino, in this case Caesars Entertainment, is required under New Jersey rules.
This deal will (eventually) give New Jersey players access to LeoVegas’ award-winning mobile casino options. The New Jersey online market is a growing one, pulling in over $1 billion in revenue in 2020.
Leo Vegas will be competing with around 20 other international and US-based online casinos. That list includes fellow Nordic-based operator Unibet, one of the first online casinos to launch in the state back in 2018.
Technical Platforms
LeoVegas will be hoping to distinguish itself from the competition with its aforementioned (and highly polished) mobile site. It will also be launching its site using its own proprietary platform.
Most international operators in the US have worked through their local partners to develop their online casino platforms, so this could be a refreshing change.
According to the company’s press release, “This strategic choice gives the company full control over the product and will enable a unique and competitive gaming experience for American customers.”
Part of that platform may also include LeoVegas’ recently launched in-house studio, Blue Guru Games. No titles have been revealed as of yet, but they are penciled in for a late 2021 release.
Competitive Advantages
All that in-house development will mean more work for Leo Vegas in the short term, as bringing in its own online casino platforms and games will mean an additional type of license is required.
“Establishing ourselves with our proprietary platform is a strategic decision, and we know from other markets that having full control over our technology is a key competitive advantage,”
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CEO Mr. HagmanStill, having just reported an 8% revenue increase to $118 million in the first quarter of 2021, it’s fairly certain the company will be able to cover any extra costs.
Speaking of costs, this deal should also be good news for LeoVegas’ partner Caesars. The US gambling giant has been on an acquisition spree over the past year and recently posted a $423 million loss in the first quarter of 2021.
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However, with the expected sale of the recently acquired British division of William Hill set to bring in several billion – and other sales in the pipeline – the market doesn’t seem too worried about those losses for now.
The key theme across the recent offloading by Caesars is a focus on the US online market. Deals like this, with one of Europe’s most exciting and forward-thinking online casino operators, can only help that goal.
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For the latest news on the fast-growing US online casino market, plus much more from all over the world, keep checking back to the site.