MGM Resorts announced on June 24 that its subsidiary, LeoVegas Group, has entered a purchase agreement to acquire Tipico Sportsbook and its online casino operations. MGM says Tipico will shutter its US business before the closing of the acquisition deal, which is expected to occur before the end of September.
With Tipico’s exit, sports bettors will have 18 Ohio online sportsbooks left to choose from.
Tipico Ohio begins exit, advises sportsbook customers to withdraw funds
Ohio Tipico customers began receiving information about the sportsbook’s closure shortly after the acquisition was announced.
In an email to customers, Tipico said it would no longer accept new deposits, wagers, or registrations as of June 26. All active Tipico promotions will be canceled on June 28.
Tipico encouraged customers to withdraw funds and cash out open bets. Users will have access to their account wallet “for the next few months.” After that period, Tipico will mail a refund check to customers with the remaining funds.
MGM acquired Tipico for betting platform tech
Reports surfaced in April that MGM was seeking to acquire Tipico to bring its proprietary US sports betting and online casino platforms in-house.
MGM Resorts International Interactive president Gary Fritz confirmed the company’s goal of having its own sports betting platform in a press release, saying:
“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. 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 said that Tipico’s platform will power its sports betting products in markets worldwide. That includes BetMGM and BetUK in the United Kingdom.
However, due to MGM’s joint venture with Entain, the deal does not mean that BetMGM Sportsbook will adopt the Tipico platform anytime soon. Speculation suggests that MGM could seek to end its Entain partnership at some point in the future, though. And in that case, they could switch to Tipico’s tech for US BetMGM products.
Tipico is partnered with MLS Cup champs, the Columbus Crew
Tipico was among the first licensed Ohio sportsbooks when sports betting launched on Jan. 1, 2023. At the time, Ohio was the third state in which Tipico Sportsbook had launched, following New Jersey and Colorado. The sportsbook entered the Iowa market later in January 2023.
Tipico attempted to ingrain itself into the community via Ohio-centric offers and sponsor partnerships.
Tipico’s market-access partner for its sports betting license is reigning MLS Cup champions the Columbus Crew. Tipico is the Crew’s sleeve sponsor, meaning the team’s players currently feature the sportsbook’s branding on their uniforms.
Tipico also partnered with AEG Presents, making it the exclusive sportsbook sponsor of multiple AEG-run music venues in Ohio. The sportsbook made its NASCAR sponsorship debut at an Ohio race last summer.
Tipico Sportsbook handle, revenue consistently middle-of-the-pack in Ohio
Despite the state-focused efforts, Tipico never quite made it to second-tier status in Ohio. Instead, the sportsbook typically found itself in the middle of the pack in terms of handle and revenue.
In its lifespan in the Buckeye State, Tipico recorded about $8.5 million in revenue. That puts the sportsbook well below second-tier contenders like Bet365, BetMGM and ESPN Bet. Still, it’s performed better than other brands like Bet Rivers and betJACK.
Tipico took $6.7 million in bets for $625,000 in April revenue, according to the most recent April 2024 Ohio sports betting report. Those numbers put Tipico at ninth out of the state’s 19 online sportsbooks in terms of handle and revenue. emblematic of Tipico’s overall performance in the state.
Tipico’s Crew partnership also affords the operator an active Ohio retail sports betting license. Though there is a Tipico Sportsbook Club at the Crew’s Lower.com Field, the team and sportsbook never announced bets were being accepted at the stadium. But Tipico reported Ohio retail sportsbook handle and revenue numbers for the first time in April. The numbers were minuscule, though, with $87 in handle and $23 in revenue.
