LeoVegas sells subsidiary Authentic Gaming to Genting

LeoVegas announced Wednesday that it has entered into an agreement to sell its subsidiary Authentic Gaming to Genting. The sales price is EUR 15 m (USD 16.6 M) on a debt-free basis and represents a return of more than 100% during a slightly more than three-year period.

Gustaf Hagman, Group CEO, LeoVegas Mobile Gaming Group: "This is a milestone for LeoVegas. The time is now right to sell the enterprise to the industry giant Genting, which is the perfect buyer to take Authentic Gaming to the next level. The deal shows our innovative strength in the Group and our ability to develop and build sustainable companies. We have thereby created shareholder value with more than a 100% return on our investment in Authentic Gaming."

Authentic Gaming, one of the three holdings included in LeoVentures, the LeoVegas Group's investment company for innovative gaming-related businesses, has developed into a profitable company with a prominent position in its niche in the live casino market.

"We have now laid the foundation for Authentic Gaming to take its next big step in live casino," comments Jonas Delin, CEO and founder of Authentic Gaming. "I am very happy that Genting, with more than 50 years of experience in gaming and entertainment, shares our vision to weave online and land-based casino and has chosen to invest in our product and team. At the same time, I want to thank LeoVegas for their tremendous support since the start and for the platform that LeoVentures has created for us to take us to where we are today."

Genting, with over 50,000 employees, is one of the world's largest groups in land-based casino with a rapidly growing digital business arm.

The purchase of Authentic will see Genting utilize a range of Authentic’s innovative in-club streaming technologies and expertise across its land-based and digital estate, both in the UK and internationally. This will help fuel Genting’s growth in the live casino sector both in the UK and across Europe, which analysts estimate to be worth €2.5 billion in Europe alone.

"Our global presence in land-based casino gives us a platform to grow online at a fast pace. Our vision is to offer our customers an amazing gaming experience from all of our casinos around the world, 24 hours a day through any device. With Authentic Gaming's advanced technology and innovative product, we are convinced that together we have a good position to realize that vision," said Jeremy Taylor, Managing Director of Genting Online. “With their cutting-edge technology and innovative product capabilities we believe that Authentic are well placed to help us realize that vision. They are a relatively young business who are bringing fresh thinking to the market place, so now is the perfect time to start working with them to fuel the future success of both businesses.”

Authentic will continue to operate independently, with Genting Group looking to support the company's continual innovation and expansion. Genting will also continue to work with its existing and other new partners as it develops and diversifies its live casino product offering.