MGM Resorts International Announces Strategic Acquisition
MGM Resorts International (NYSE: MGM) has announced that its subsidiary, LeoVegas Group, has reached an agreement to acquire Tipico’s US online casino and sportsbook operations. This strategic move includes the acquisition of the product and technology platform that supports Tipico’s online casino and sports betting activities in the United States.
Key Strategic Move
Gustaf Hagman, CEO of LeoVegas, emphasized the significance of this acquisition in a recent MGM Resorts International press release:
“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.”
Operational Adjustments
As part of the agreement, Tipico will cease its online casino operations in New Jersey, as well as its sportsbook activities in New Jersey, Colorado, Iowa, and Ohio.
Key Highlights of the Acquisition
- Strategic Team Integration: LeoVegas will acquire certain US-facing management, technology, and trading teams from Tipico across the US, Colombia, and Europe.
- Previous Acquisitions: This acquisition follows LeoVegas’s acquisition of game developer Push Gaming in May 2023.
- Collaborations: Last week, MGM Resorts partnered with Playtech to expand its game content and strengthen production capabilities.
- Historical Context: MGM completed its purchase of LeoVegas in 2022.
Growth and Development
MGM’s press release outlines that the acquisition will enable LeoVegas to operate a “purpose-built proprietary sportsbook” across all international markets and brands, except those exclusive to the BetMGM joint venture with Entain (LSE: ENT). Tipico will wind down its US operations before the acquisition’s closing, expected in the third quarter.
Gary Fritz, President of MGM Resorts International Interactive, remarked on the acquisition:
“The acquisition of Tipico’s award-winning US 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. This acquisition gives us control of our entire technology ecosystem, and we are delighted to bring Tipico’s US team, with their track record of developing high-quality product and pricing capabilities, into our business.”
Partnership with Playtech
Recently, MGM Resorts announced a partnership with Playtech to offer live casino content to online casino operators in regulated markets outside the US. The live casino content, MGM Live, will stream from MGM Grand and Bellagio Resort & Casino in Las Vegas. Marc Jacobson, Corporate Media Relations Senior Manager at MGM Resorts, noted that MGM Live content will initially be available for licensing in Mexico and the UK, with plans for additional regulated markets to follow.
LeoVegas and Push Gaming
In 2023, LeoVegas acquired Push Gaming Holding Limited, marking its first significant investment since joining MGM Resorts in 2022. This acquisition aligns with MGM’s vision to expand its digital gaming presence internationally and enhance its capabilities and product offerings over the next several years.
In summary, the acquisition of Tipico by LeoVegas signifies another strategic milestone for MGM Resorts, further solidifying its position in the global digital gaming market.
