Tipico will soon no longer be operational in New Jersey – or any jurisdiction in which the online casino and sportsbook is live.
The company announced on Monday that it has entered into an agreement to sell its product and technology platform to LeoVegas Group, which is part of the MGM Resorts International family, for an undisclosed amount.
As a result, according to a release, “Tipico will wind down” it national operations, including in the NJ online casino and NJ sports betting markets. Tipico informed customers that its sports betting service will no longer accept deposits, wagers, or registrations on June 26.
“For five years Tipico Group has heavily invested in the creation of its own proprietary sports betting and gaming platform for the US, working with some of the best talent to achieve excellence,” Joachim Baca, CEO of Tipico Group, said in a statement.
“On behalf of the board of Tipico Group I want to thank the teams in our US operations for the last years of dedication, innovation and passion, that made our US sportsbook and Online Casino platform the attractive venture it is today.”
Tipico acquisition ‘a significant milestone’ for MGM
As part of the deal, according to a release, LeoVegas will acquire technology, trading teams, and certain US management.
“After an exciting journey of constant development, progress and unwavering belief in creating an excellent product offering, today marks the start of a new interesting chapter,” Adrian Vella, CEO of Tipico US, said in a statement.
“Tipico has proven in one of the most competitive markets in the world that we can build proprietary technological solutions, whilst running sophisticated lean operations. Our rise from a start-up to an award-winning platform makes me very proud and I want to thank all my team, who made this story possible!”
Gary Fritz, president of MGM Resorts International Interactive, noted that the Tipico acquisition represents “a significant milestone” for MGM, “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.”
LeoVegas gains control of own sportsbook technology
Gustaf Hagman, CEO of LeoVegas, echoed Fritz’s sentiments, specifically as they relate to LeoVegas to leverage its own technology.
“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,” Hagman said in a press release.
“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 US business into the LeoVegas Group very soon.”
LeoVegas – which offers online casino gaming and sports betting in 10 jurisdictions – became a subsidiary of MGM in 2022 and just last year acquired game developer Push Gaming.
Pending regulatory and customary approvals, the Tipico transaction expects to conclude by the third quarter in 2024.
Tipico middled at best when looking at NJ online gambling revenue
In the Garden State, neither Tipico Sportsbook NJ nor Tipico Online Casino NJ gained much traction after entering the landscape nearly four years ago.
Many statements regarding the Tipico transaction surrounded sports betting specifically, an area in which Tipico has ranked 12th of 21 operators in terms of betting revenue since January.
As for NJ online casino revenue, Tipico sits 20th of 32 platforms.
