LeoVegas eyes Spanish-speaking online gambling markets, makes first foray into those with license application in Spain
Online gambling operator LeoVegas announced earlier this week that it has applied for a license for the provision of casino games and sports betting in Spain. The company anticipates to enter the new market in the first quarter of 2019.
LeoVegas’ entry in Spain will mark the operator’s first foray into a Spanish-speaking market. It said in a statement from earlier this week that setting foot in that particular country will be a first step in a wider strategy to expand its footprint across more Spanish-speaking countries.
LeoVegas cited the rapid growth of Spain’s gambling market as a reason for its interest in it. According to recent data from the country’s gambling regulator, Dirección General de Ordenación del Juego (DGOJ), the local market grew nearly 30% year-on-year during the third quarter of 2018.
Locally licensed gambling companies generated revenue of €182 million during the three months to September 30, 2018. Sports betting was the leading sector, contributing €97.6 million to the revenue bulk. The online casino vertical generated nearly €61 million in revenue.
Commenting on the latest announcement, LeoVegas CEO Gustaf Hagman said that they are now taking the next step on their “global expansion journey” and that through their technology and experience, they “can effectively adapt their business to regulated markets regardless of language and regulations.”
Swedish License
Spain is not the only market LeoVegas will expand its footprint into next year. The company recently received a license from the Swedish gambling authority as the Scandinavian country is just weeks away from the official reorganization of its online gambling market. LeoVegas will be able to launch into Sweden from January 1, 2019, when its new gambling law is set to take effect.
The company, which is headquartered in Malta but hails from Sweden, said in a recent statement that expanding into new markets is one of the steps for achieving its financial goals for 2020. LeoVegas targets annual revenue of at least €600 million and EBITDA of at least €100 million by the end of 2020.
The company has already made a clear statement that expansion into the lucrative and newly regulated Swedish market has been among its priorities. According to a report by Swedish measurement company Kantar Sifo from earlier this year, LeoVegas was among Sweden’s top 20 advertisers in 2017. The operator spent around SEK313 million (approx. €30.5 million) on advertising campaigns targeting Swedish consumers last year, boosting its advertising spending by more than 80% year-on-year.
LeoVegas will be competing with the likes of bet365, The Star Group, GVC Holdings, and Global Gaming, among others, for a share of Sweden’s online gambling market. All of the listed above and more than 60 others were recently awarded licenses from the country’s gambling regulator as part of the local market’s reorganization.
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