On the surface, the MGM Resorts International acquisition of sports-betting and iGaming group, Tipico, seemed like a minor movement amid the operations of a gaming giant. But the reality is so much more. No purchase price was given.
Think of it as the fourth tower—or pillar—of MGM’s overall digital approach, a proprietary online sportsbook, one with its own identity not sullied by a partner. MGM Resorts only owns half of BetMGM, the other half owned by British firm, Entain. The U.K. arm provided the technology, MGM brought the brand.
The four-pillar strategy has come together in less than two years. The first involved technology that resulted in a scalable, cloud-based platform, which required the purchase of LeoVegas in November 2022, according to CDC Gaming Reports.
MGM’s procurement of Push Gaming in September 2023 provided content with a library of 200 games around the globe, thus becoming the second pillar. MGM secured the third element, bringing live casino content to the party, earlier in June through a partnership with Playtech.
The live content is streamed from Bellagio and MGM Grand in Las Vegas to markets in Mexico and the U.K. initially. The first games lean towards baccarat and roulette, with unique opportunities such as branded TV game shows and trivia.
Taken together, these give MGM Resorts total control over its technology ecosystem, said MGM Resorts International Interactive President Gary Fritz. As part of the deal, Tipico will shut down U.S. operations, where it does business in four states (Iowa, Colorado, New Jersey, and Ohio). It also operated an iGaming platform in New Jersey.
“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,” LeoVegas CEO Gustav Hagman. “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.”
The sale is expected to close in the third quarter of this year.
In a research note, Deutsche Bank analyst Carlo Santarelli called the announcement “more symbolic than needle moving. It shows a continued commitment to MGM’s international digital strategy … though the acquisition does provide incremental sportsbook platform technology, which should provide some cost savings and incremental opportunities to drive revenue.”
Meanwhile, what’s left of Tipico has a new CEO.
Axel Hefer takes over for Joachim Baca, who becomes Chairman of the Supervisory Board of the company.
Hefer first joined Tipico in November as chief operating officer.
His resume includes German tech firms, the travel search engine Trivago and online furniture retailer Home24.
Managing Partner of CVC and former Chairman of the Supervisory Board of Tipico Group, Daniel Pindur told Gambling Insider: “Over the past eight years, Joachim has done a remarkable job in advancing the development of Tipico and establishing it as an international sports betting and technology company.
“We are grateful for his outstanding contributions and are pleased that he will continue to play a key role as Chairman of the Supervisory Board. At the same time, we are delighted to have Axel as an experienced strategist and manager on board with Tipico. In his role as COO, Axel has proven he has the capabilities and vision to continue Tipico’s successful trajectory. We look forward to working together.”
Outgoing CEO and incoming Chairman of the Supervisory Board of Tipico Group Baca said: “Leading Tipico on its strong growth path, building structures and expanding the product portfolio has been a great privilege. We have thus set the stage for a prosperous future.”
