MGM Resorts International Announces Agreement to Acquire Tipico's U.S. Sportsbook

Rhea-AI Summary

MGM Resorts International announced that its subsidiary, LeoVegas Group, has agreed to acquire Tipico's U.S. sportsbook and online casino platform. This acquisition will enable LeoVegas to operate a proprietary sportsbook, enhancing its global digital gaming business. The transaction includes the integration of Tipico's U.S. management, technology, and trading teams. This deal marks LeoVegas' second major investment, following its acquisition of Push Gaming in 2023. The transaction is expected to be completed in Q3 2024, subject to customary closing conditions.

Positive

• MGM Resorts' subsidiary, LeoVegas Group, will gain control over Tipico's U.S. sportsbook and online casino platform.
• The acquisition allows LeoVegas to operate a proprietary sportsbook, enhancing its international market reach.
• The integration of Tipico's experienced U.S. management, technology, and trading teams will strengthen LeoVegas' workforce and capabilities.
• This is LeoVegas' second major investment, following the acquisition of Push Gaming in 2023, indicating strategic growth.

Negative

• Tipico will wind down its U.S. operations prior to the closing of the acquisition, possibly affecting the workforce temporarily.
• The transaction is subject to customary closing conditions, introducing potential uncertainties until finalized.

LAS VEGAS, June 24, 2024 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") today announced that its subsidiary, LeoVegas Group ("LeoVegas"), has entered into an agreement to acquire the product and technology platform constituting the U.S sportsbook and online casino from Tipico Group Ltd ("Tipico").

This acquisition is the second major investment by LeoVegas, following the acquisition of game developer Push Gaming in 2023. The acquisition will allow LeoVegas to operate a purpose-built proprietary sportsbook across all international markets and brands, with the exception of those exclusive to the BetMGM JV, with a focus on a clean, fast consumer experience with top-class product, pricing and functionality.

Tipico will wind down its U.S. operations prior to the closing of the acquisition. 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.

"The acquisition of Tipico's award winning U.S. 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," said Gary Fritz, President, MGM Resorts International Interactive, "This acquisition gives us control of our entire technology ecosystem, and we are delighted to bring Tipico's U.S. team, with their track record of developing high quality product and pricing capabilities, into our business."

LeoVegas CEO Gustaf Hagman added: "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. I look forward to welcoming the talented teams from Tipico's U.S. business into the LeoVegas Group very soon."

The transaction is subject to customary closing conditions and is expected to be completed in the third quarter of 2024.

About MGM Resorts International

MGM Resorts International (NYSE: MGM) is an S&P 500® global gaming and entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 31 unique hotel and gaming destinations globally, including some of the most recognizable resort brands in the industry. The Company's 50/50 venture, BetMGM, LLC, offers sports betting and online gaming in North America through market-leading brands, including BetMGM and partypoker, and the Company's subsidiary, LV Lion Holding Limited, offers sports betting and online gaming through market-leading brands in several jurisdictions throughout Europe. The Company is currently pursuing targeted expansion in Asia through the integrated resort opportunity in Japan. Through its "Focused on What Matters: Embracing Humanity and Protecting the Planet" philosophy, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests, and in the communities where it operates. The global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®. For more information, please visit us at www.mgmresorts.com. Please also connect with us @MGMResortsIntl on Twitter as well as Facebook and Instagram.

About LeoVegas Group

LeoVegas Group is a leading international igaming company with a clear vision to create the world's greatest igaming experience. LeoVegas offers online casino, live casino, and sports betting via 9 brands in 10 jurisdictions. LeoVegas continues to grow rapidly, currently employing over 1,400 people in Europe, including at its headquarters in Stockholm and operations hub in Malta. As one of the most innovative companies in the industry, LeoVegas also invests and develops other igaming companies through its investment arm, LeoVentures. In 2022, LeoVegas became a subsidiary of the global entertainment company MGM Resorts International (NYSE: MGM). For more information, visit www.leovegasgroup.com.

Forward Looking Statements

Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and involve risks and/or uncertainties, including those described in the Company's public filings with the Securities and Exchange Commission. Forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "expects," "could," "may," "will," "should," "seeks," "likely," "intends," "plans," "pro forma," "projects," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. The Company has based forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, the Company's expectations regarding the closing of the transaction and any benefits expected to be received from the transaction. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include the effects of economic conditions and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, including the proposed integrated resort in Japan, risks relating to international development, operations, permits, licenses, financings, approvals and other contingencies described in the Company's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

MGM RESORTS CONTACTS:
News Media
BRIAN AHERN
Executive Director, Media Relations
media@mgmresorts.com

Investment Community
SARAH ROGERS
Senior Vice President of Corporate Finance 
(702) 730-3942 or srogers@mgmresorts.com

ANDREW CHAPMAN
Director, Investor Relations
achapman@mgmresorts.com

 

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SOURCE MGM Resorts International

FAQ

What did MGM Resorts International announce on June 24, 2024?

MGM Resorts International announced that its subsidiary, LeoVegas Group, has agreed to acquire Tipico's U.S. sportsbook and online casino platform.

What is the significance of LeoVegas' acquisition of Tipico's U.S. sportsbook for MGM?

The acquisition allows LeoVegas to operate a proprietary sportsbook, enhancing its global digital gaming business.

When is the transaction between MGM's LeoVegas and Tipico expected to be completed?

The transaction is expected to be completed in the third quarter of 2024, pending customary closing conditions.

How will the acquisition of Tipico's U.S. platform impact LeoVegas' workforce?

The acquisition includes the integration of Tipico's U.S. management, technology, and trading teams, strengthening LeoVegas' workforce.

What was LeoVegas' previous major investment before acquiring Tipico's U.S. sportsbook?

LeoVegas' previous major investment was the acquisition of game developer Push Gaming in 2023.