On Wednesday, the Stockholm-listed LeoVegas announced that it had entered into an agreement with Genting to sell Authentic Gaming for €15m. LeoVegas shareholders largely shrugged at the news, with the stock closing out Wednesday’s trading down less than 1% to SEK33.90.
LeoVegas says the deal represents a return of “more than 100%” on the company’s acquisition of Authentic a little over three years ago. LeoVegas CEO Gustaf Hagman said “the time is now right” to unload Authentic, which “has developed into a profitable company.” Authentic’s B2B clients include Betsson, Kindred Group, Casinos Austria International and Greentube.
In August, LeoVegas reported that 17% of its second-quarter revenue came via its live casino operations. RNG casino games remain LeoVegas’s core business, as its three-year-old sportsbook vertical has yet to catch on with customers.
Authentic CEO Jonas Delin said his group had “laid the foundation” for taking the “next big step in live casino.” While celebrating its relationship with LeoVegas over the past three years, Delin said Genting “shares our vision to weave online and land-based casino and has chosen to invest in our product and team.”
Genting Online CEO Jeremy Taylor said his parent company’s significant land-based gaming operations offered “a platform to grow online at a fast pace” and Authentic’s “advanced technology and innovative product” would advance Genting’s goal of providing “an amazing gaming experience from all of our casinos … 24 hours a day through any device.”
In September, Genting announced that it was rebranding its online casino, live casino and sportsbook offering as GentingBet. Genting runs an extensive live casino dual-play product streamed from its UK-based casinos, with London Chinatown the latest venue to come online this month.
Genting’s UK-based live casino offering was provided by Evolution Gaming. It’s unclear what the Authentic Gaming acquisition portends for Genting’s future relationship with Evolution.