LeoVegas CFO Opens Up On Tighter Regulations And Future Acquisitions

LeoVegas’ CFO, Stefan Nelson, provided some fascinating insights yesterday during a fireside chat at ICE Barcelona. ICE is one of the world’s biggest iGaming conventions, where exhibitors showcase their latest innovations and industry leaders deliver keynote speeches.

However, the week-long event also presents the opportunity for one-on-one interviews with company figureheads. Nelson was pressed on several issues, including the impact of tightening gambling regulations in the UK.

Outlining gambling industry growth plans

Chancellor Rachel Reeves’ UK budget in November was unforgiving for betting operators. Tax hikes on Remote Gaming Duty (RGD) were announced, including an increased levy on online casino betting from 21% to 40% effective April this year, while the general duty paid on digital sports betting will be rolled out in April 2027.

Apart from a rise in taxes, the growth of illegal gambling is threatening the traditional regulated industry. Nelson stressed the challenges faced, but he also revealed how operators can compete despite the external pressures.

In an interview published on International Gaming Business’s YouTube channel, Nelson said:

“Taxes are higher, and there are more regulatory restrictions and that poses a challenge. To grow, you need to take market share by having the necessary technological advantages and the right experience to run faster and offer better products than our competitors.

"I think there won’t be as much space for as many operators as in the past. But for the operators with the right kind of infrastructure and the right financial capabilities, there is still a huge opportunity to gain market share and regulate the markets like the UK or Spain.

"You need to win by having the best product, the best friction-free player experience, being able to adapt, and navigating regulatory complexity."

Trying to stay ahead of the curve

LeoVegas, a subsidiary of MGM Resorts, has gained serious traction over the past few years, and it is perceived as one of the best UK betting sites. Nelson insists the company is always looking ahead and has a targeted strategy to remain competitive.

When pressed on the company’s growth plans, Nelson continued:

“I would say we want to be more distinct in where we focus our capital allocation and our resources. We understand we can't win everywhere. So we want to focus on the markets where we feel that we have a competitive edge, where we already have strong brands.

"I think we have the right starting points, but we believe that we need to focus on markets where we have the right to win, where we believe we can take a top-three or top-five market position, because there will be fewer operators in each market.

"I think that is how our mindset is changing, versus a previously a one-size-fits-all approach, to be much more localised and that players in each market have different requirements and preferences."

Exploring new business opportunities

It’s fair to assert LeoVegas never stands still. In 2024, LeoVegas acquired US sportsbook Tipico, and it was their second major investment following the purchase of Push Gaming the previous year. Nelson revealed LeoVegas is always on the lookout for new acquisitions, but he conceded the company is ‘picky’.

He added:

“I think the acquisitions we have made show we want to control our own tech destiny. We're always looking out for attractive acquisitions if we find them. It's not easy to find an acquisition that meets all our criteria and is also priced right.

"We have a fantastic infrastructure in place, and if we can find an operator that adds volume, we're definitely going to look at that. But we're quite picky."