MGM Eyes Acquisition of Tipico’s U.S Operations Amid Sale Rumors

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Rumor has it that the bustling digital streets of online sports betting are about to witness a high-stakes handover, with Germany’s sportsbook operator, Tipico, revisiting the possibility of selling its U.S operations. The whispers gathering in public forums intimate that MGM Resorts International could potentially seize the opportunity to fortify its position in the digital gambling landscape.

Holding a lion’s share, CVC Capital Partners, a private equity firm, has robust control over Tipico’s future. Certain sources in media corridors hint that the equity firm might explore selling off the gaming company altogether while pricing Tipico’s worth at a substantial $3.75 billion. A recently extracted report on Monday by Earnings + More, based on unnamed informants, affirms that the German company’s U.S wing is up for grabs, and MGM appears to be intrigued.

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Flaunting its prowess in online sports betting in only four American states—Colorado, Iowa, New Jersey, and Ohio—Tipico also dabbles in iGaming in New Jersey. It has earned itself commendations amongst numerous casino operators for its remarkable presence in the online gambling sector.

Despite its impressive reputation as one of the chief sportsbook operators in Europe, Tipico has struggled to establish significant footprints in the vehemently competitive U.S market. CVC has yet to comment on the rumors of selling Tipico while MGM maintains a cryptic silence about their interest in purchasing it. The connection between the private equity firm and Tipico extends for nearly a decade.

From MGM’s strategic perspective, acquiring Tipico could indeed be a smart move. Tipico’s American assets could easily merge with BetMGM, an iGaming and sportsbook entity half-owned by MGM. Exploring a step further and acquiring the entirety or parts of Tipico may present diverse investment opportunities for MGM since the company has shown an apparent interest in expanding more into Europe’s iGaming and sports betting scene.

In a big leap towards this ambition, MGM added LeoVegas to its portfolio in a 2022 deal that cost it a cool $604 million. LeoVegas still relies on Sweden-based Kambi’s technology. With the purchase of Tipico, MGM could bid adieu to Kambi.

In a recent development on Tuesday, MGM unveiled BetMGM in the Netherlands, following a successful rollout in the UK. The optimal performance in the UK market and the anticipations of introducing the golden Vegas experience to the Netherlands have been celebrated by LeoVegas CEO Gustaf Hagman as a decisive stride in their international expansion.

Speculations of Tipico being targeted for purchase are not unprecedented. June 2022 witnessed similar conjectures about privately held Fanatics expressing interest in acquiring the company. Although talk of a possible deal tapered off without culminating in a transaction.

Among the latest tidal waves of takeover speculation, MGM emerges as the only notable suitor for Tipico, bolstered by the appealing combination of Tipico’s relatively affordable price tag and alluring European presence. However, other potential contenders may yet step into the spotlight, drawn by the lure of the European footprint.