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LeoVegas AB Q4: Year-end report 2020
“Yet another record year for LeoVegas with a strong close” – Gustaf Hagman, Group CEO
fourth quarter 2020: 1 october–31 december
- Revenue increased by 13% to EUR 98.4 m (87.1). Organic growth in local currencies was 14%.
- Adjusted EBITDA was EUR 11.5 m (9.2), corresponding to an adjusted EBITDA margin of 11.7% (10.6%). Reported EBITDA includes EUR -3.5 m (5.3) in items affecting comparability.
- The number of depositing customers was 461,983 (372,032), an increase of 24%.
- Adjusted earnings per share were EUR 0.08 (0.06).
Events during the quarter
- LeoVegas was the first company in the gaming industry to offer payments via Open Banking.
- During the quarter the Group’s unique and record-large jackpot was launched under the name LeoJackPot.
- LeoVegas secured long-term and diversified financing through a combination of a bank credit facility (RCF of EUR 40 m) and a bond issue of SEK 500 m under a total framework of SEK 800 m.
- During the quarter, LeoVegas repurchased its own shares for approximately EUR 5 million.
- Ahead of the forthcoming regulation in Germany, a number of changes were implemented. This led to lower revenue during the quarter, with the greatest effect during the month of December.
- LeoVegas has changed its interpretation of the calculation of gaming taxes in Denmark for earlier periods. This resulted in a self-correction, and a one-off cost of EUR 3.5 m has been charged against EBITDA.
- Decision has been taken to migrate the Royal Panda brand to the Group’s proprietary technical platform.
Events after the end of the quarter
- Preliminary revenue in January amounted to EUR 32.5 m (29.9), representing growth of 9%.
- The Board of Directors proposes a raised dividend totalling SEK 1.60 per share (1.40), an increase of 14%, to be paid out on four occasions during the year.
COMMENT FROM GUSTAF HAGMAN – GROUP CEO
STRONG CLOSE TO 2020
LeoVegas concluded the record year 2020 with its strongest fourth quarter ever. And we did this despite frequent changes to the gaming requirements in our markets in addition to finding ourselves in the midst of a global pandemic. I am proud of our ability to quickly adapt to changed conditions through a high capacity for innovation at the same time as we are building an increasingly solid and diversified business. It is a demonstration of strength that LeoVegas delivered adjusted EBITDA growth of 25% for the full year while the operating cash flow increased almost 90 %. This was achieved despite maintaining a high investment pace with launches of new brands, new markets and product improvements.
During the fourth quarter we increased our revenue organically by 14%. Growth was mainly driven by a continued rise in depositing customers, which grew 24% to a new record level. Adjusted EBITDA increased by 25% during the quarter to EUR 11.5 m. Reported EBITDA was charged with a one-off provision of EUR 3.5 m related to a changed interpretation of the calculation of gaming taxes in Denmark for earlier periods.
MarkETS
With the exceptions of Sweden and the UK, our core markets showed high double-digit growth during the quarter. Above all I want to highlight Italy, which has now become one of our five biggest markets. During the quarter we launched the Pink Casino brand in Canada. The launch is part of our multibrand strategy, where we are utilising existing resources and our technical platform to expand through scale.
In the German market, LeoVegas has implemented a number of changes ahead of the forthcoming licence system in July 2021. As expected, this affected revenue during the period. Operators in the market are acting differently with respect to the new restrictions, and at present necessary clarity is lacking in the ongoing transitional period, which unfortunately has led to a skewed competitive situation until the licence system has been fully implemented.
TECHNOLOGY AND PRODUCTS
During the quarter we carried out and launched several major projects and innovations. In particular I want to highlight our new exclusive jackpot – LeoJackpot – where our customers can win over SEK 50 m directly from their smartphones. We were also first in the industry to offer payments via Open Banking. This will benefit LeoVegas and our customers in many ways, including through more secure and faster payments and lower transaction costs.
During the quarter we began the migration of Royal Panda to our joint technical platform. As a result, in 2021 all brands will be operated on the same platform. The migration will lead to cost synergies such as lower platform and product costs and a more efficient organisation. The decision has also resulted in impairment of intangible assets attributable to Royal Panda’s platform, which was charged against EBIT in the amount of EUR 1.9 m.
FINANCING AND INVESTMENTS
At the end of the year we secured the Group’s long-term financing needs through the combination of a renewed bank credit facility of EUR 40 m and a newly issued corporate bond of SEK 500 m.
Stable financing combined with a strong balance sheet gives us a solid base for continued expansion, both through organic initiatives and potential acquisitions. During the fourth quarter we carried out share repurchases for approximately EUR 5 m. In addition, the Board of Directors proposes an increase in the dividend to SEK 1.60 per share.
COMMENTS ON FOURTH QUARTER
Revenue for the month of January amounted to EUR 32.5 m (29.9), corresponding to annual growth of 9%. In January revenue was fully impacted by the changes carried out in Germany ahead of the forthcoming regulation.
On the tailwinds of a strong 2020 we are now looking forward to a year with many exciting growth initiatives and an even stronger customer offering.
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Why Swedish Players Are Turning to Betting Sites Without a Swedish License
It didn’t happen all at once. At first, most Swedish players simply adapted to the new regulatory framework. Then, gradually, something shifted. In practice, more users started looking beyond local options — and today, a growing number are choosing betting sites without Swedish license.
The reason isn’t just frustration. It’s more layered than that. Restrictions play a role, of course, but so do expectations, habits, and the way international platforms operate. Some players want more flexibility. Others just prefer fewer limitations when placing bets. Either way, the direction is clear.
For a broader industry perspective, the Financial Times has also covered how offshore-structured betting companies operated around Swedish rules, which helps illustrate why the tension between strict regulation and player flexibility has existed for years.
The Current Landscape of Gambling Regulation in Sweden
To make sense of this trend, it’s worth stepping back and looking at how the Swedish system is structured today. On paper, it’s one of the more controlled environments in Europe.
How the Swedish Licensing System Works
Sweden operates under a national licensing model where operators must meet strict requirements to legally offer services to local players. The system is designed to create transparency and reduce risk.
In reality, though, it also standardizes the user experience. Every licensed operator follows the same core rules — which means fewer variations across platforms.
From a regulatory perspective, it works. From a player’s perspective, it can feel a bit limiting over time.
Key Restrictions for Licensed Operators
This is where the differences become noticeable.
- A single bonus per player is allowed
- Mandatory connection to the Spelpaus self-exclusion system
- Tight control over advertising practices
- Certain limits affecting deposits and gameplay behavior
Having said that, these measures are not arbitrary. They are meant to protect users. Still, for more experienced bettors, they can feel restrictive rather quickly.
Why Players Are Exploring Alternatives
So what’s pushing players to look elsewhere? Not one thing — but a combination of factors that, together, make offshore platforms more appealing to certain users.
On one side, Swedish regulation provides structure and safety. On the other, it reduces flexibility. And that trade-off is exactly where alternatives start to gain attention.
From what we’ve seen when comparing different operators, a few consistent patterns emerge.
Key Reasons Behind the Shift
- More frequent bonuses
Outside Sweden, promotions are not limited to a single welcome offer. Reload bonuses, cashback, and recurring incentives are far more common. - Wider betting markets
International platforms often include niche sports, smaller leagues, and alternative betting formats that are not always available locally. - Higher betting limits
For players placing larger wagers, this becomes relevant quite quickly. Local limits can feel restrictive after a short time. - More flexible payment options
Crypto, international e-wallets, and alternative banking solutions are typically easier to access outside the Swedish system.
That said, it’s not about one option being objectively better. It really depends on what the player values most — control or flexibility.
Key Differences Between Swedish Licensed and Non-Licensed Sites
| Feature | Swedish Licensed Sites | Non-Swedish Licensed Sites |
|---|---|---|
| Bonuses | Limited (one-time) | Ongoing promotions |
| Payment Options | Restricted | Wider variety |
| Betting Limits | Lower | Higher |
| Self-Exclusion | Centralized (Spelpaus) | Platform-based |
Looking at it this way, the contrast is quite clear.
At the same time, numbers only tell part of the story. What matters is how these differences affect the actual experience — and that varies from player to player.
Potential Risks and Considerations
Of course, there’s another side to this shift. And it’s important not to overlook it.
When players move outside the Swedish system, they also move outside its protections. In practice, more freedom comes with more responsibility.
What to Keep in Mind
- Licensing standards vary across jurisdictions
- Player protection tools may be less strict
- Dispute resolution processes are not always the same
- Terms and conditions can be more complex
We’ve seen both sides. Some platforms run smoothly, with clear processes and fast payouts. Others… less so. Often, the difference comes down to small details in the terms that aren’t obvious at first glance.
A useful industry perspective can be found in Yogonet’s “At the limit: where to draw the line on stake and deposit limits”, which links Sweden’s strict rules with the rise of offshore gambling.
How to Choose a Reliable Platform
For players who decide to explore these alternatives, choosing the right platform becomes essential. And honestly, this is where many mistakes happen.
Based on our comparisons and testing, a few checkpoints stand out.
Step-by-Step Selection Approach
Step 1: Check the license
Look for established authorities such as the Malta Gaming Authority or similar regulators. It’s not a guarantee, but it’s a strong starting point.
Step 2: Review payment methods
Reliable platforms are transparent about deposits and withdrawals. If the process is unclear, that’s usually a warning sign.
Step 3: Evaluate customer support
Fast, clear responses make a difference — especially when something goes wrong.
Step 4: Assess betting markets
Depth matters more than quantity. A consistent, well-structured offering is often better than an oversized one.
Responsible Gambling Still Matters
Even outside regulated systems, responsible gambling should remain part of the equation.
At the same time, without centralized tools like Spelpaus, players need to rely more on their own limits. Some platforms offer internal controls — deposit caps, session reminders — but they are not always standardized.
In the end, awareness becomes more important than regulation.
Final Thoughts
Ultimately, the shift toward non-Swedish licensed betting sites reflects a broader change in player behaviour. People are comparing more. Testing more. Looking beyond what’s immediately available.
On the other hand, regulation still plays a key role in trust and security. So this isn’t a one-direction trend — it’s more of a balancing act.
From what we’ve observed, the decision usually comes down to priorities. Some players prefer structure and safeguards. Others lean toward flexibility and variety. Both approaches coexist. And realistically, they will continue to.
The post Why Swedish Players Are Turning to Betting Sites Without a Swedish License appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
ELA Games
Pinatas Festival and Joker Winpot Earn SBC Europe Nominations for ELA Games
The studio is celebrated for its remarkable visual artistry with Pinatas Festival in the “Game Design & Art Direction” category, paired with a Game of the Year nomination for its popular title, Joker Winpot.
Two titles from ELA Games have received nominations in significant categories at the forthcoming SBC Awards.
A major highlight in the iGaming calendar, the SBC Awards Europe honor and celebrate the skill and creativity of the top suppliers and operators in the industry. The 2026 awards will take place at the Xara Lodge in Malta, expected to be a remarkable event featuring the industry’s leading innovators. Receiving these nominations reinforces ELA Games’ goal to revolutionize slot development for the European market via the distinctively engaging stories and intricate visuals of its games.
Among the studio’s most dynamic releases so far, Pinatas Festival has been acknowledged in the Game Design & Art Direction category, highlighting its festive theme, strikingly contrasting colored symbols, and energetic celebratory animations. Alongside it, Joker Winpot, selected for the Casino Entertainment – Game of the Year category, has excelled for the studio. The game features a meticulously crafted Joker on the reels, enchanting players with his playful yet somewhat sinister presence, expertly combining traditional casino visuals with the suspenseful excitement of the iconic Winpot mechanism.
Marharyta Yerina, Managing Director at ELA Games, commented on the nominations: “We are very pleased to be recognized by the SBC Awards in two such competitive categories. I personally love both of these games because they both feel incredibly distinct and full of character, the bright colours of Pinatas Festival make it feel like it is jumping out of the screen, so I am especially happy to see them up for awards. To also have Joker Winpot nominated for Game of the Year is a fantastic validation of the amazing Winpot mechanic.”
The winners will be revealed during the official SBC Awards ceremony on April 30th, where guests will come together to network and view the industry’s most thrilling new games showcased.
The post Pinatas Festival and Joker Winpot Earn SBC Europe Nominations for ELA Games appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
Asia
Skyesports and GodLike signs MoU with Maharashtra Cyber to promote esports and cyber hygiene in Maharashtra
India’s esports ecosystem is taking another step forward as Skyesports and GodLike Esports sign a Memorandum of Understanding (MoU) with Maharashtra Cyber, the Government of Maharashtra’s nodal cybersecurity body. The partnership aims to grow the state’s esports ecosystem while promoting cyber hygiene and responsible digital behaviour among gamers.
The agreement was signed during a closed-door meeting in Mumbai and reflects a broader push by the state to develop its digital and creative industries. As India’s leading state economy, Maharashtra is positioning itself as a hub for esports and gaming, aligning with its wider “orange economy” strategy.
Under the MoU, the three parties will collaborate on esports tournaments, leagues, and community initiatives, while embedding cyber safety messaging into all activities. This includes raising awareness around cyberbullying, fraud prevention, data privacy, and responsible online conduct—key concerns as esports audiences continue to grow, particularly among younger users.
Skyesports will lead tournament organisation and community engagement, while GodLike Esports will support through mentorship programmes, professional player involvement, and grassroots initiatives. Maharashtra Cyber will focus on amplifying cyber awareness and promoting safe digital practices across the ecosystem. Eyrie Entertainment will support outreach efforts and help scale campaign visibility across the state.
Commenting on the initiative, Shiva Nandy, Founder and CEO of Skyesports, said:
“The growth of esports requires strong collaboration between the industry and government stakeholders. This MoU with Maharashtra Cyber represents an important step toward strengthening Maharashtra’s esports ecosystem through responsible gaming initiatives and grassroots engagement. As India prepares to compete at global events such as the Esports World Cup (EWC), Esports Nations Cup (ENC), and the Asian Games 2026, partnerships like this will play a key role in building a stronger pipeline of talent and opportunities for young gamers. With GodLike Esports also joining the initiative, we aim to combine competitive expertise and creator reach to drive deeper community engagement. The MOU is a first-step towards solidifying Maharashtra as an esports hub globally.”
Yashasvi Yadav, Additional Director General of Police at Maharashtra Cyber, added:
“As esports continues to grow rapidly among young audiences, it is equally important to promote safe and responsible digital practices within the gaming ecosystem. Through this collaboration with Skyesports and GodLike Esports, we aim to raise awareness around cyber hygiene, online safety, and responsible behaviour in gaming communities. Initiatives like these will help ensure that the growth of esports in Maharashtra is supported by strong awareness of cybersecurity, digital discipline, and safe online participation.”
Chetan “Kronten” Chandgude, Founder of GodLike Esports, said:
“At GodLike Esports, we have always believed that the true growth of esports in India lies in strengthening its roots at the grassroots level. Through this collaboration with Maharashtra Cyber and Skyesports, we aim to support the state’s vision of building a strong and sustainable esports ecosystem. Our focus will be on engaging young gamers through mentorship, community initiatives, and professional player interactions, while also promoting cyber hygiene and responsible gaming practices. This MoU also marks the first step toward our vision of putting the state on the global esports map, and we look forward to sharing some exciting announcements around this soon.”
The initiative also aligns with global recommendations from organisations such as the International Telecommunication Union, which highlight the importance of cybersecurity awareness as digital participation expands.
For more on esports growth and regulation, see Europa Gaming’s coverage on India Esports Market Growth and Esports Regulation Trends.
As esports continues to scale in India, partnerships like this underline a key industry shift: growth is no longer just about tournaments and audiences, but also about building a safer, more responsible digital environment for the next generation of players.
The post Skyesports and GodLike signs MoU with Maharashtra Cyber to promote esports and cyber hygiene in Maharashtra appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
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