PayPal switch-off has “20-30%” hit on LeoVegas Germany revenues
Operator says market revenues are growing again from a lower base after “one-time hit”
The switch-off of PayPal for online casino companies in Germany cost LeoVegas “20-30%” of its revenues from the market, the operator revealed yesterday.
PayPal was initially put under pressure to stop facilitating online casino payments in Q2 and complied in Q3, with an impact of €1m-€1.5m a month for LeoVegas, equivalent to “20-30%” of German revenues.
Group CEO Gustaf Hagman said he did not expect other payment providers to follow suit, with PayPal in an “extraordinary situation” with pressure from its US headquarters.
Hagman said the operator was working towards pushing customers to other payment solutions and the setback was a “one-time hit”.
“The loss of PayPal moved us down a step, but we are now growing again from that step,” Hagman said. “The remaining part of player base has shown continued strong development.”
Gustaf Hagman
Hagman said the drop-off was relatively unique because the German market had a player base “quite dedicated to a specific payment provider”.
LeoVegas holds a sports betting and casino licence in the state of Schleswig-Holstein thanks to the acquisition of Germany facing sports betting operator World of Sportsbetting Ltd for €2.6m back in February 2018.
Hagman was talking after the firm’s Q3 results yesterday where revenues climbed 13%cc to €88.2m, with EBITDA up 40% to €12.7m.