MGM Resorts International recently announced that it will be acquiring the US iGaming and sportsbook operations of Tipico Group. The financial details of this transaction have not been disclosed, but it has been revealed that MGM’s LeoVegas Group unit will be responsible for acquiring the Tipico assets. MGM acquired LeoVegas in 2022 for over $600 million.
This acquisition marks the second major investment by LeoVegas, following the acquisition of game developer Push Gaming in 2023. The goal of this acquisition is to allow LeoVegas to operate a purpose-built proprietary sportsbook across all international markets and brands, except for those exclusive to the BetMGM JV. The focus will be on providing consumers with a clean, fast experience along with top-class product, pricing, and functionality.
As part of the deal, Tipico will be winding down its US operations, and some members of the domestic management, technology, and trading teams will be joining LeoVegas. The transaction is expected to be finalized in the third quarter.
Tipico, which is based in Germany and owned by private equity firm CVC Capital, currently offers sports wagering in only four states – Colorado, Iowa, New Jersey, and Ohio. The decision to acquire Tipico is more about enhancing MGM’s technology capabilities rather than increasing market share. Entain, which owns half of BetMGM, has been the technology side of the joint venture for some time.
The acquisition of Tipico’s US platform is a significant milestone for MGM Resorts’ global digital gaming business. This move allows MGM to operate its own sports betting platform and take control of its entire technology ecosystem. Gary Fritz, president of MGM Resorts International Interactive, expressed enthusiasm about bringing Tipico’s US team on board, highlighting their history of developing high-quality products and pricing capabilities.
Rumors surrounding Tipico’s future have been circulating for some time. Previous reports suggested that Fanatics was considering purchasing the gaming company, but that deal did not come to fruition. More recently, rumors indicated that Tipico’s US assets were up for sale, leading to MGM’s offer. It remains to be seen if CVC will look to sell the rest of Tipico, as speculation suggests that the entire gaming company could potentially be on the market.
CVC has been the majority investor in Tipico for eight years, and the private equity firm is said to value all of Tipico at $3.75 billion. This acquisition by MGM marks a significant move in the ever-evolving landscape of the US sports betting and iGaming industry.
