In a notable move this week, MGM Resorts International announced the acquisition of Tipico’s US tech stack and its trading teams in Colombia, Europe, and the United States. MGM aims to integrate these assets with LeoVegas’ international betting offerings, marking a significant milestone in advancing its digital strategy.
One advisor specializing in mergers and acquisitions noted the potential value of Tipico’s platform. “It’s a phenomenal piece of kit with no customers; [Tipico] has been trying to sell it for a year,” the advisor told iGaming Business. This acquisition could represent a strategic asset for MGM, particularly if the company decides to exit its joint venture with Entain, BetMGM, without losing critical technology.
The deal was made public on June 24, and industry analysts have started to weigh in on its implications. Aaron Lee, an equities research analyst at Macquarie US Equity Research, commented on how the acquisition could accelerate LeoVegas’ control over its tech stack. “The deal drastically shortens the timeline to LeoVegas gaining control over their tech stack compared to developing these capabilities in-house,” Lee said. He added that this would likely improve LeoVegas’ ability to make strong entries into emerging markets like Brazil.
Brazil is on the cusp of finalizing its online betting regulations, which are expected to be launched in early 2025. Bill Hornbuckle, CEO of MGM Resorts, has expressed keen interest in penetrating this and other Latin American markets. Speaking at JP Morgan’s Gaming, Lodging, Restaurant & Leisure Management Access Forum in March, Hornbuckle was optimistic about the scalability of LeoVegas in new markets. “We think we’re positioning ready to go after [markets like Brazil], and we’re excited about that,” he noted.
However, Macquarie’s Lee remains cautious about the possibility of MGM exiting the BetMGM JV anytime soon. “Both sides have consistently signaled their commitment to the JV, and that BetMGM will remain the vehicle for the US and Ontario,” he stated. Lee did highlight, though, that the Tipico deal could provide MGM with a complete tech platform for the BetMGM brand should they choose to dissolve the JV structure in the future.
MGM previously made an ill-received £8.1 billion bid for Entain in 2021, and Hornbuckle has since ruled out making another offer. When asked if MGM might consider branching out with an independent betting service in the US, a company spokesperson responded, “We are exclusive to BetMGM in the US.
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As part of this integration, LeoVegas will need to transition away from its current Kambi sportsbook, a move that initially rattled Kambi’s stock, causing a 9% drop. In an exclusive statement to iGaming Business, Kambi highlighted its multi-year partnership extension with LeoVegas, signed in June 2023. Yet, financial analysts from ABG Sundal Collier predict that LeoVegas will migrate to the Tipico platform following the expiration of its Kambi contract, which currently accounts for about 3% of Kambi’s revenues.
The JP Morgan forum also saw Hornbuckle discussing MGM’s active search for a sportsbook platform, stating that “sports betting and sports betting technology” were critical gaps in LeoVegas’ offerings. He described the business model as having four essential components, with the core casino technology and brand already being successful. Hornbuckle also hinted that they were close to securing an in-house live casino offering and a new betting platform for BetMGM’s international ambitions.
On June 20, MGM further expanded its digital footprint by partnering with Playtech to stream live casino games from two of its Las Vegas Strip properties. This innovative service aims to provide users with a genuine land-based casino experience, showcasing MGM’s commitment to leading in the digital gaming space.
Behind the scenes, MGM has been quietly assembling a top-tier digital team led by Gary Fritz, president of interactive. Fritz brings a wealth of experience from his time at IAC, where he worked on developing the online dating platform Match.com. James Brodie, an ex-Goldman Sachs director for European gaming, leisure, and real estate, supports Fritz as head of interactive, international.
The US has been a challenging market for Tipico, which failed to gain significant traction against giants like DraftKings and FanDuel. “Tipico is irrelevant to the US market,” an industry insider told iGB. The larger Tipico group is mostly owned by private equity firm CVC Capital Partners, once a stakeholder in William Hill.
The acquisition has also resulted in job uncertainties for Tipico US staff. Claire Alexander, VP of casino operations for the business, noted on LinkedIn that many talented casino staff members are now seeking new opportunities.
Tipico’s group CEO Joachim Baca expressed gratitude for the efforts of their US team, stating, “On behalf of the board of Tipico Group, I want to thank the teams in our US operations for the last years of dedication, innovation, and passion that made our US sportsbook and online casino platform the attractive venture it is today.”
MGM’s acquisition of Tipico marks a key step in Hornbuckle’s broader digital ambitions, positioning the company to make a substantial impact in the US and potentially lucrative international markets.
