Genting buys LeoVegas’ live dealer arm Authentic Gaming
Casino giant Genting Group has struck a deal to acquire LeoVegas’ live dealer solutions subsidiary Authentic Gaming in a €15m (£12.9m/$16.7m) deal.
LeoVegas noted that the purchase price for Authentic, which generated revenue of approximately €1m for the three months to 30 June, represented a return of more than 100%.
Authentic Gaming, which broadcasts live casino content from land-based casinos around Europe, has operated as an independent division of the operator for the past three years, having been funded by its investment arm LeoVentures. It is currently one of three holdings in LeoVentures, alongside esports betting brand Pixel.Bet and casino streaming portal CasinoGrounds.
“We have now laid the foundation for Authentic Gaming to take its next big step in live casino,” Authentic Gaming founder and chief executive Jonas Delin said. “I am very happy that Genting, with more than 50 years of experience in gaming and entertainment, shares our vision to weave online and land-based casino and has chosen to invest in our product and team.”
Genting has previously partnered Evolution Gaming for its live dealer content, with the supplier broadcasting its Dual Play Roulette title from the operator's Resorts World Birmingham venue.
Jeremy Taylor, managing director of Genting Online, said the operator's land-based casino estate provided a platform to grow its online business rapidly.
"Our vision is to offer our customers an amazing gaming experience from all of our casinos around the world, 24 hours a day through any device," he explained. "With Authentic Gaming’s advanced technology and innovative product, we are convinced that together we have a good position to realise that vision.”
LeoVegas Group chief executive Gustaf Hagman described the deal as a "milestone" for the operator.
"The time is now right to sell the enterprise to the industry giant Genting, which is the perfect buyer to take Authentic Gaming to the next level," he said. “The deal shows our innovative strength in the Group and our ability to develop and build sustainable companies.
"We have thereby created shareholder value with a more than a 100% return on our investment in Authentic Gaming.”
The agreement comes after LeoVegas in August reported a 10% year-on-year increase in revenue for the first half of the year, but also said that challenging operating conditions in the UK eroded its profits over the period.
Revenue amounted to €180.7m for the six months to 30 June 2019, but tighter social responsibility controls and increased Remote Gaming Duty in the UK pushed operating profit down from €9.3m to €8.5m for the period.
Image: Max Pixel