- The dysfunctional US sports betting market lost another entrant as Tipico called it quits.
- The company sold their US facing assets to BetMGM owned LeoVegas.
- There will be many more to come as the US regulatory structure squeezes out everyone but industry incumbents and financial benefactors.
The US sports betting market saw another European based entrant head for the exits this week as Tipico threw in the towel. The company sold off their US facing assets to BetMGM owned LeoVegas as they headed out the door. Here’s the skinny on the deal from a BetMGM press release:
MGM Resorts International (NYSE: MGM), through its subsidiary LeoVegas Group (“LeoVegas”), has announced an agreement to acquire the product and technology platform of the U.S. sportsbook and online casino from Tipico Group Ltd (“Tipico”). This acquisition marks LeoVegas’ second major investment following its acquisition of game developer Push Gaming in 2023.
The acquisition enables LeoVegas to operate a proprietary sportsbook across all international markets and brands, with the exception of those exclusive to the BetMGM JV. The focus is on delivering a clean, fast consumer experience with top-tier product, pricing, and functionality.
Gary Fritz, President of MGM Resorts International Interactive, highlighted the significance of this acquisition: “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. This allows us to operate a proprietary sports betting platform, giving us control of our entire technology ecosystem. 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.”
As part of the transaction, LeoVegas will acquire certain management, technology, and trading teams from Tipico across the U.S., Colombia, and Europe. Tipico will wind down its U.S. operations prior to the closing of the acquisition.
Gustaf Hagman, CEO of LeoVegas, emphasized the benefits of controlling their own sportsbook technology: “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. 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.”
The transaction is subject to customary closing conditions and is expected to be completed in the third quarter of 2024. This strategic acquisition will position MGM Resorts and LeoVegas to enhance their digital gaming operations and expand their footprint in the competitive sports betting market.
For more information about MGM Resorts International and LeoVegas, visit MGM Resorts and LeoVegas.
