A little looseness is normal. The left side is a short shaft, only about 5" or so, there is a single needle bearing just inside the seal, so there is not much to prevent the shaft from rocking slightly when not under load.
Pretty common for the seal to leak a little on those. Might want to just clean it up, check the oil level. The oil level plug is right there in front the axle that is leaking. There is also a vent hose connected to a barb fitting above the axle. Be sure it is clear and the hose intact. If it is clogged the gearcase can pressurize and cause the seal to leak worse.
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