LeoVegas Gets a Nationwide Online Gaming Licence From Germany
LeoVegas, a gaming operator, just got a new licence that could totally change the market and the company.
LeoVegas now has a licence to offer and market online slots in Germany, marking one of the company's first significant licences since MGM Resorts International acquired it last year.
The licence for the LeoVegas subsidiary LVSports Ltd was recently approved by the nation's Joint Gambling Authority (GGL, for its German abbreviation). The business is now able to offer slots and marketing services to all 16 states thanks to the licence.
When Germany proposed the Fourth Interstate Gambling Treaty (GlüNeuRStv, for short), it undoubtedly had in mind a planned expansion of iGaming throughout the nation. The measure made it easier for state gaming laws to be consistent. Yet some jurisdictions have also construed it to indicate they can opt out of online gaming entirely.
As a result, the growth of internet gambling has been slower than expected, with states attacking quickly and regulators taking their time approving licences. Online slots have predominated the selection up to this point, while online poker has recently started to appear.
A further milestone in the transformation of the gaming sector in Germany was the GGL's takeover at the beginning of the year. A fragmented environment with many gaming activity regulators was brought together by it.
Yet, not all German states have been pleased with how the nation has implemented its changes regarding internet gaming. For instance, Mecklenburg-Vorpommern officials criticised the GGL's entry and online gaming in general in the middle of January.
René Domke, the State Chairman, stated 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.
LeoVegas may find this to be difficult when it makes use of its new licence.
Following MGM Resorts' takeover of LeoVegas, the casino's revenue didn't much increase. In spite of an operational loss of €2.5 million ($2.7 million), it claimed a 1% increase in gross profits for the fourth quarter of last year. It made €6.1 million ($6.5 million) in profit the year before.
Operating costs, which rose by 56% year over year, were the main cause of the deficit. The company lost €16.5 million ($17.7 million) in operating expenses as a result of rising labour and tax costs.
LeoVegas should benefit from the new licence in Germany and be able to replicate the growth it saw in other European nations like Sweden and Spain. First, it will have to fight with those German states that aren't delighted with the thought of online gambling.
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iGaming News • Germany