Beyond the Odds: Gustaf Hagman on leaving LeoVegas after a “hell of a ride”

“It’s been an amazing 14 years,” reflects Gustaf Hagman, the former LeoVegas CEO, as he sits down with Gambling Insider for an in-depth chat. 

You wouldn’t really expect any different after a string of Global Gaming Awards, a $600m+ sale to MGM Resorts and billions in cumulative online casino revenue. Yet there is still an element of his quote that may unsettle readers: the fact it is now looking back at past – not present – achievements. 

Indeed, it’ll certainly take some getting used to that Hagman will no longer sit atop the LeoVegas helm, with Mattias Wedar the new CEO charged with leading the organisation. 

Hagman’s 14-year journey since founding LeoVegas saw the online – and, really, the apt word here is mobile – operator go from having five games during the brand’s launch to a library of 6,000 today. There is also the small matter of the four-digit number of workers under LeoVegas’ employ across international offices. 

But, if you’ve read the CEO Special interview we conducted with Hagman in 2021 (we dubbed it the Entrepreneur’s Tale), you’ll know that this is not where the Swede’s sweet spot lies. “Being an entrepreneur, when we started LeoVegas, I did not really see myself leading a company of this size,” he tells Gambling Insider, hinting at his main motivation for calling it a day with his most successful career venture yet. 

“It was optimal for me up until we were a couple of hundred employees, but then it becomes too large. I like to be able to walk the floors, talk to people and get all the names, understanding on a high level all the different challenges and departments. But when you grow that fast, as we’ve been doing, it’s hard to stay on top of everything.”

While LeoVegas employees can attest that Hagman’s abilities as a leader did not diminish as the company grew, it’s clear where his entrepreneurial preference lies.

Either way, it isn’t lost on Hagman that it has been “a hell of a ride.” 

Two types of CEO 

To the LeoVegas Co-Founder’s point, though, we can’t help but ask – are there two distinct subcategories of CEO? Perhaps it is a little too black and white of a description, but we have seen over the years that some executives prefer the thrill of creating something new and growing a fledgling business. Others are better suited to the ‘corporate’ environment of established boardrooms. 

Hagman subscribes to our theory. “It is 100% like that,” he states. “I can give you an example: in 2017-2018, when I felt this company was growing too fast, I created an entrepreneurial hub internally. With my own little team, 10-15 people, we explored the opportunity to develop new brands. So that was probably a part of me that wanted to maintain the entrepreneurial feeling because we started to get very corporate, essentially right before the listing of the company. 

“So I think in that sense, yes, there are two types of CEO, ones that are better at the innovation part, growing the company, gathering the right kind of people and a great team. Then, there are the CEOs who are good at continuing the business plan, so to speak, and those guys are probably better on follow-ups and forecasts in the boardroom.”  

After 14 “amazing” years leading LeoVegas, Hagman is looking ahead to pastures new

At the peak of his entrepreneurial spirit, Hagman even went as far as believing a company is better without a Board of Directors. Although he now “completely understands” that is not the correct way to run a business, the Swede’s dislike of the concept is “typical of an entrepreneurial CEO.” 

Anecdotally, he recalls a conversation with Per Norman, former Chairman and CEO of Mr Green, as far in as 2018 – when the pair asked each other “do we really need a Board?” 

A three-pronged shift 

Demonstrating Hagman’s impact on gaming, Norman was one of several industry veterans present at a recent send-off video conference for the outgoing CEO. Joining Norman in attendance were Pontus Lindwall, Betsson AB CEO, Ulrik Bengtsson, former William Hill CEO, Hasse Lord Skarplöth, ATG CEO, Jesper Kärrbrink, former Svenska Spel and Mr Green CEO – and many more. 

Certainly, they read like a who’s who of Scandinavian gaming – which as we’ve explored before is such an influential region within this sector. Together, these names have both witnessed and affected significant industry change over the last two decades.  

This year, we at Gambling Insider are celebrating our own 15-year anniversary, which rather overlaps with Hagman’s LeoVegas journey – almost to the year. When we look back with Hagman on just how the industry has changed in that time, he pinpoints three main areas: regulation, product and operations. 

“Fifteen years ago, the understanding about problem gambling and behaviours was not as extensive as it is today. In certain countries over the years, I think it has become clearer and clearer what type of operator you are: either you are on the white side, so to speak, or you’re on the grey/black side. Either you are taking a responsible stand and trying to drive that path together with regulators and the community, or you’re standing on the other side – continuing to harvest money because it’s easy to do it on the black market.” 

LeoVegas today is working with parent company MGM to “educate regulators” where it can, according to Hagman – but more on regulators later. 

On the product side, “a lot has happened.” Poker, of course, played a significant part in gaming history, with Hagman reflecting on a poker boom (in the early 2000s) that somewhat dissipated, allowing slots to become king, before live casino made its move with game shows adding to the offering. 

Although, generally, Hagman feels most gaming segments are “standing still a little,” he can’t help but reflect on the developments made in sports betting over the years, with the focus shifting from pre-match to live betting, and live data, bet builders and accumulators coming to the fore. 

On the lottery side, the executive is surprised by a lack of innovation and that various governments still play such a leading role in the vertical’s provision – like in his native Sweden. Maybe change will be afoot in the future, Hagman ventures, but we can only speculate for the time being. “One thing is for sure: gaming is here to stay. People always want to get entertained, right?” 

If you were paying attention earlier, you’ll now be waiting for the ‘operations’ segment that concludes Hagman’s theorem. The biggest change here, though, is perhaps one most developers can predict… Yes, AI has defined operational change. 

When we spoke for Hagman’s CEO Special interview back in 2021, AI was already becoming more and more prominent within gaming. Today, it is the single biggest technological trend in every major industry worldwide. 

In fairness, Hagman is keen to downplay the use of AI as a ‘buzzword,’ zoning in more specifically on machine learning. “We can see it throughout LeoVegas in various ways,” he muses. “Our developers are using it and customer support is using it; the CRM platforms are using it. More and more, you can see AI throughout the company and that will naturally make us more efficient.” 

Two Lions coming together 

As for LeoVegas’ own journey, an unmissable highlight was its 2022 acquisition by land-based giant MGM Resorts International. In May of that year, MGM purchased LeoVegas for approximately $607m, creating the dream exit scenario for any entrepreneur. 

Although Hagman remained CEO for another three years, MGM would understandably change the course of LeoVegas’ history. The operator, under MGM’s parentage, would go on to itself acquire developer Push Gaming a year later (May 2023) while also launching the BetMGM brand internationally – most profusely in the UK. 

BetMGM made a big splash upon its UK entrance, with brand ambassador Chris Rock ‘slapped’ across billboards and TV adverts – not in the Will Smith sense

“I was keen on partnering up or selling LeoVegas to a company that shared the same values and would let us to continue to grow,” Hagman reflects. “I think we couldn’t find a better partner than MGM. The guys over there are awesome and really good at providing us with funds and direction. 

“But they gave us independence during these three years, too. We launched BetMGM in the UK, Sweden and the Netherlands. In Brazil, we have a joint venture with Grupo Globo, and it’s truly been very exciting to utilise MGM’s IP rights. We also have Push Gaming building slots based on MGM, so we have a strong connection to the land-based casino side and, now, they’re getting a strong connection to the iGaming world as well.” 

There were, however, other buyers simultaneously evaluating LeoVegas as an M&A proposition. Some, Hagman says, were of a similar profile to MGM in that they were land-based B2C operators – albeit smaller companies. Interest also came from an investment firm, although here Hagman saw no additional benefits in the shape of industry knowledge or guidance. 

One factor that helped persuade Hagman was a meeting with MGM CEO & President Bill Hornbuckle. Another past CEO Special interviewee, Gambling Insider can attest that Hornbuckle is a people’s person. It is, therefore, no surprise his charisma added a little extra to negotiations. 

“When I met Bill, he said ‘Gustaf, we’ll have two lions coming together. Have you thought about that?’ He is very into our brand and what we’re doing. He is always interested in how we think about the brand and its positioning, and he has a huge understanding of all the markets we are entering.” 

From Stockholm to São Paulo 

Through LeoVegas and, later BetMGM, Hagman has experienced brand launches in multiple markets. Which is his favourite – and least favourite? 

“My favourite market is Sweden because, of course, I know Sweden so well and we’re a strong name in the Swedish market. 

“But the most exciting is Brazil – where we are a B2B platform supplier – given the numbers, the progress and the opportunity.” 

In terms of disappointments, Hagman points to Germany and the Netherlands, where he feels it is “a shame” regulators are making it “very hard” for operators. The Swede holds the belief that, in these markets, licensed operators are not rewarded with better business conditions and that there is no real remonstration for operating outside the law. 

When it comes to regulators, however, Hagman does have positive words for the Gambling Commission in the UK. Despite having the advantage of being around for “some time” given the market’s longer history, the exec is still impressed by the Commission’s industry engagement and receptiveness – best demonstrated by Hagman’s own attendance at several roundtable discussions in Birmingham. 

Our conversation naturally moves on to Andrew Rhodes, Gambling Commission CEO, because both Gambling Insider and LeoVegas have been on the receiving end of greater willingness to cooperate since he took charge; first, in June 2021 as Interim CEO, before taking the permanent role in June 2022. 

“He’s great. Maybe we don’t agree with everything he says, but at least there are clear directions and he wants the same thing as the industry. Other countries in Europe should look more at what they’re doing in the UK. I just wish there was some kind of European forum to discuss things, maybe as often as 2-3 times a year, to share ideas. That would have been very helpful because, today, it’s still very isolated; countries are doing what they think is best for them and not really looking at what others are doing.” 

Mattias Wedar is the CEO charged with leading LeoVegas forward

A non-iGaming future 

So what next for Hagman, now that his tenure as Mr LeoVegas is no longer? 

While a Spring return is likely, a well-earned break is top of the agenda. Besides, Hagman may be set to follow a similar path to ex-Sky Bet CEO Richard Flint, who is now an investor in numerous non-gaming brands (including Butternut Box – a dog food advertised as tasty enough for human consumption). 

Indeed, although the “very high pace” of the gaming industry leaves execs with highly transferable skills, as Hagman puts it, his future looks set for other industries. 

“I’m a little bit tired of iGaming,” he declares. And, after so long, who can blame him? This is not a slight on the sector, as Hagman’s enthusiasm to do with all things casino and LeoVegas has been apparent throughout our conversation. 

But, sometimes, change is needed. 

“I’ve invested in a handful of companies and I’ll look into a few of them a little more. None of them are in gaming,” he explains. “But, first of all, I’m going to take a deserved break. 

“There’s so much happening. I shouldn’t just highlight Stockholm, but I have a lot of entrepreneurial friends and they’re all into AI these days. I have great friends doing massive stuff, so I’m starting to have lunches with them and gaining a little bit of interest in other sectors as well.” 

While Hagman is happy to let fate decide what the future brings, he believes he has “at least 10 years” before permanent retirement. And, if his last decade is anything to go by, the Swede’s legacy is far from concluded.