MGM Resorts to acquire Tipico’s US sportsbook and casino platform

MGM Resorts International is gaining a proprietary sportsbook and online casino platform through an acquisition agreement with Tipico.

MGM Resorts has agreed a deal to acquire Tipico’s US sportsbook and iGaming product and technology platform for an undisclosed amount, with the acquisition expected to close in the third quarter of this year.

The acquisition will be made by MGM Resorts’ LeoVegas subsidiary, giving the company a purpose-built proprietary sportsbook for use across all international markets and brands, excluding those that are exclusive to the BetMGM joint venture with Entain.

As a part of the acquisition, Tipico will shut down its operations in the United States ahead of completion, with some of its U.S. facing management, technology and trading teams in the U.S., Colombia and Europe joining the LeoVegas team.

"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," said Gary Fritz, president of MGM Resorts International Interactive.

"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 with Tipico marks the second major acquisition for LeoVegas following last year's acquisition of games developer Push Gaming.

Gustaf Hagman, chief executive of LeoVegas, commented: "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 U.S. business into the LeoVegas Group very soon."

Shares in MGM Resorts International Inc. (NYSE:MGM) 0.72 per cent to close at $42.00 per share in New York Friday, prior to this morning’s announcement.