LeoVegas targeted the New Jersey betting market with plans to launch its online casino brand in the state, in agreement with a leading US gambling conglomerate Caesars Entertainment .
LeoVegas is the first expansion into the growing US gambling industry. It is expected to be able to host its first US customers during the first half of 2022 and intends to facilitate the US launch through its own tech platform.
The gaming group will leverage their Rhino platform, which handles 60 gaming integrations from casino and bookmaker providers and is fully ported from Google Cloud - as part of a strategic business plan to retain control of their product and provide “unique and competitive” gaming experiences to new US consumers.
In addition to the LeoVegas online casino platform in the USA, the company will need to be certified by the relevant regulatory authorities in the state of New Jersey to get started.
The state's online gaming market is the largest in the US, generating over $ 1 billion by 2020. There are currently more than 20 brands offering online casino products in the jurisdiction, with a gambling tax of 17.5% on gross gaming revenue.
“We are proud to finally be able to share our plans to establish ourselves in the United States,” said Gustav Hagman , CEO of the LeoVegas Group. “We think the time and partner is now for the launch of The Casino King in the US.
“The American market has tremendous growth potential and players are only now discovering online games. In the US, we'll also focus on what we do best - delivering innovative world-class gaming experiences right on our mobile phones.
"Building our own platform is a strategic decision and we know from other markets that having complete control over our technology is a key competitive advantage."
Trading in the first quarter showed that LeoVegas performed positively, however Stockholm Stock Exchange operator noted that regulatory factors are affecting its growth in the domestic market in Sweden, and high compliance costs impede its market performance and forecasts in Germany. The partnership with LeoVegas represents the second international integration of European gambling operator Caesars Entertainment after the closure its $ 2.9 billion takeover a British sports betting and gambling firm William hill in April.
In May, the CEO of Caesars Group Tom Rig confirmed to Investor s that all purchased William Hill US wagers will be renamed to the new Caesars betting system, which will be disclosed by September ahead of the new 2021 NFL season.