Casino players have been enjoying an exciting offer at BetMGM Casino. The gaming operator thrilled its clients on Wednesday after it added more incentives to the offer. But it hasn't disclosed the changes that it will make to its casino application, and some people are speculating what they entail.
The gaming company is almost winding up purchasing LeoVegas, a European gambling firm, after its stockholders accepted its takeover on Wednesday. Still, BetMGM has to overcome some hurdles before it finalizes the acquisition. It intends to increase its resources for online betting products in the U.S.
LeoVegas and BetMGM Casino Might Soon Be One Organization
MGM Resorts International made a press release on Wednesday with details about LeoVegas stockholder's election. It revealed that 96 percent of them accepted its offer to buy all LeoVegas shares.
BetMGM prolonged its offer in May and set 61 Swedish Kroner per share as its price, which adds up to $607 million. Bill Hornbuckle, MGM Resorts CEO, stated that the company's LeoVegas acquisition is part of its strategy to grow its global online gaming popularity. LeoVegas is a leading gambling operator in Europe.
It has several online casinos in the United Kingdom and the Scandinavian countries. Yet, it licenses various online gambling operators with a proprietary RHINO system to help them manage their online betting platforms. Their operations raked in $391 million in revenue between June 2021 and June 2022.
BetMGM initially planned to seal the acquisition deal this month, and it has made remarkable progress so far. It has to meet certain regulatory matters before it fully acquires LeoVegas.
An Uncertain Closing Date
A regulator inquiry began a few weeks after BetMGM prolonged an offer to acquire LeoVegas. Swedish authorities visited LeoVegas Stockholm headquarters in June, searching for evidence that it had violated the country's trading laws.
Some of the allegations were leaks of BetMGM's potential interest before it announced it in public. Still, there are a few likely individual and corporate intentions to tip some people off to the transaction. This includes increasing LeoVegas stock's price for BetMGM to offer a higher price.
The authorities didn't suspect any LeoVegas employee of committing a crime. Even so, the inquiry is ongoing, and the authorities haven't indicated if they will allow the acquisition to continue before the inquiry ends. The transaction might occur after several months if this happens.
BetMGM's United States online casinos, such as Borgata Casino and BetMGM Casino, might have ramifications if the transaction ends. The deal's future is still speculative.
Will LeoVegas Takeover Impact the U.S. Online Gambling Sector?
BetMGM urgently needs to consider LeoVegas' deal with Caesars Entertainment to provide a LeoVegas-branded online gaming site in New Jersey. The contract is on hold due to the potential transaction. Also, it is an example of the many options that BetMGM has to take in new resources.
Other possibilities include retaining LeoVegas online casino as a European platform, introducing a live gaming product in New Jersey, or terminating LeoVegas and Caesars' contract. BetMGM is likely to acquire the RHINO platform, and it might use it to power other American online casino platforms.
It is uncertain whether users will detect any difference in its products. The gaming operator can decide to integrate LeoVegas games into Borgata and BetMGM casinos.