Tipico reportedly close to selling US sportsbook

Tipico reportedly close to selling US sportsbook platform
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Sports betting and online casino provider Tipico is about to sell its proprietary U.S.-facing sports betting platform, according to a report in the Earnings+More newsletter.

The Tipico Sportsbook platform is a standalone product in the U.S. that is separate from the Malta-based company’s European operations.

The Earnings+More report claims that sources have suggested MGM Resorts is the likely buyer. Bringing Tipico’s proprietary sports betting platform on board would allow MGM to bring its LeoVegas sportsbook in-house instead of using Kambi‘s platform.

This isn’t the first time that reports have touted a sale of Tipico’s sportsbook, although two years ago it was a different buyer rumored. In June 2022, sports merchandise company Fanatics was said to be in discussions to acquire the sports betting operations.

Now, a sale is thought to be imminent, according to Earnings+More. SBC Americas reached out to Tipico for comment.

Tipico is owned by private equity firm CVC. The newsletter notes that whispers have suggested that the entire Tipico company could be sold and that CVC values the business at over €3.5 billion.

Earnings+More is published by +MoreMedia. SBC Events and +MoreMedia are uniting to host the Earnings+More: Capital Markets Forum at the New York Stock Exchange on May 6 ahead of the SBC Summit North America 2024 in New Jersey from May 7-9.

Tipico Sportsbook posts mixed U.S. performance

At the time of the Fanatics acquisition report, Tipico only had a U.S. market presence in New Jersey and Colorado. It has since spread to Iowa and Ohio and has partners including NASCAR in the latter of those states.

However, despite its growth, Tipico is one of many European operators that has found it tough to create a deep footprint in the States.

Tipico Sportsbook posted strong results throughout the NFL playoffs, recording its highest handle for the season during the Divisional Round and retaining strong engagement for Super Bowl LVIII. But its online sports betting numbers remain comparatively modest. March data for New Jersey showed that Tipico’s U.S. online sports betting operations in the state generated $292,000 in gross win in March and $1.1 million in Q1.

Amid its ongoing U.S. sports betting operations, the company launched what it calls the Tipico Fair Play Pledge in February, an initiative aimed at educating, rewarding and protecting bettors by fostering a safe betting experience while helping users maximize value.

Following that launch, it also earned Internet Compliance Assessment Program (iCAP) accreditation in New Jersey and Ohio last month, becoming the first sportsbook in the U.S. to receive the accreditation for best practices in consumer protection. The iCAP is administered by the National Council on Problem Gambling.

More headway made in online casino

The company has enjoyed stronger results in online casino, generating $1.3 million in gross gaming revenue in March for a Q1 total of $3.5 million. Tipico launched its new Tipico Casino technology platform in New Jersey last October. It first went live with online casino in November 2021 and as of late last year had 16 game studios on board. Its online casino partners in New Jersey include Pariplay and Wazdan.

A 2023 study by Eilers & Krejcik Gaming found that Tipico is one of the top-rated iGaming platforms in New Jersey along with BetMGM and DraftKings.