Gustaf Hagman, the former CEO of LeoVegas, reflects on his 14-year tenure with the company. His journey culminated in a series of prestigious industry awards and the substantial sale of LeoVegas to MGM Resorts for over $600 million, generating billions in cumulative online revenue. However, his reflections also acknowledge a shift from present to past achievements, signaling a new chapter in his career.
Hagman’s departure marks the beginning of a new era for LeoVegas, with Mattias Wedar assuming the CEO role. His leadership saw the company grow from a modest five-game launch to a current library of 6,000 games, along with a significant expansion of its workforce to thousands of employees across multiple international locations.
Hagman’s Entrepreneurial Spirit
Despite his remarkable success, Hagman reveals that his leadership style isn’t ideally suited to the scale LeoVegas has achieved. He thrived in the entrepreneurial environment of a smaller company, where he could directly interact with employees and maintain a comprehensive understanding of the organization’s challenges. The rapid growth of LeoVegas, however, made this style of management increasingly difficult to sustain. While acknowledging his strong leadership capabilities, Hagman admits his preference lies in fostering innovation and building new ventures. He describes his experience as “a hell of a ride.”
Two CEO Archetypes
This leads to a discussion on the differing leadership styles within the industry. Hagman suggests a dichotomy exists between CEOs who excel at building and scaling new businesses and those who are more adept at managing established organizations. He offers his own experience as an example, describing how he created an internal entrepreneurial hub in 2017-2018 to counter the growing corporate structure of LeoVegas, a need that became more apparent just before the company’s initial public offering. He identifies two distinct CEO profiles: those driven by innovation and team building, and those focused on executing established business plans and strategic forecasting.
At the height of his entrepreneurial passion, Hagman even questioned the necessity of a Board of Directors, later acknowledging this perspective as characteristic of an entrepreneurial CEO. He recounts a conversation with Per Norman, former Chairman and CEO of Mr Green, where they discussed the role of a board in 2018.
Significant Industry Shifts
Hagman’s departure was marked by a video conference attended by several prominent figures in the Scandinavian gaming industry, highlighting his significant influence. Reflecting on the industry’s evolution over the past 15 years, Hagman identifies three key areas of transformation: regulation, product development, and operational processes.
Regarding regulation, Hagman notes a significant increase in awareness surrounding problem gambling and responsible gaming practices. He observes a clear distinction between operators prioritizing responsible gaming and those operating in less regulated markets. LeoVegas, under MGM’s ownership, is actively involved in educating regulators on best practices.
The product landscape has seen substantial shifts, with poker’s popularity waning, giving way to the dominance of slots and the emergence of live casino games and game shows. While some segments are relatively stagnant, sports betting has experienced rapid growth, particularly in live betting, live data integration, bet builders, and accumulator bets. Hagman notes a surprising lack of innovation in the lottery sector, where government involvement remains substantial.
Finally, operational changes have been profoundly impacted by advancements in artificial intelligence, particularly machine learning. Hagman highlights its growing presence across various departments within LeoVegas, improving efficiency in development, customer support, and CRM platforms.
The Acquisition by MGM Resorts and Beyond
A major milestone for LeoVegas was its acquisition by MGM Resorts International in 2022 for approximately $607 million. While Hagman continued as CEO for three years, MGM’s influence shaped LeoVegas’ trajectory, including the acquisition of Push Gaming and the international expansion of the BetMGM brand. Hagman emphasizes MGM’s collaborative approach, allowing LeoVegas operational independence while benefiting from MGM’s financial resources and industry expertise. He mentions other acquisition proposals, including from smaller land-based operators and an investment firm, but found MGM to be the best fit due to shared values and industry knowledge. A meeting with MGM CEO Bill Hornbuckle played a crucial role in solidifying the partnership.
Market Experiences and Regulatory Perspectives
Hagman shares his experiences in various markets. He cites Sweden as his favorite due to familiarity and strong brand recognition, while highlighting Brazil as the most exciting due to its growth potential. He expresses disappointment with the regulatory environments in Germany and the Netherlands, where licensed operators face challenges and a lack of disincentive for illegal operations. Conversely, he praises the UK Gambling Commission for its engagement and receptiveness to industry concerns, citing his participation in roundtable discussions. He highlights the positive impact of Andrew Rhodes’ leadership as CEO, advocating for greater collaboration and information sharing among European regulators.
A New Chapter
Hagman’s future plans involve a well-deserved break, followed by exploration of investment opportunities outside the iGaming sector. While acknowledging the valuable transferable skills gained in the fast-paced gaming industry, he expresses a desire for a change of pace and industry. He intends to focus on investments in non-gaming companies and explore new ventures, potentially in the rapidly evolving field of AI. Despite stepping away from the day-to-day operations of LeoVegas, Hagman anticipates remaining active in the business world for at least another decade.
