U.S.-based casino operator MGM Resorts International has announced that its subsidiary, LeoVegas Group, has agreed to acquire the product and technology platform constituting the U.S. sportsbook and online casino from Tipico Group Ltd.
As part of the transaction, LeoVegas will acquire certain of Tipico’s “U.S.-facing management, technology and trading teams across the U.S., Colombia and Europe,” said MGM Resorts in a Monday press release.
“Tipico will wind down its U.S. operations prior to the closing of the acquisition,” added the announcement.
The update said the acquisition would “allow LeoVegas to operate a purpose-built proprietary sportsbook across all international markets and brands,” with the exception of those exclusive to the BetMGM LLC, the latter a sports betting and iGaming operator across the U.S., jointly owned by MGM Resorts and Entain Plc.
MGM Resorts is the parent of Macau casino firm MGM China Holdings Ltd. The parent is also leading the development of a casino resort project in Osaka, Japan.
The acquisition of Tipico “solidifies the fourth pillar of MGM’s digital strategy, giving it a proprietary online sportsbook (OSB) and filling a key void in its current digital offering,” said CBRE Capital Advisors Inc in a Monday memo.
“Since acquiring LeoVegas in 2022, [MGM Resorts] management has been deliberate in their digital strategy, aiming for a self-sustaining business with content, live dealer, a scalable platform, and now a proprietary OSB tech stack,” wrote CBRE analysts John DeCree and Max Marsh.
MGM Resorts acquired LeoVegas in November 2022, along with the latter’s firm digital business team. In September last year, the casino firm bought Push Gaming, providing it with “leading games to over 200 operators globally,” according to CBRE.
The institution noted that MGM Resorts’ third pillar in its digital business was the live casino content, “secured through a partnership with Playtech last week”.
The live casino content will be streamed directly from the gaming floors of two of MGM Resorts’ Las Vegas strip properties,branded as “MGM Live”. It will be available for licensing in regulated markets worldwide, outside of the United States.
CBRE stated that the “control afforded by the Tipico OSB tech stack is crucial for scaling MGM/LeoVegas across multiple jurisdictions”.
“The acquisition of subscale OSB platforms in the U.S. has generally been unsuccessful so far,” noted the institution. “However, MGM is currently focused on international markets, and perhaps amassing the necessary utilities and experience to one day leverage in the U.S.,” it added.
