LeoVegas hails “milestone” after 12-brand technology migration
Operator moves Rocket X-managed brands off third-party tech platform as cost-saving strategy continues
LeoVegas has completed the migration of its UK-facing Rocket X-managed brands onto its own in-house platform and away from legacy third-party platform software.
This brand migration encompasses several brands including 21.co.uk, Bet UK, Pink Casino and is part of a group-wide cost-saving strategy to try and achieve annual cost savings of €3.7m.
All Rocket X-managed brands will now be on the group’s own multi-brand tech platform Rhino, meaning all UK business will now be run from the same stack.
The cost-saving measures, including the UK technical migration, are expected to result in annual cost synergies of €2m for LeoVegas in areas including marketing, payments and customer service, although costs will be incurred for the early termination of third-party agreements.
The Malta-headquartered operator claimed that ownership and control of the technology platform creates a “strong competitive advantage” for the business in dealing with compliance-related issues.
“The switch from a third-party provider means that the group now has full control over all technology, and it reduces the complexity of daily operations,” LeoVegas said.
LeoVegas CEO Gustaf Hagman
LeoVegas CEO Gustaf Hagman said he was “extremely impressed” by how quickly the migration of the brands was carried out, particularly given that all LeoVegas UK employees have been working from home during the Covid-19 lockdown.
“This is a milestone for the entire group, but above all for our technology organisation and all of our employees who work in the UK market,” Hagman said.
LeoVegas has instituted several measures as part of a UK cost-saving strategy to mitigate the effects of increased taxation and compliance demands in the UK market, including the brand migration.
The operator has also called off a planned office move as part of the cost saving measures which has seen the firm write-off €10m of losses relating to the acquisition of Royal Panda.
“The migration to our own platform makes us even more scalable, and our brands in the UK will now be able to benefit from all of the innovation that is developed on our platform,” said Hagman.
“We have high aspirations for our brands in the UK, and this migration is a great step for us in delivering according to our vision to be King of Casino in all our markets,” Hagman added.