LeoVegas has set its sights on the New Jersey betting market, having developed plans to launch its online casino brand in the state, following an agreement with leading US gambling conglomerate Caesars Entertainment.
Marking its first expansion into the burgeoning US gambling industry, LeoVegas expects to be able to accept its first American customers during the first half of 2022, and intends to facilitate its stateside launch via its proprietary technical platform.
The gambling group will leverage its Rhino platform – which handles over 60 game integrations from casino providers and sportsbooks and is fully ported with Google Cloud – as part of a strategic commercial plan to retain control over its product and enable a ‘unique and competitive’ gaming experience for its new American consumers.
In order to initiate the launch of the LeoVegas online casino platform in the US, the company will need to achieve certification by the relevant regulatory authorities in the state of New Jersey.
The online gaming market in the state is the largest in the US, recording over $1 billion in 2020 revenue. The jurisdiction currently has more than 20 brands offering online casino products, whilst gaming tax stands at 17.5% of gross gaming revenue.
“We are proud to finally be able to share our plans to establish ourselves in the USA,” said Gustaf Hagman, Group CEO LeoVegas. “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 just now discovering online gaming. In the USA, too, we will focus on what we are best at – offering an innovative, world-class gaming experience directly in mobile phones.
“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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Q1 trading saw LeoVegas present positive results, however the Stockholm-listed operator noted regulatory headwinds impacting its growth within its home market of Sweden and high compliance costs hampering its German market performance and forecasts.
The partnership with LeoVegas represents the second international integration of a European gambling operator by Caesars Entertainment, following the closure of its $2.9 billion takeover of British sports betting and gaming firm William Hill in April.
This May, Caesars Group CEO Tom Reeg confirmed to investors that all acquired William Hill US wagering properties would be rebranded to a new Caesars wagering identity – which would be revealed by September ahead of the new NFL 2021/2022 season.