MGM Resorts International has taken a significant step in its digital strategy by acquiring the U.S. product and technology platform from Tipico Group. This move positions MGM as the controlling shareholder of its BetMGM joint venture with Entain. The acquisition solidifies the fourth pillar of MGM’s digital strategy, filling a key void in its current digital offering.

The Tipico Acquisition

MGM’s acquisition of Tipico’s U.S.-facing management, tech, and trading teams provides a proprietary online sportsbook. The control afforded by Tipico’s online sports betting tech stack is crucial for scaling MGM/LeoVegas across multiple jurisdictions. Unlike the BetMGM joint venture, which lacks exclusivity, Tipico’s tech can be deployed internationally.

As part of the transaction, Tipico will shut down its U.S. operations, currently live in four states. Additionally, Tipico’s icasino platform and player account management (PAM) system enhance LeoVegas’s existing tech.

MGM’s Digital Pillars

1. Scalable Cloud-Based Technology: MGM achieved this in November 2022 with the LeoVegas acquisition, along with a strong digital business team.
2. Content: The acquisition of Push Gaming in September 2023 provided games to over 200 operators globally.
3. Live Casino Content: MGM secured this through a partnership with Playtech, offering live casino content branded as MGM Live. Initially available in international regulated markets, it could eventually expand to the U.S.

While DraftKings and FanDuel dominate the U.S. online sports betting and igaming landscape, MGM’s progress is noteworthy. By focusing on international markets and amassing necessary utilities and experience, MGM aims to leverage its digital strategy in the U.S.