US ‘on the radar’ for LeoVegas
LeoVegas has revealed to iGamingBusiness.com it is considering expansion into the US sports betting market, but said there are a “lot of factors” to consider before making such a move.
The company has noted significant growth within its sports betting division in recent times, which has in turn led to a much stronger focus on this part of the business.
In the second quarter, sportsbook was responsible for 8% of total revenue, due in part to the impact of betting on football’s Fifa World Cup. This came after the firm committed a record amount of funds to marketing for the tournament.
The revelation comes as US-based sportsbooks prepare for one of the busiest weekends of the year, with the NFL American football season due to kick off tonight (Thursday).
A new report commissioned by the American Gaming Association has said that the NFL could see its annual revenue increase by $2.3bn (£1.78bn/€1.98bn) per year through widely available, legal, regulated US sports betting.
Gustaf Hagman (pictured), group chief executive of LeoVegas, told iGamingBusiness.com: “Our expansion strategy is to expand in regulated markets and markets that are soon be regulated, new product categories and to carry out strategic and complementary acquisitions.
“In terms of the US, we of course have it on our radar and follow development. It is a market with huge potential but it is also a lot of factors to take into consideration.
“In terms of expansion it is no secret that we think Spain is an interesting market.”
Last month, the company announced that BetUK, a casino-only site when acquired from IPS as part of a £65m deal earlier this year, is now accepting sports bets in the UK.
The company last month also applied for a new licence in Sweden, to fit in with re-regulation in the country, and revealed to iGamingBusiness.com that it could also pursue a licence in Spain.
Should LeoVegas opt to expand into the US market, it would join various other major brands that are already active across the regulated states of Nevada, New Jersey, Delaware, Mississippi and West Virginia.
Rhode Island and Pennsylvania are also due to launch regulated markets in the coming months, but will miss the lucrative start of the NFL season.
LeoVegas bills itself as a mobile-first operator. FanDuel, William Hill, DraftKings, Borgata and PlaySugarHouse all run mobile sports betting platforms in New Jersey.