LeoVegas Acquires Online Gambling Firm Royal Panda

Published Wednesday, October 25, 2017 - Online-Casinos.com
LeoVegas Acquires Online Gambling Firm Royal Panda

The age of internet gambling has possibly reached a peak according to those venture capitalists looking for opportunity in the industry. The merger and acquisitions activity has been strong in the online gambling world with some smaller firms and some very large ones making purchase deals.

The recent revelation by the Swedish firm LeoVegas that it has entered into an acquisition agreement of the Malta-based company Web Investments Limited is another example of this trend. LeoVegas is a mobile gaming company and provider of online casino and sports betting services founded in 2011.

The group of the Web Investments Limited maintains the Royal Panda trademark which will provide LeoVegas with the opportunity to expand further in regulated gaming markets.  Royal Panda was launched in March 2014 and holds a license to operate granted by the U.K. Gambling Commission.

The announced purchase price comes to €100 million, with a possible earn-out payment of additional €60 million. The acquisition deal was expected to be finalised by December 1st 2017 after necessary regulations are met. The not so recent acquisitions and merger mergers have always kept pace with the growth of the industry although some of these purchases are massive and affect the whole business.

Competition is fierce in the global online gambling market and even stronger in the regulated jurisdictions such as the U.K. so firms that are bigger have a better chance of surviving the diverse market conditions.

Market conditions are brutal when they are constantly changing or threatened by amended regulations and platform changes. Now online gambling operators have to contend with the extra expenses of cyber security, legal issues, advertizing opportunities and government fees which are difficult to handle for  start ups and smaller firms.

Mergers and deal making is a big part of the internet betting industry, it makes betting on the industry a game of its own.  

 

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