LeoVegas Shares Fall Nearly 25 Percent as Compliance Costs Mount

Written by:
Aaron Goldstein
Published on:

Compliance pressures in the European online gambling market are beginning to take its toll.

Why Become an Affiliate When You Can Run Your Own Online Sportsbook - 6 Weeks Free

LeoVegas, one of the largest of the online casino operators, saw its share price fall by nearly one-quarter.  The company warned of the increasing costs tied to regulatory compliance. 

From CalvinAyre.com:

On Wednesday, the Stockholm-listed LeoVegas reported revenue of €78.6m, a 41% increase over the same period last year, while earnings rose €1.4m to €9m. The surge reflects the company’s UK online casino acquisitions of Royal Panda and IPS (the latter since rebranded as Rocket X) plus the launch of its UK-facing betting brand BetUK. Organic growth was up a more modest 7%.

Company shares dropped 24.2% at the close of Wednesday’s trading. The company did warn that the tightening regulatory compliance, particularly in the UK market, was having “an adverse effect on growth.”

The CA website also noted that the UK Gambling Commission had hit LeoVegas with a £600k penalty for misleading advertising and failing to take “all reasonable steps” in protecting problem gamblers from themselves.

The company offered some positive news in this week's report, pointing out that Sweden's regulated online gambling market is set to open January 1.

LeoVegas anticipates a jump of approximately 60% from locally regulated markets, up from the 35.3% in Quarter 3.

-  Aaron Goldstein, Gambling911.com

Gambling News

Hollywood Casino at Penn National Debuts Sportsbook

Hollywood Casino at Penn National Debuts Sportsbook

Pennsylvania has begun taking sports bets.  The Hollywood Casino at Penn National Race Course in Grantville is now open.

Judge Schedules Hearing on Whether to Release Report on Wynn

A judge in Nevada has temporarily blocked the planned release of a Massachusetts Gaming Commission report about allegations of sexual misconduct against former casino mogul Steve Wynn, a court official said Monday.

Philippines Government Begins Crackdown on Foreign Employees of Online Gambling Sites, Casinos

Philippine authorities have begun to crack down on foreign employees of Internet gambling sites and land-based casinos.

Top Government Official Pleads Guilty to Gambling Away Tax Payer Funds

A former top economic development official in Maryland has pleaded guilty to stealing millions of dollars from the public.

UK Forced to Accelerate Planned Reform to Gambling Regulations

UK Forced to Accelerate Planned Reform to Gambling Regulations

The British government bowed to increasing pressure from lawmakers on Wednesday by bringing forward a planned reform of gambling regulations by six months.