MGM takes over Tipico bookmaker in the USA

Published: June 24, 2024, 02:19.

Last updated: June 24, 2024, 02:19.

MGM Resorts International (NYSE: MGM) announced that it is acquiring the U.S. iGaming and sports betting operations from Tipico Group.

Tipico fanatics — Tipico bookmaker advertising. MGM takes over the company’s branches in the USA. (Photo: Tipico)

The financial terms of the transaction were not disclosed. The Las Vegas casino giant announced that the entity purchasing the mentioned Tipico assets is its LeoVegas Group unit. MGM acquired LeoVegas in 2022 for more than $600 million.

This acquisition is LeoVegas’ second major investment following its acquisition of gaming developer Push Gaming in 2023. The acquisition will enable LeoVegas to operate a purpose-built, proprietary sportsbook across all international markets and brands, except those exclusive to the BetMGM JV, focusing on pure, fast consumer experiences thanks to top-class products, prices and functionalities,” reads a statement issued by MGM.

Under the terms of the agreement, Tipico will cease its U.S. operations and certain members of the target company’s domestic management, technology and commercial teams will join LeoVegas. The transaction is expected to close in the third quarter.

Tipico acquisition strengthens MGM technology

Germany-based Tipico, owned by private equity firm CVC Capital, offers sports betting in just four states – Colorado, Iowa, New Jersey and Ohio.

The operator’s share in Iowa and New Jersey is so small that in some years it amounts to hundreds of thousands of dollars. In Colorado and Ohio, Tipico was more successful, but in Ohio its revenues only exceeded $10 million.

This means that the decision to acquire Tipico is not so much about increasing BetMGM’s market share, but about meeting more of the operator’s technology needs in-house. Entain, the owner of half of BetMGM, has long represented the technology side of the joint venture.

“The acquisition of the award-winning US platform Tipico represents a significant milestone in the strategic development of MGM Resorts’ global digital gaming business, enabling us to operate our own sports betting platform,” said Gary Fritz, president of MGM Resorts International Interactive, “This acquisition gives us control over our entire ecosystem technology and we are delighted to add Tipico’s US team with experience in developing high-quality products and pricing capabilities to our business.”

The long-standing rumors about Tipico are coming to an end

Tipico has long been the subject of merger and acquisition speculation. In June 2022, reports emerged that privately held Fanatics was considering purchasing the gaming company. This agreement did not come to fruition.

In April, rumors emerged that Tipico’s US assets were for sale and MGM was evaluating the offer. Time will tell whether CVC will want to sell the rest of Tipico, as earlier this year there was speculation that it was considering selling the entire gaming company.

CVC has been the majority investor in Tipico for eight years. There are rumors that a private equity firm has valued the entire Tipico at $3.75 billion.