The investigation is underway into the insider trading at Leovegas during the betMGM acquisition.
On the morning of June 7th, LeoVegas, the company in the midst of a merger with BetMGM, received a visit from SECA, a Swedish government agency responsible for investigating and prosecuting financial crimes. Their purpose was to notify LeoVegas of an ongoing investigation into potential insider trading. LeoVegas, being cooperative and committed to transparency, readily offered their assistance in the investigation.
Insider trading refers to the purchase or sale of securities based on unpublished information. An extensive inquiry is currently underway to discern the reasons behind the surge in stock prices several weeks before the offer was made by BetMGM casinos.
The LeoVegas group has issued a press statement, stating:
On June 7th, LeoVegas came into contact with the Swedish Economic Crime Authority in relation to a preliminary investigation regarding alleged insider trading in the company's stocks. LeoVegas is providing full assistance to the authorities in their ongoing investigation.
No employee, management team member, or board member of the Company has been notified of any criminal suspicion. The Company does not have any further information to provide. Any issues relating to the preliminary investigation should be directed to the Swedish Authority for Economic Crimes.
According to an MGM company spokesperson, the statement provided by Leovegas is the only information currently available. We have received confirmation from a representative at MGM that they have no further comment on the matter at this time.
The drought further confirmed only the commencement of the investigations and declined to disclose further particulars.
Are the negotiations between LeoVegas and BetMGM ongoing?
On May 2, 2025, the New Jersey-based casino leader BetMGM made a whopping billion-dollar offer to the Swedish company LeoVegas. This remarkable development signifies the magnitude of the deal, valued at a staggering 3 billion rand.
LeoVegas was prepared to accept the offer presented by BetMGM and conclude the acquisition in August of this year. In his most recent statement regarding the merger, Gustav Hagman, CEO and co-founder of LeoVegas, expressed great enthusiasm about the amalgamation of the companies.
It remains uncertain whether the merger between the two companies will proceed following the news of a potential investigation into the LeoVegas group. However, similar to previous instances involving Swedish authorities accusing other companies, this matter may take several months to resolve. Nevertheless, the authorities do not possess the legal authority to impede the acquisition from moving forward.
It appears that the news has not affected LeoVegas' stocks. The group's shares have slightly declined, approximately by 0.17%.
And the BetMGM group with a decline rate of 0.25%.
In our opinion, the impact on our rating for LeoVegas among South African players is negligible. This is primarily due to the apparent involvement of external individuals who were using and trading the information. It seems that no one within the administration of Leovegas engaged in any suspicious activities. Therefore, we confidently award Leo a solid 5-star rating.