Gustaf Hagman, the former CEO of LeoVegas, recently reflected on his 14-year tenure with the company. His accomplishments include numerous Global Gaming Awards, the $600 million+ sale to MGM Resorts, and billions in cumulative online casino revenue. However, he acknowledges this is a retrospective look at past successes, as he steps away from the company’s leadership.
Mattias Wedar has assumed the CEO role, succeeding Hagman. Hagman’s journey began with a five-game mobile platform and culminated in a company boasting 6,000 games and a workforce numbering in the thousands across multiple international offices.
Despite this remarkable growth, Hagman reveals a desire to return to a smaller, more entrepreneurial scale. He thrived in the early years when he could directly interact with employees and understand company-wide challenges firsthand. The rapid expansion of LeoVegas, however, made this style of leadership unsustainable. While acknowledging his leadership skills remained strong throughout the company’s growth, his entrepreneurial preference became increasingly apparent. He describes his time at LeoVegas as “a remarkable journey.”
This raises a question: are there fundamentally different types of CEOs? Some excel at building and scaling startups, while others are better suited to the established structure of large corporations. Hagman firmly believes in this dichotomy. He exemplifies this by citing his creation of an internal entrepreneurial hub in 2017-2018, a response to the company’s rapid expansion and growing corporate structure leading up to its initial public offering. He distinguishes between CEOs adept at innovation and growth versus those more skilled at managing established operations and long-term strategic planning.
At one point, Hagman even questioned the necessity of a Board of Directors, a sentiment he now understands was misguided but characteristic of an entrepreneurial CEO. He recalls a conversation with Per Norman, former Chairman and CEO of Mr Green, where they discussed this very topic in 2018.
Hagman’s influence on the gaming industry is evident in the numerous industry veterans who participated in a farewell video conference, including prominent figures from Betsson AB, William Hill, ATG, and Svenska Spel. These individuals represent a significant portion of the Scandinavian gaming sector’s leadership, a highly influential region within the global industry.
Reflecting on the industry’s transformation over the past 15 years, Hagman identifies three key areas of change: regulation, product offerings, and operations. He notes a significant increase in awareness of problem gambling and responsible gaming practices, leading to a clearer distinction between ethical and unethical operators. LeoVegas, now under MGM’s ownership, actively works with regulators to promote responsible gaming practices.
In terms of product development, Hagman highlights the shift from the poker boom of the early 2000s to the dominance of slots, followed by the rise of live casino games and game shows. While he observes stagnation in most segments, he notes the significant evolution of sports betting, with a marked increase in live betting, live data utilization, bet builders, and accumulator bets. He expresses surprise at the lack of innovation in the lottery sector, where governments continue to play a dominant role. He concludes that the gaming industry is here to stay, driven by the enduring human desire for entertainment.
Regarding operational changes, Hagman emphasizes the transformative impact of AI, particularly machine learning. He downplays the overuse of “AI” as a buzzword, focusing instead on the practical applications of machine learning across various departments, including development, customer support, and CRM platforms, ultimately increasing efficiency.
The acquisition of LeoVegas by MGM Resorts International in 2022 marked a pivotal moment. This acquisition provided a desirable exit strategy for Hagman and opened new avenues for LeoVegas, including the acquisition of Push Gaming and the international launch of the BetMGM brand. The launch of BetMGM in the UK was particularly notable.
Hagman emphasizes that MGM was chosen for its shared values and its commitment to LeoVegas’ continued growth. He praises MGM’s provision of funding and direction while respecting LeoVegas’ operational independence. The collaboration includes joint ventures, leveraging MGM’s intellectual property rights and developing MGM-themed slots. Other potential buyers were considered, including smaller land-based operators and an investment firm, but MGM’s industry expertise and personal connection with CEO Bill Hornbuckle proved decisive.
Hagman reflects on his experiences launching brands across various markets. While he holds a particular fondness for the Swedish market, he finds Brazil, where LeoVegas operates as a B2B platform supplier, most exciting. He expresses disappointment with the regulatory environments in Germany and the Netherlands, criticizing what he perceives as overly restrictive regulations that don’t adequately reward licensed operators. Conversely, he commends the UK Gambling Commission for its engagement and receptiveness, highlighting his participation in roundtable discussions. He particularly mentions Andrew Rhodes’ leadership of the commission, advocating for a more collaborative European forum on gaming regulation.
Looking ahead, Hagman anticipates a break before pursuing new ventures outside the iGaming industry. While acknowledging the highly transferable skills developed in the fast-paced gaming sector, he expresses a desire for a change of pace. He plans to focus on his investments in non-gaming companies. He is also exploring other sectors, particularly AI, through interactions with his entrepreneurial network, anticipating a long and active career beyond his time at LeoVegas.
