Leading online operator LeoVegas has revealed its decision to withdraw from the Japanese and Indian markets, effective from the end of this month. This strategic move comes ahead of the anticipated acquisition of LeoVegas by land-based casino giant MGM Resorts. The company’s flagship LeoVegas brand and the Royal Panda brand will both cease operations in these markets, aligning with LeoVegas’ focus on regulated markets and its commitment to long-term growth.
Shift Towards Regulated Markets:
LeoVegas has clarified that its withdrawal from the Japanese and Indian markets is in line with its overarching strategy of concentrating on locally-regulated and soon-to-be-regulated markets. The company continually assesses its brand portfolio and the markets it operates in, ensuring that each brand serves a clear long-term purpose. This strategic approach aims to position LeoVegas for sustainable growth while adhering to regulatory frameworks.
MGM Resorts Acquisition and Expansion Plans:
The decision to exit the Japanese and Indian markets precedes the finalization of LeoVegas’ acquisition by MGM Resorts, which recently received all the necessary regulatory approvals for the $607 million deal. MGM Resorts has expressed its intentions to extend its online gambling offerings beyond the United States, particularly targeting the European market and other international jurisdictions. However, LeoVegas emphasizes that its withdrawal from Japan and India was not influenced by the impending acquisition, as the company had already been implementing its strategy of focusing on regulated and regulating markets prior to any bid.
Timeline and Implications:
The acquisition deal between LeoVegas and MGM Resorts is anticipated to conclude around 7 September. LeoVegas’ departure from the Japanese and Indian markets will take effect on 1 September. This allows for a seamless transition as LeoVegas consolidates its operations and aligns its business model with its strategic direction. By exiting these markets, LeoVegas can streamline its efforts and allocate resources more effectively to drive growth in regulated jurisdictions.
Focusing on Regulatory Compliance:
LeoVegas’ commitment to regulated markets underscores its dedication to responsible and compliant operations. By shifting its focus to jurisdictions with clear regulatory frameworks, the company aims to strengthen its position as a trusted and compliant operator. This approach ensures that LeoVegas operates within the bounds of local laws, safeguards player protection, and contributes to the long-term sustainability of the online gambling industry.
Future Prospects:
With the imminent completion of the MGM Resorts acquisition, LeoVegas is poised for a new phase of growth and expansion. By joining forces with MGM Resorts, LeoVegas gains access to substantial resources, expertise, and a broader international network. This partnership paves the way for LeoVegas to explore new opportunities in regulated markets globally, capitalize on synergies, and enhance its position as a market leader in the online gambling industry.
LeoVegas’ decision to exit the Japanese and Indian markets aligns with its strategic focus on regulated markets and its commitment to sustainable growth. This move precedes the finalization of the company’s acquisition by MGM Resorts, enabling a seamless transition and consolidation of operations.
By concentrating on regulated and regulating jurisdictions, LeoVegas prioritizes compliance, player protection, and responsible gambling practices. With the backing of MGM Resorts, LeoVegas is well-positioned to pursue new opportunities, expand its presence in regulated markets, and reinforce its position as a leading online gambling operator.