MGM Expands with LeoVegas’ Tipico US Acquisition

June 25, 2024 – In a strategic move to bolster its digital gaming footprint, MGM Resorts International (NYSE: MGM) has announced that its subsidiary, LeoVegas Group, will acquire Tipico’s US online casino and sportsbook operations. This acquisition marks a pivotal step in MGM’s strategy to expand its proprietary technology and enhance its iGaming offerings.

The acquisition agreement encompasses Tipico’s product and technology platform for its US online casino and sports betting services. It also includes the integration of key management, technology, and trading teams from Tipico’s operations in the US, Colombia, and Europe into LeoVegas. The transaction is expected to conclude by the third quarter of this year.

 

Strategic Benefits

This acquisition allows LeoVegas to gain full control over the sportsbook technology, aligning with the company’s goal to deliver a superior iGaming experience globally. Gustaf Hagman, CEO of LeoVegas, emphasized the importance of this control, stating, “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.”

As part of the transition, Tipico will wind down its operations in New Jersey, where it runs an online casino, and cease its sportsbook activities in Colorado, Iowa, New Jersey, and Ohio.

 

Broader Implications for MGM and LeoVegas

Gary Fritz, President of MGM Resorts International Interactive, described the acquisition as a significant milestone for MGM's digital gaming business. “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,” Fritz commented. “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.”

This move comes on the heels of MGM Resorts’ recent partnership with Playtech, announced last week, to expand live casino content. The collaboration, aimed at enhancing MGM’s game content and production capabilities, includes streaming live casino games from MGM Grand and Bellagio in Las Vegas to international markets such as Mexico and the UK.

LeoVegas’ acquisition of Tipico’s US operations is its second major investment following the purchase of game developer Push Gaming in May 2023. This acquisition continues the momentum from MGM’s $600 million purchase of LeoVegas in 2022, which was part of a broader strategy to diversify and strengthen MGM’s online gaming presence both in the US and internationally.

In the words of Gary Fritz:

“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.”

 

Conclusion

The acquisition of Tipico’s US operations by LeoVegas signifies a robust enhancement of MGM Resorts’ digital gaming portfolio. By integrating Tipico’s technology and expertise, LeoVegas and MGM are poised to offer a more comprehensive and technologically advanced iGaming experience. As the integration progresses, the market will be closely watching how this strategic move will impact MGM’s competitive positioning in the global iGaming industry.