Online casino group gets into live streaming

The LeoVegas mobile gaming group has, through its wholly owned subsidiary LeoVentures Ltd, signed an agreement to acquire 51 percent of the shares in GameGrounds United AB, which owns the streaming network Casinogrounds.com.

The consideration is SEK 30 million, with a potential, maximum earn-out payment of SEK 15 million. Based on LeoVegas’ assessment, the full earn-out payment will be made.

CasinoGrounds is the leading live streaming site for casino games via YouTube and Twitch. The acquisition is expected to close on 1 January 2018.

GameGrounds United AB operates the site www.casinogrounds.com, which has rapidly become a casino streaming platform with an active and social casino forum. The company cooperates with both operators and game makers in the industry.

CasinoGrounds had revenue of SEK 4.1 million during the third quarter of 2017, with good profitability. The acquisition initially will not have any significant effect on LeoVegas’ net profit.

Gustaf Hagman, LeoVegas’ Group CEO, said:

“In CasinoGrounds we see a new behaviour in which persons are watching others play casino games via YouTube and Twitch. CasinoGrounds has created a new niche through its live streaming and social platform, which are highly appreciated by players.

“The combination of proprietary content and the moving picture format create exciting opportunities going forward and is in line with LeoVegas’ strategy to be an innovative and entrepreneur-driven company.

“LeoVegas has had successful cooperation with CasinoGrounds since 2016, and we know their team well. Our ambition is now to scale up existing operations to more markets.”

The agreement includes an option to purchase an additional 29 percent of the shares in 2021 or 2022 at 5 times operating profit (EBIT multiple).

The deal comes after LeoVegas last month completed its acquisition of Web Investments Limited, the company behind the Royal Panda gaming operator brand.

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