LeoVegas Sees Profits Rise in Second Quarter of 2020
by Glenn Baird - August 18, 2020
LeoVegas AB has published its financial report for the period in 2020 ending in June 2020 and despite increased regulatory pressures has emerged from this period of Covid-19 Lockdown with a profitable balance sheet.
The Swedish based operator are up by 17%, from €110.7 million from €94.4 million in the same period last year.
Gustaf Hagman, President and CEO of LeoVegas, said: “We had favourable development in most of our markets during the second quarter. Growth has been driven primarily by a record-large depositing customer base, which grew 24% compared with a year ago. The Rest of Europe region experienced exceptionally high growth, with Italy posting record-strong performance.
“The effects related to COVID-19 are judged overall to have had a positive impact on NGR during April and May, mainly in the markets that were entirely shut down during the period. In these markets, LeoVegas has taken market shares from the land-based gambling industry.”
Added to the impressive upturn in profit was an increase in the number of customers of 24% from the same period in 2019.
However, despite these numbers Leovegas felt that the restrictions imposed on them by have had a negative impact. The operator specifically claimed that the deposit limits set by the Swedish regulators during the country’s Covid-19 lockdown were “implemented entirely without supporting factual data” and had impacted negatively on their revenues and player protection.
Hagman added: “During the quarter, several countries implemented measures to reduce the risk for problem gaming in connection with COVID-19. Spain, for example, introduced a temporary ban on gambling advertising. On top of these restrictions, LeoVegas has chosen to implement its own proactive measures to strengthen player protection.
“Most of the temporary restrictions throughout Europe ended in June, and Spain and the UK, among other countries, have reverted to normal regulations once their respective societies opened up again.
“It is therefore remarkable that Sweden, despite massive criticism from most areas, has moved in the opposite direction and introduced new, temporary restrictions, effective 2 July, focused particularly on online casino. There is a large risk that these restrictions, implemented entirely without supporting factual data, are undermining the Swedish regulation system and driving players to companies without Swedish licences, where player protection is nonexistent. These restrictions therefore risk being counterproductive and instead contribute to an increase in problem gaming in Sweden.
“We advocate for balanced and clear regulations for achieving long-term sustainable licensing systems. LeoVegas wants to contribute to this through a broader dialogue and collaboration with the authorities in the countries we are active in.”
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