The land purchases, according to Red Rock Vice Chairman Lorenzo Fertitta, “are consistent with the approach we’ve had for a long time.”
Scott Kreeger, president of Station Casinos, continued, “Development parcels of this type are simply not available in Las Vegas any longer.”
Southwest of Las Vegas, Red Rock is in the process of building the $750 million Durango Station.
“We look forward to welcoming the LeoVegas team and are excited to begin working with them to grow our global digital gaming business and maximise the full potential of our omnichannel strategy.”
Since 2014, LeoVegas has become a profitable high-growth platform. LeoVegas’ revenue compound annual growth rate from 2017 to 2021 was 16% while retaining high profitability. The merged businesses will be able to grow within already-existing gaming segments and create incremental chances to enter new ones thanks to MGM Resorts’ scale, branding, and expertise.
LeoVegas, which was founded in 2011 by Gustaf Hagman and Robin Ramm-Ericson, holds licenses in nine countries, mostly in the Nordic region and the rest of Europe. During the twelve months ending June 30, LeoVegas generated €46 million in adjusted EBITDA and €394 million in revenue. The company has offices in Malta, the United Kingdom, and Milan in addition to its headquarters in Stockholm.
“Joining forces with MGM Resorts is a major win for LeoVegas and we’re excited to begin working with our new teammates to build upon the work we’ve done over the last 10 years,” said LeoVegas Group CEO Gustaf Hagman.
“MGM Resorts is a premier gaming entertainment company and we look forward to leveraging their expertise to further our long-term strategic goals.”