MGM Resorts International has made an exciting announcement that it is acquiring the US iGaming and sportsbook operations of Tipico Group. The financial terms of this transaction have not been disclosed, but it is under the entity of the LeoVegas Group, which MGM acquired for over $600 million in 2022.
This acquisition by LeoVegas is seen as a significant investment, following their acquisition of game developer Push Gaming in 2023. The goal is 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 customers with a clean, fast, and 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, 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. While its presence in Iowa and New Jersey is relatively small, the operator has seen more success in Colorado and Ohio, with revenue exceeding $10 million in Ohio.
The decision to acquire Tipico is more about bringing the operator’s technology needs in-house rather than solely focusing on market share. With Entain owning half of BetMGM, representing the technology side of the joint venture, this acquisition allows MGM Resorts to operate a proprietary sports betting platform.
The rumors surrounding Tipico and potential mergers and acquisitions have finally come to an end with this acquisition by MGM. Previously, there were talks of Fanatics considering a purchase of the gaming company, which did not happen. In April, rumors began circulating about Tipico’s US assets being up for sale, leading to MGM evaluating an offer. It is unclear if CVC will look to sell the remainder of Tipico, as there have been speculations about selling the gaming company in its entirety.
CVC has been the majority investor in Tipico for eight years, valuing the company at $3.75 billion. This acquisition marks a significant milestone in the strategic development of MGM Resorts’ global digital gaming business, enabling them to control their entire technology ecosystem and bring Tipico’s U.S. team on board to enhance their product and pricing capabilities.
