Share
MGM Resorts International (NYSE: MGM) announced that its subsidiary LeoVegas Group agreed to acquire Tipico’s US online casino and sportsbook.
The strategic agreement covers the product and technology platform that runs Tipico’s online casino and sports betting platform in the US.
LeoVegas CEO Gustaf Hagman said in a MGM Resorts International news release:
“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.”
Tipico will end its NJ online casino and its sportsbook there and in three other states.
Key takeaways
- LeoVegas will acquire certain of Tipico’s US-facing management, technology and trading teams across the US, Colombia, and Europe.
- The acquisition marks LeoVegas’s second major investment, following the acquisition of game developer Push Gaming in May 2023.
- Last week, MGM Resorts partnered with Playtech to expand its game content and strengthen production capabilities.
- MGM completed its purchase of LeoVegas in 2022.
Another milestone in MGM’s strategic growth development
MGM’s press release states that the agreement will enable LeoVegas to operate a “purpose-built proprietary sportsbook” across all international markets and brands. The exceptions are those exclusive to the BetMGM joint venture with Entain (LSE: ENT).
Tipico will wind down its US operations before the acquisition’s closing, which is planned for the third quarter.
As part of the transaction, LeoVegas will acquire certain of Tipico’s US-facing management, technology and trading teams in the US, Colombia and Europe. In the US, Tipico currently operates its online casino in New Jersey and its sportsbook in:
- Colorado
- Iowa
- New Jersey
- Ohio
Gary Fritz, president of MGM Resorts International Interactive, said:
“The acquisition of Tipico’s award-winning US 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.
This acquisition gives us control of our entire technology ecosystem, and we are delighted to bring Tipico’s US team, with their track record of developing high-quality product and pricing capabilities, into our business.”
Partnership with Playtech further expands MGM’s vision
Last week, MGM Resorts announced a partnership with Playtech to offer live casino content to online casino operators, including those in regulated markets outside the US.
The live casino content, MGM Live, will stream directly from two of MGM Resorts’ most iconic properties – MGM Grand and Bellagio Resort & Casino in Las Vegas.
Corporate Media Relations Sr. Mgr/Content Creator at MGM Resorts Marc Jacobson told PlayUSA that MGM Live content will initially be available for licensing in Mexico and the UK. The games’ launch in additional regulated markets will soon follow.
LeoVegas acquired Push Gaming in 2023
A little over a year ago, MGM Resorts International announced that LeoVegas had acquired the majority of game developer Push Gaming Holding Limited.
The agreement marked LeoVegas’ first significant investment since joining MGM Resorts in 2022. MGM added Push Gaming to strengthen LeoVegas’ plans for continued US online gaming growth through expansion.
As MGM emphasized in May 2023: “The acquisition of Push Gaming by LeoVegas is consistent with our vision to expand MGM Resorts’ digital gaming presence internationally to grow our capabilities and products over the next several years,” Garry Fritz said.
MGM’s acquisition of LeoVegas was completed in 2022 through the $600 million deal. That’s when MGM developed a plan to spread its US online gambling operation to other markets, including Europe while gaining new resources for its online gambling products within the US.
