MGM Resorts is beefing up its US sports betting portfolio with the acquisition of Tipico US through its subsidiary LeoVegas. It’s a move that’s aimed at creating a standalone online gambling product that can thrust MGM Resorts into a stronger position in the red-hot US sports betting and online gambling market.
Though Tipico never had a very large share of the market (it only operates in New Jersey and Colorado) its technology platform is one that larger operators like MGM have coveted for some time. According to multiple reports, Tipico has been engaging with potential buyers since April, and MGM is the one who came out on top.
A quick reading of MGM Resorts’ press release announcing the acquisition reveals that the deal was pretty targeted and the company had an eye on picking up specific. That conclusion can be reached by the fact that MGM Resorts mentioned that, “LeoVegas will acquire certain of Tipico’s U.S. facing management, technology and trading teams across the U.S., Colombia and Europe.”
Speaking in that same press release, Gary Fritz, President, MGM Resorts International Interactive the significance of the Tipico acquisitions saying, “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, 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 U.S. team, with their track record of developing high quality product and pricing capabilities, into our business.”
The deal is expected to be completely wrapped up some time during Q3 2024.