Genting has said that the €15m deal will help it “lead the way in the live casino space.”
Genting Group has agreed a deal to acquire Authentic Gaming, the live dealer solutions subsidiary of LeoVegas, for €15m.
The value of the deal sees LeoVegas earn a return of more than 100% on Authentic, which generated approximately €1m for the three months to 30 June. The live casino supplier has operated as an independent division of LeoVegas since 2017 and will continue to operate independently as Genting supports the company’s expansion.
Jonas Delin, Authentic Gaming founder and chief executive, said “We have now laid the foundation for Authentic Gaming to take its next big step in live casino. I am very happy that Genting, with more than 50 years of experience in gaming and entertainment, shares our vision to weave online and land-based casino and has chosen to invest in our product and team.”
Jeremy Taylor, Genting Online managing director, commented: “Our vision for the future is that customers will be able to play at any of our casinos in the world, such as Las Vegas, Bahamas or Singapore to name but a few, in an immersive experience, from any device, from any website, 24/7.”
This means Genting would offer a similar service to the likes of Grosvenor and Aspers, both of which stream certain live casino games from their land-based sites.
Taylor added that “with Authentic Gaming’s advanced technology and innovative product, we are convinced that we have a good position to realise that vision.”
The deal is expected to be completed at the end of October. The gains from the sale will be confirmed in LeoVegas’ Q4 report.
In August, LeoVegas reported that its live casino operations generated 17% of its Q2 revenue. Chief executive, Gustaf Hagman, said that “the time is now right” for the sale, commenting that Genting “is the perfect buyer to take Authentic Gaming to the next level.”
“The deal shows our innovative strength in the Group and our ability to develop and build sustainable companies. We have thereby created shareholder value with a more than 100% return on our investment in Authentic Gaming,” Hagman added.