MGM Resorts will purchase the infrastructure of Tipico Sportsbook in the United States and repurpose it for subsidiary LeoVegas’ international operation.
According to a release, Tipico will “wind down” before the acquisition is complete, presumably by the end of the third quarter of 2024. LeoVegas will also take on some of Tipico’s US-facing management, technology, and sports betting teams.
The purchase marks MGM’s second major investment in LeoVegas in the past year. In 2023, the company acquired game developer Push Gaming. The purpose of the latest move, according to the release is to “allow LeoVegas to operate a purpose-built proprietary sportsbook across all international markets and brands” excluding those specifically controlled by BetMGM’s joint venture with Entain.
“The acquisition of Tipico’s award-winning U.S. platform marks a significant milestone in the strategic development of MGM Resorts’ global digital gaming business, allowing us to operate a proprietary sports betting platform,” Gary Fritz, the president of MGM Resorts International Interactive said in the release. “This acquisition gives us control of our entire technology ecosystem, and we are delighted to bring Tipico’s U.S. team, with their track record of developing high-quality product and pricing capabilities, into our business.”
Industry observers believe the deal could also augment BetMGM’s domestic sports betting technology. LeoVegas currently uses a Kambi platform.
Assessing the deal
Brendan Bussmann, managing partner of B Global and a gambling industry analysts to Gaming Today:
“While Tipico was not a major player or one that was top of mind for most of the larger sports books conversation, this is more about a long-term play for MGM Resorts than it is about acquiring market share today.“MGM Resorts has a long-term strategy to not only control its tech stack but also to implement these acquisitions as it continues to expand to other markets, controlling their own destiny while delivering to their customers the best experience possible.”
LeoVegas Grows, Tipico Goes in Latest M&A
LeoVegas currently offers online casino, live casino, and sports betting through nine brands in 10 jurisdictions, predominantly in Europe. It withdrew an application to offer online casino in New Jersey after MGM purchased it in 2022 as part of a globalization move.
“By controlling our own sportsbook technology, we ensure that we will deliver the world’s greatest iGaming experience to customers across all our markets and brands,” LeoVegas CEO Gustaf Hagman said in the release. “Powering our strong brands with a competitive and innovative sports product will enable us to grow and strengthen our sportsbook offering in both new and existing markets. I look forward to welcoming the talented teams from Tipico’s U.S. business into the LeoVegas Group very soon.”
Last week, MGM announced a partnership with Playtech to stream live dealer games from the Bellagio and MGM Grand Las Vegas casinos branded as MGM Live.
Tipico Sportsbook, which has a strong European presence, debuted in New Jersey and expanded to Colorado, Ohio and Iowa. It will become the latest in the lengthy US mobile sportsbook timeline to vanish.
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