LeoVegas Group strikes deal to acquire Tipico’s US sportsbook platform
Transaction includes taking parts of US-facing management and technology teams across Europe, Colombia, and the US as Tipico winds down operations Stateside
MGM Resorts International has confirmed that its subsidiary, LeoVegas Group, has agreed to acquire the sportsbook and online casino casino technology of Tipico US.
MGM said the acquisition means that LeoVegas Group will now be able to operate a “purpose-built proprietary sportsbook” across all markets and brands, barring those that are exclusive to the BetMGM joint venture with Entain.
In turn, Tipico will wind down its US operations before the acquisition’s close. Terms of the transaction include LeoVegas Group acquiring certain members of Tipico’s management, technology, and trading teams across the US, Colombia, and Europe.
The acquisition remains subject to customary closing conditions, while completion of the deal is expected to come in Q3 2024.
LeoVegas Group offers sports betting via nine brands in 10 jurisdictions, with its sportsbook powered by Kambi, including in the UK where the Stockholm-based operator offers BetMGM UK and BetUK.
Kambi’s shares plunged almost 9% to around SEK93 ($9) in early trading as investors reacted to the news that LeoVegas Group is taking its tech in-house.
The move for Tipico US’ tech comes after MGM Resorts International CEO Bill Hornbuckle had continued to drip feed to analysts the Las Vegas firm was looking to acquire its own sports betting tech.
BetMGM UK is currently powered by Kambi
Revealing what this deal means for the group, MGM Resorts International interactive president Gary Fritz said: “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.”
Meanwhile, Gustaf Hagman, LeoVegas Group CEO, heaped praise on the work done by Tipico’s team so far, explaining: “The team at Tipico US has successfully and impressively managed to develop an incredible tier-one sportsbook in just a few years.
“Now we want to continue to invest in this purpose-built sportsbook technology and use it to power our global ambitions.”
Hagman continued, shedding light on the company’s technology philosophy as he added: “At LeoVegas Group, we have always believed in controlling our own technical destiny by having the best tech teams working in-house.
“Last year, we acquired the leading game developer Push Gaming and now we are taking further steps and investing to control more parts of the igaming technology ecosystem.”
Mattias Wedar, LeoVegas Group’s chief product and technology officer, revealed that the MGM Resorts subsidiary had been keeping tabs on Tipico’s sportsbook for a significant period of time.
He claimed: “We have been scouting the globe and keeping a close eye on this amazing sportsbook for some time now and it has consistently impressed us.
“Players love this sportsbook, we love this sportsbook, our technology stack loves this sportsbook.
“This greenfield sportsbook – which features both simple and superior UX – is built for a multi-brand and multi-jurisdiction environment, and that is exactly what LeoVegas Group needs as we continue to expand internationally with our hero brands LeoVegas and BetMGM.”
News of the acquisition comes just days after Tipico confirmed CEO Joachim Baca will step up to become chair of the German operator, with the firm’s current COO, Axel Hefer, taking over Baca’s previous responsibilities.
Despite Tipico having proprietary technology and being live in four US states, Colorado, Iowa, Ohio and New Jersey (including online casino), the CVC Capital Partners-owned operator has struggled to make much of an impression in the US; its market share in Ohio, for example, is under 1%.
However, its casino product, also built on in-house tech, managed to rank in first place for analyst firm Eilers & Krejcik Gaming’s inaugural casino app testing report published in September 2023.