MGM Resorts’ LeoVegas to acquire Tipico US sportsbook and casino

The agreement covers both the product and technology platform that power Tipico’s online sports betting and casino in the US. Neither MGM nor LeoVegas disclosed the financial details of the deal.

MGM said the deal will allow LeoVegas to operate a purpose-built proprietary sportsbook across all international markets and brands, with the exception of those exclusive to the BetMGM joint venture with Entain.

The acquisition will also see LeoVegas acquire Tipico’s US-facing management, technology and trading teams across the US, Colombia and Europe.

In line with the agreement, Tipico will wind down its US operations prior to the deal closing. The operator is currently active in Colorado, Iowa, New Jersey and Ohio.

MGM expects the purchase to close during the third quarter, subject to customary closing conditions.

“Significant” milestone for MGM

MGM Interactive president Gary Fritz welcomed the deal as it will give the group control over more of its technology ecosystem.

“The acquisition marks a significant milestone in the strategic development of MGM Resorts’ global digital gaming business,” Fritz said. “It allows us to operate a proprietary sports betting platform.

“The deal 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 product and pricing capabilities, into our business,” Fritz said.

LeoVegas CEO Gustaf Hagman added: “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.”

LeoVegas business continues to grow

This acquisition marks the second major investment by LeoVegas since it was taken on by MGM in November 2022.

Last September, LeoVegas closed the purchase of game developer Push Gaming. At the time, it said the deal would expand its activities into slots content and strengthen its content production capabilities.

Fritz also said the purchase was consistent with MGM’s vision to expand its digital gaming presence internationally.

A partnership with Playtech expands that vision further. Last week’s deal sees MGM pair up with the supplier to launch MGM Live, streaming live dealer games from the Bellagio and MGM Grand in Las Vegas.

Acquisition follows new Tipico CEO announcement 

As for Tipico, confirmation of the deal comes just a week after Axel Hefer was appointed as its new group CEO.

Hefer takes on the role after a spell as chief operating officer. He succeeds Joachim Baca, who is becoming chairman of Tipico’s supervisory board after eight years as CEO.

“In recent years, Tipico has evolved from a startup to the definitive market and technology leader in sports betting in Germany,” Hefer said upon taking the role. “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,” he said.