Tipico Considering Selling US Sportsbook Operation, Possible Buyer: MGM
German sportsbook operator Tipico is apparently thinking about selling its US operations, with whispers that MGM Resorts International (NYSE: MGM) might be a potential buyer.
Tipico is mainly owned by CVC Capital Partners, and some media coverage suggests CVC could be considering selling the entire gaming firm. It is thought CVC values Tipico at $3.75 billion. Citing nameless sources with knowledge of the situation, Earnings + More reported on Monday that Tipico's US operations could be for sale, and that MGM could be looking into them.
The German business offers online sports betting in just four states — Colorado, Iowa, New Jersey, and Ohio. Tipico also offers iGaming in New Jersey, where it's widely regarded as one of the highest-rated operators when it comes to online casinos.
Although Tipico is one of the major sportsbook operators in Europe, it's had a hard time making a sizable impact in the incredibly competitive US market. CVC hasn't officially acknowledged that it's shopping the gaming company, nor has MGM confirmed any interest in Tipico. The private equity company has been the major investor in Tipico for eight years.
Tipico Appeals to MGM as a Possible Acquisition Target
While Tipico has some US assets that could be incorporated into BetMGM — the iGaming and sportsbook entity that's half-owned by MGM — it's possible MGM could see other reasons to buy part or all of the German business.
MGM has shown interest in expanding further into Europe's iGaming and sports betting sectors. A significant move in that direction came in 2022 with a $604 million purchase of LeoVegas. As some sites point out, LeoVegas still uses Kambi's technology, but if MGM bought Tipico, it might end its partnership with Kambi.
It's not yet known if that's enough to convince MGM to buy Tipico outright, but the Vegas casino operator is set on expanding in Europe. On Tuesday, MGM announced it launched BetMGM in the Netherlands, following a launch in the UK.
"Our launch in the UK was a massive success, and we can't wait to bring the Vegas experience to the Netherlands," said LeoVegas CEO Gustaf Hagman in a statement. "This launch in the Dutch market is a critical step in our worldwide expansion, but we have a lot more planned."
Tipico Has Been the Subject of Mergers and Acquisitions Talk Before
This isn't the first time Tipico has been tossed around in mergers and acquisitions conversations. In June 2022, rumors emerged that privately held Fanatics was thinking about buying the gaming company.
The rumors surfaced at a time when Fanatics was frequently mentioned as a prospective buyer, but the company didn't end up making a deal with Tipico.
As for the new takeover speculation, there haven't been any other potential buyers mentioned besides MGM, but it's possible others will appear due to the prospective target's affordable price tag and its attractive European presence.
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Source: www.casino.org
