Online gaming operators along with gamblers alike have good news. This is after the Danish Gambling Authority granted LeoVegas an extension of its operating licenses. LeoVegas will now operate in the country for an extended period of five years.
Five-Year Extension for LeoVegas by Spillemyndigheden
LeoVegas is already a veteran in the Danish gambling market. This gaming company has been in the country since 2016. The latest five-year extension will see the gaming operator offer its services in the country until 2026.
Gustaf Hagman commented on renewal. The LeoVegas Group CEO termed the company’s launch in the jurisdiction as one of its most successful. And the fact that it’s now a force to reckon with in Denmark is clear evidence of that.
The official went on to express their thrill at the fact that they can continue offering their services in the country. Receiving the operating license extension came as a much-needed shot in the arm in its targeted expansion across various regulated markets in Europe.
The group already holds licenses to operate in:
- Schleswig-Holstein in Germany
- United Kingdom
Denmark’s New Gaming Market Regulations
Numerous online gambling operators have agreed to adhere to the new Danish regulations governing the marketing space. The regulations came in to curb the sector’s increasing proliferation. The regulations only allow operators to promote winnings resulting from slot machines. This is if they are less than DKK600.
That means advertising slot games with winnings over this amount is an infringement on the Danish Gaming Act. It’s also a violation of the consumer protection code of conduct inducted in 2019.
The Danish gambling regulator even had to issue a warning late last month reminding operators of this regulation. A statement from the regulator stated that marketing games must present the winning chance correctly. This then doesn’t create an impression of a greater winning chance than the actual.
Operators must make it clear in their advert that the winning chance is over several games. This if the operator decides to advertise winnings beyond the stipulated DKK600.
Germany’s Re-regulation Hurting LeoVegas’ Performance, Sweden Encourages
September saw LeoVegas complain about Germany’s re-regulation. The group said the new regulations negatively impacted the company’s performance. This is despite it hitting double-digit growth figures in markets it considers crucial.
But developments in Sweden continue to encourage. This was according to the online gambling brand after hitting record-high revenue in quarter two. North America posted rapid growth receiving praise from the company. This region now contributes 10% of the total revenue.
LeoVegas posted a 13% year-over-year drop in its quarter two revenue. This saw the company close the quarter at €96.8m from €110.7 million. Adjusted EBITDA saw the revenue drop to €9.8 million. This is a drop of €13.2 million.