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MGM Resorts International (NYSE:MGM) is being sized up after the company’s LeoVegas Group subsidiary signed a deal to acquire the product and technology platform constituting the U.S. sportsbook and online casino of Tipico Group for an undisclosed sum. Notably, the partnership is expected to offer live casino content, branded as MGM Live, streaming from the Bellagio and MGM Grand in Las Vegas, initially in international regulated markets like the UK and Mexico. Expansion to the U.S. could be an option for the future. Initial game launches are expected to be baccarat and roulette but could eventually include unique experiences like celebrity-hosted trivia and branded TV game shows.
“The acquisition of Tipico’s US 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,” noted MGM Resorts International Interactive President Gary Fritz.
CBRE Equity Research analyst John DeCree said the acquisition solidifies the fourth pillar of MGM’s (MGM) digital strategy by giving it a proprietary online sportsbook and filling a key void in its current digital offering.
“The control afforded by the Tipico OSB tech stack is crucial for scaling MGM/LeoVegas across multiple jurisdictions,” he highlighted. Notably, the Tipico tech can be deployed internationally where the BetMGM joint venture doesn’t have exclusivity. DeCree pointed out that Brazil could be the next milestone. Licensing is already underway in Brazil, with regulated online betting and iCasino expected to go live in Q4 of this year. DeCree said a local partner will likely be necessary to compete in Brazil, but he also thinks that given the regulatory rollout disruption, there could be an opportunity for a new entrant like BetMGM to gain market share in the exciting growth market.
Shares of MGM Resorts International (MGM) are up 8.2% over the last week.
