MGM Subsidiary LeoVegas Acquiring US Sportsbooks, Online Casinos from Tipico

MGM Resorts International announced Monday that its subsidiary, LeoVegas Group, had reached an agreement to acquire the Tipico casino and sportsbook platforms in the United States.

As a result of the purchase, Tipico will conclude its US operations prior to the completion of the acquisition. 

LeoVegas Planning to Create Proprietary Sportsbook

LeoVegas has become an increasingly significant subsidiary for MGM. Last year, LeoVegas acquired developer Push Gaming. The purchase of Tipico will give the company the assets it needs to create a proprietary sportsbook that will supplement MGM’s own offering, BetMGM, in markets where BetMGM doesn’t have the exclusive rights to offer a sportsbook. 

“The acquisition of Tipico’s award winning U.S. platform marks a significant milestone in the strategic milestone in the strategic development of MGM Resorts’ global digital gaming business, allowing us to operate a proprietary sports betting platform,” MGM Resorts International Interactive president Gary Fritz said in a statement. 

As a part of the acquisition, LeoVegas will also take on some members of Tipico’s management, technology, and trading teams from the United States, Colombia, and Europe. MGM says it expects the transaction to be completed in the third quarter of 2024.

MGM Resorts acquired LeoVegas in 2022. Founded in 2011, LeoVegas is a Swedish company that focuses on mobile online casino and sports betting services. The company is headquartered in Stockholm. 

“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 Gustaf Hagman said in a statement. “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.”

MGM Remains Among Top US Brands Despite Setbacks

Tipico currently operates sportsbooks in the states of Colorado, Iowa, Ohio, and New Jersey. In a statement from Tipico, the company's US CEO Adrian Vella welcomed the acquisition.

“After an exciting journey of constant development, progress and unwavering belief in creating an excellent product offering, today marks the start of a new interesting chapter,” Vella said. “Our rise from a start-up to an award-winning platform makes me very proud and I want to thank all my team, who made this story possible.”

MGM Resorts is among a handful of brands that dominate the growing US gaming and online gambling markets. However, not everything has gone swimmingly for MGM in recent years, particularly when it comes to their land-based operations.

MGM was one of the primary targets of a series of cyber attacks last year, with the company putting the price tag on the disruptions to its network at $100 million. Reports have suggested that MGM might also be looking to divest from some of its American properties, with a Bloomberg report earlier this year suggesting that it may sell MGM Springfield in Massachusetts and MGM Northfield Park in Ohio.

(Image: Liam Asman/Alamy Live News)