Gustaf Hagman, former CEO of LeoVegas, recently reflected on his 14-year tenure with the company. His accomplishments include multiple Global Gaming Awards, the $600 million+ sale to MGM Resorts, and billions in cumulative online revenue. However, he’s now looking back on past successes, marking a significant shift in his professional life.
Hagman’s departure leaves Mattias Wedar as the new CEO. His journey with LeoVegas began with a mere five games and culminated in a vast library of 6,000 games and thousands of employees across numerous international offices. However, Hagman revealed that leading a company of this scale wasn’t his primary motivation. He thrived in the entrepreneurial phase, preferring closer interaction with employees and a comprehensive understanding of every aspect of the business. The rapid growth of LeoVegas made this increasingly difficult.
Hagman’s comments sparked a discussion about distinct CEO archetypes. He posits two categories: those who relish the creation and growth of new ventures, and those better suited to the structured environment of established corporations. Hagman identifies with the former, noting that during a period of rapid expansion, he even created an internal entrepreneurial hub to maintain that sense of innovation.
He further explained that there are CEOs who excel at innovation and building teams and others who are better suited for managing established businesses and focusing on established plans and forecasts. He even shared his past skepticism towards boards of directors, a sentiment he now acknowledges as incorrect, but one characteristic of entrepreneurial CEOs.
This perspective was further emphasized by a past conversation with Per Norman, former Chairman and CEO of Mr Green, where both questioned the necessity of a board of directors. This led to a discussion about the significant changes in the gaming industry over the past 15 years.
Hagman highlighted three key areas of transformation: regulation, product offerings, and operations. He observed a significant increase in awareness surrounding problem gambling, resulting in a clearer distinction between responsible operators and those operating in less regulated markets.
On the product side, Hagman noted the evolution of online gaming, from the initial poker boom to the dominance of slots and the rise of live casino games and game shows. While he sees some segments as somewhat stagnant, he emphasized the dynamic advancements in sports betting, particularly the increasing popularity of live betting, live data, bet builders, and accumulators.
He also observed a lack of innovation in the lottery sector, surprised by the continued significant involvement of governments in its provision.
The final area of significant change is the impact of AI and machine learning. Hagman highlighted the widespread use of these technologies throughout LeoVegas, enhancing efficiency in development, customer support, and CRM platforms.
The 2022 acquisition of LeoVegas by MGM Resorts International was a pivotal moment. Hagman remained CEO for another three years, overseeing the acquisition of Push Gaming and the international expansion of the BetMGM brand. He praised MGM for their support and respect for LeoVegas’ independence. He specifically mentioned the successful launches of BetMGM in the UK, Sweden, and the Netherlands, and a joint venture in Brazil with Grupo Globo.
Hagman also discussed the selection process for the acquisition, noting interest from other land-based operators and an investment firm. The deciding factor in choosing MGM was a meeting with their CEO and President, Bill Hornbuckle, whose personal charm significantly influenced the decision.
Hagman’s favorite market is Sweden, where LeoVegas holds a strong position. However, he considers Brazil the most exciting due to its potential. He expressed disappointment with the regulatory environments in Germany and the Netherlands, critical of the lack of incentives for licensed operators and the lack of consequences for illegal operations. He praised the UK Gambling Commission for its industry engagement.
Looking to the future, Hagman plans a break before exploring opportunities outside the iGaming industry. While acknowledging the transferable skills developed in the fast-paced gaming sector, he intends to pursue ventures in other fields, having invested in several non-gaming companies. He anticipates at least another 10 years before retirement.
