MGM Resorts International has announced that its subsidiary, LeoVegas Group, will acquire the assets of Tipico US, leading to Tipico’s withdrawal from the New Jersey market and other states where it operates. This significant move marks a strategic shift in the competitive landscape of the online casino and sports betting industry.
For the past five years, Tipico Group has invested heavily in developing its proprietary sports betting and gaming platform tailored for the U.S. market. This platform, built with the expertise of top industry talent, has been a cornerstone of Tipico’s U.S. operations. Joachim Baca, CEO of Tipico Group, expressed his gratitude to the U.S. teams for their dedication, innovation, and passion, which have turned their sportsbook and online casino platform into a competitive venture.
As part of the acquisition, LeoVegas will inherit Tipico U.S.’s management, technology, and trading teams across the U.S., Colombia, and Europe. This strategic move not only involves the transfer of physical assets but also the valuable human resources that have contributed to Tipico’s success in the U.S. market.
Adrian Vella, CEO of Tipico US, reflected on the company’s journey, highlighting the continuous development and unwavering belief in their product. He noted that Tipico’s growth from a start-up to an award-winning platform in a highly competitive market is a testament to their innovative technological solutions and lean operations. Vella extended his thanks to the team whose efforts have been pivotal in making this success possible.
Gary Fritz, President of MGM Resorts International Interactive, described the acquisition as a significant milestone in MGM’s strategy to enhance its global digital gaming business. He emphasized that this move will enable them to operate a proprietary sports betting platform, thereby strengthening their market position.
Gustaf Hagman, CEO of LeoVegas, expressed enthusiasm about integrating Tipico’s U.S. business into the LeoVegas Group. He highlighted the benefits of controlling their sportsbook technology to deliver exceptional iGaming experiences across all markets and brands. Hagman looks forward to the innovative potential this acquisition brings to their sports betting offerings.
LeoVegas, which became an MGM subsidiary in 2022, has expanded its footprint in the online casino and sports betting sector across ten states. In 2023, LeoVegas further solidified its market position by acquiring Push Gaming.
In a recent performance review, Tipico Online Casino NJ was ranked 20th out of 32 online casinos in New Jersey, with a revenue of $1,280,961 as of May 2024. Despite this, the strategic decision to sell its U.S. assets aligns with Tipico’s broader corporate goals.
According to the press release, the completion of this transaction is subject to customary closing conditions. Once these conditions are met, the deal is expected to be finalized during the third quarter of 2024. This acquisition will undoubtedly have far-reaching impacts on the dynamics of the online gaming industry, providing LeoVegas and MGM Resorts with enhanced capabilities to compete in the U.S. market.
