In a groundbreaking move set to reshape the digital gaming landscape, MGM Resorts’ subsidiary, LeoVegas, has announced its plans to acquire the renowned Tipico US sportsbook and casino operations. The deal encompasses both the product and technology platform underlying Tipico’s online sports betting and casino services in the United States, though the financial specifics have not been revealed by either MGM or LeoVegas.
This acquisition enables LeoVegas to manage a custom-built proprietary sportsbook across a diverse range of international markets and brands. However, it will notably exclude markets where BetMGM, MGM’s joint venture with Entain, operates exclusively. The purchase also includes the absorption of Tipico’s US-focused management, technology, and trading teams, who are distributed across the United States, Colombia, and Europe.
In alignment with the acquisition agreement, Tipico will be phasing out its US operations leading up to the deal’s closure. Currently, Tipico is active in key states including Colorado, Iowa, New Jersey, and Ohio. MGM anticipates finalizing the deal by the third quarter, contingent upon customary closing conditions.
Gary Fritz, the President of MGM Interactive, expressed his optimism regarding the acquisition, highlighting that it affords MGM greater control over its expansive technology ecosystem. “The acquisition marks a significant milestone in the strategic development of MGM Resorts’ global digital gaming business,” Fritz stated. “It allows us to operate a proprietary sports betting platform and gives us control of our entire technology ecosystem. We are delighted to bring Tipico’s US team, with their track record of developing high-quality products and pricing capabilities, into our business.”
LeoVegas CEO Gustaf Hagman also echoed these sentiments, emphasizing the strategic benefits of having 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 US business into the LeoVegas Group very soon,” Hagman stated.
Notably, this acquisition represents LeoVegas’ second significant investment since MGM brought the company under its wing in November 2022. Last September, LeoVegas completed the purchase of the game development company Push Gaming. At that time, the acquisition was revealed as a strategic move to diversify into slots content and bolster LeoVegas’ content production capabilities.
Fritz further indicated that this purchase aligns with MGM’s overarching vision to amplify its international digital gaming footprint. This ambition has been further bolstered by a recent partnership with gaming supplier Playtech. The collaboration involves the launch of MGM Live, a platform that streams live dealer games directly from the iconic Bellagio and MGM Grand in Las Vegas.
On the other side of the table, Tipico has made headlines by confirming this deal in the wake of appointing Axel Hefer as their new group CEO. Hefer, who previously served as chief operating officer, succeeds Joachim Baca. Baca, after eight years at the helm, will transition to the role of chairman of Tipico’s supervisory board.
Reflecting on his new role and the company’s journey, Axel Hefer commented, “In recent years, Tipico has evolved from a startup to the definitive market and technology leader in sports betting in Germany. I am eager to continue this success story with the Tipico team and the owners. Together we are committed to providing sports fans with the best and most secure betting experience, extending our market leadership, and achieving additional sustainable growth.”
The acquisition of Tipico’s US operations signifies a strategic integration of robust technological infrastructure and human expertise, promising extensive growth and innovation in the global digital gaming sector. As both MGM and LeoVegas stride forward with augmented capabilities, stakeholders and enthusiasts in the gaming industry remain keenly optimistic about the transformative potentials of this deal.
