MGM announces acquisition of Tipico Group’s US sportsbook operations

MGM announces acquisition of Tipico Group’s US sportsbook operations

Pushing ahead with its ambitious plans to expand its footprints in digital gaming space, NYSE-listed casino operator MGM Resorts International has announced the acquisition of the U.S. iGaming & sportsbook operations of Tipico Group.

The acquisition of Tipico’s American iGaming & sportsbook operations marks a noteworthy advancement in MGM’s mission to enhance its digital gaming capabilities in the international market. It also underscores the Las Vegas-based company’s commitment to adopt advance technology to deliver unmatched gaming experience to customers in the highly-competitive sports wagering landscape.

None of the two sides revealed the financial terms of deal. MGM just said that the Tipico assents in question were acquired by its LeoVegas Group division, which was acquired by the Las Vegas-headquartered casino giant in 2022 in a deal worth more than $600 million.
This is the second major investment by LeoVegas in the recent past. Just last year, it had acquired a gaming content developer, called Push Gaming.

Commenting on the new acquisition, MGM said, “This will allow LeoVegas to operate a purpose-built proprietary sportsbook across all international markets and brands, with the exception of those exclusive to the BetMGM JV, with a focus on a clean, fast consumer experience with top-class product, pricing and functionality.”

Under the terms and conditions of the newly-signed deal, Tipico will close its American its U.S. operations. Some members of its local management, technology as well as trading teams will join LeoVegas. The transaction will likely close by the end of third quarter of this year.

Tipico, which is headquartered in Germany, is owned by private equity giant CVC Capital. In the U.S., it offers sports betting in four states, viz. Colorado, Iowa, Ohio and New Jersey. It is worth-noting here that Tipico’s share in the states of Iowa and New Jersey has been quite small. In some years, it was just to the tune of a few thousand dollars. In Colorado and Ohio, the company was comparatively more successful as its revenue only exceeded $10 million in Ohio.

The acquisition of Tipico’s American iGaming & sportsbook operations by MGM is expected to go a long way to transform and enhance the company’s position in the digital gaming landscape. The casino giant stands to benefit from Tipico’s technological prowess as well as experienced team. This deal also aligns with the company’s vision of providing top-tier experience to gaming enthusiasts.

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