LeoVegas ramps up Pixel.bet esports investment
Mobile casino operator increases stake from 51% to 85% after esports growth during Covid-19
LeoVegas has increased its investment in Malta-based esports betting operator Pixel.bet by 34%, taking its stake in the business to 85%. Financial terms of the additional investment were not disclosed, however EGR understands it was an option taken up by LeoVegas relating to the initial acquisition. LeoVegas acquired 51% of Pixel Holding Group Limited in September 2018 for €1.5m, marking its first foray into esports. At the time, LeoVegas group CEO Gustaf Hagman cited the deal as enabling the firm to “gain unique insight into a new and fast-growing segment”. The stake increase was revealed in Stockholm-listed operator’s Q2 2020 financial results, where a 17% Q2 revenue growth spike reflected a shift towards online casino during the Covid-19 lockdown. Speaking to EGR, Hagman highlighted increased revenue coming from the esports vertical during lockdown as a motivating factor in the decision to up stakes. “We think Pixel.bet are doing quite well, we’re seeing good numbers in the business,” said Hagman. “The good performance of the esports betting vertical during the recent international Covid-19 lockdown, coming as it did with the cancellation of sporting events, really motivated us to increase this initial investment. “It is a great existing team there and we are very happy with our additional investment,” he added. Dismissing any talk of a larger jump into esports betting, Hagman said LeoVegas would focus on its key online casino and mobile operations. “We’re not really looking to expand any more than we are doing already with Pixel.bet, we have an existing esports betting offering through our LeoVegas.com domain on the sports section but we’re not really targeting esports betting specifically,” he explained. “We prefer to leave that to the Pixel.bet business going forward,” he added. Pixel.bet offers sports betting on a number of esports games including CS:GO, DOTA 2, League of Legends, Hearthstone, Overwatch, Starcraft and Heroes of the Storm. The firm is headed up by Eirik Kristiansen and is licensed by the Malta Gaming Authority.