MGM Resorts Gets Regulatory Approval to Take Over LeoVegas

  • MGM announced its plan to acquire LeoVegas in May for $607m
  • The casino company is hoping to expand its online gambling profile in non-US markets
  • Certain final requirements still need to be met before the official closure of the deal
  • MGM could potentially look to make further similar types of acquisitions in the future
LeoVegas splash screen on a smartphone
MGM Resorts has received all the necessary regulatory approvals to proceed with its $607m takeover of LeoVegas. [Image: Shutterstock.com]

Full steam ahead

MGM Resorts International now has all of the relevant regulatory approvals necessary to take over LeoVegas. The casino company announced in May its plan to acquire the online gambling brand in a deal worth $607m.

expand its exposure in the online gambling markets in Europe and other non-US markets

MGM’s plan with the acquisition is to expand its exposure in the online gambling markets in Europe and other non-US markets. It already has a strong presence in North America’s online gambling sector through the BetMGM brand that it co-owns with UK gambling group Entain.

The LeoVegas board quickly and unanimously gave their support for MGM’s offer. However, a number of different approvals were necessary in order for the deal to progress. MGM has said that all the different clearances have been received.

End in sight

There are still certain aspects of the official offer document that need to be completed before the deals can officially close. MGM has until the end of August in order to meet all of the offer document’s requirements. The casino company is confident of doing just that, with the current target date for completion set for September 7.

LeoVegas is a Sweden-based online gambling brand founded in 2011 which offers online casino games and sports betting to users around Europe.

At the time of the original announcement regarding the LeoVegas takeover, MGM Resorts International president and chief executive Bill Hornbuckle said: “this strategic opportunity with LeoVegas will allow us to continue to grow our reach throughout the world.”

Further deals are possibly on the way

MGM Resorts has been performing strongly following pandemic-related issues. Earlier in August, the company announced that its revenue in the first half of 2022 was 54.3% greater year-on-year than in the same period in 2021.

During an earnings call, Hornbuckle mentioned that there may be further action from MGM following the completion of the LeoVegas deal to expand its reach into new territories. He referenced the LeoVegas acquisition as being a good starting point, but further deals might be necessary in order to significantly move the needle.

allegations of possible insider trading of LeoVegas shares

There have been a couple of hitches since the announcement of the LeoVegas acquisition, including a preliminary investigation in Sweden over allegations of possible insider trading of LeoVegas shares in and around the time of the MGM takeover announcement.