Many entrepreneurs dream of establishing a business that becomes a global household name and leaves a lasting legacy for them. The process of going from start-up to major in any industry is an onerous task, and it usually requires significant capital investment. Nowhere is this more true than in electronics, IT, and online gaming and gambling sectors, where new projects and ideas can devour apparently healthy budgets. Business founders often dilute their stock holdings as new investment partners come on board, which does not always create a work environment conducive to the entrepreneurial spirit.
When Gustaf Hagman and Robin Ramm-Ericson watched an iPhone screen spinning at a barbecue in Sweden in 2011, they probably had no idea how much they were going to shake up the online gambling world. They imagined a roulette wheel spinning on the iPhone screen and recognized that smartphones were going to be the driving force in online entertainment. They were inspired to create a mobile-first igaming platform when most legacy brands were still experimenting with browser-based versions for desktop and laptop devices.
The idea became a reality, and LeoVegas was established in 2012 with the two firmly at the helm. Their focus was on delivering an exceptional gaming experience for mobile devices, but they did not shy away from being available to play everywhere. As global gambling regulations were relaxed, the LeoVegas offering became an essential part of the commercial market.
In 2016, the company went public and acquired Royal Panda and Winga, enabling it to expand into regulated markets in Italy and Germany. In 2022, they were acquired by MGM Resorts International, which opened up the US market for them. Amazingly, despite being a household name for casino and sports betting across the country, they have still not launched in Pennsylvania. Fortunately, for iGamers in that state, expert gambling review site Casino.org has a curated list of the best online casinos in Pennsylvania, so no one needs to miss out on the fun. Casino.org rates LeoVegas highly when reviewing it in jurisdictions where it has a license to operate.
The story of the founders is an interesting one to follow. By the time the business was sold to MGM for $604 million, Hagman held approximately 8% of the stock, and Ramm-Ericson held 2-3%. Within ten years, they had gone from owning the company 50:50 to holding less than 10% between them. Let’s be honest, they were not financially hard done by, as it is estimated that Hagman earned around $48 million and Ramm-Ericson between $12 and $18 million, depending on his exact ownership.
However, what is clear is that once you sell your company or dilute shareholding in return for capital injections, you are no longer in the driving seat. While you might have the title, if the company wants to move in a different direction from you, it is almost certainly the company that will win out. This can be a hard lesson for even the most seasoned and successful entrepreneurs, as Gustav Hagman has recently discovered. He stepped down from his leadership position after overseeing a period of expansion in the sports betting division and has been replaced by Deputy CEO Mattias Wedar.
On his departure, he said,
“When we launched in Sweden in 2012, the industry was in its infancy, and we were sailing in uncharted waters. With a strong team, outstanding commitment, and a fantastic corporate culture, we navigated the course successfully and managed to become one of the leading international players – it is truly impressive.”
“Now, as part of the MGM family, LeoVegas Group is now stronger than ever, and it is the right strategic moment to pass the baton to Mattias Wedar.”
There is no indication that he was anything other than happy to move on, but it must have been a momentous decision to take. At the time of writing, there was no news of Ramm-Ericson’s future in the business.
Robin Ramm-Ericson is the Managing Director of LeoVegas’s subsidiary, LeoVentures Ltd., which focuses on innovation within the online gaming space. Given where the company came from, he may very well be in his element. He is no longer involved in the day-to-day operations of the parent company, but he is influential in shaping its investment strategy and future initiatives. While many entrepreneurs can find corporate culture restrictive and prefer the freedom of the start-up, for now, he seems to have the best of both worlds.
There is no doubt that LeoVegas is facing tough competition and a challenging time, as it navigates regulatory changes in the European markets. Maybe that is partly what is behind the relinquishing of power to Mattias Weber. LeoVegas has been developing sports betting platforms, as this vertical currently offers the most significant growth opportunity in the US. The acquisition of the Tipico US sportsbook in 2024 was under Hagman’s watch, and Gary Fritz, President of MGM Resorts International Interactive, stated that Hagman’s leadership had “laid the foundation for positioning both BetMGM and LeoVegas as global leaders in the industry.”
So all that work and dedication is still “only a foundation,” and LeoVegas is a division of the MGM Group. It must be tough for any entrepreneur to find themselves a small cog in a massive organisation, even if they are in positions of leadership. Mattias Wedar, the incoming CEO of LeoVegas Group, is currently the Deputy CEO and a professional executive rather than an entrepreneur. He held numerous senior managerial positions and was the CEO of the Stockholm-based igaming software company Gametek for two years before joining ‘team Leo’.
Hagman seems to have gotten out when he wanted to. There has been no public announcement about any specific venture, but there have been hints that he intends to return to his entrepreneurial roots. He recently spoke about his preference for companies in their early stages of development, saying,
“It was optimal for me up until we were a couple of hundred employees… I like to be able to walk the floors, talk to people, and get all the names.”
So look out for him pursuing new start-up opportunities or investing in early-stage ventures where he is close to the action. His track record in igaming would suggest that we might see him take on a founder or investor role somewhere. It would be a reasonably safe bet to think it would be in digital entertainment, fintech, or possibly a new igaming venture. AI is continually in the news, so maybe he will turn his expert gaze in that direction.
Also Read – UNLEASHING ORGANIZATIONAL POTENTIAL: THE ART OF PROCESS-DRIVEN LEADERSHIP
