A few years ago, in 2022, MGM Resorts International announced the acquisition of LeoVegas, a leading sportsbook brand with a growing presence. Last week, the company confirmed its plans to acquire Tipico’s US platform in order to strengthen LeoVegas’ presence in the country, paving the way for its further growth and expansion.
Although financial details regarding the acquisition of Tipico’s US sportsbook and iGaming operations were not disclosed, the strategic move captured the attention of industry observers and experts. Kim Noland, an expert analyst with Gimme Credit, who was recently quoted by Casino.org, acknowledged the importance of MGM’s takeover bid of Tipico’s US-facing assets.
In a note to investors, the analyst highlighted the strategic acquisition as a “key element” in MGM’s future digital expansion. Moreover, he pointed out: “MGM’s sports betting and digital offerings are beginning to provide a profitable addition to its luxury international casino resorts presence and could be a growth tailwind going forward.”
Upon announcing the merger with Tipico, MGM Resorts International Interactive’s president, Gary Fritz, explained that the acquisition grants the company “control of our entire technology ecosystem.” The exec added that it will be exciting to see Tipico’s US-facing team join forces with MGM’s seasoned experts. Fritz also praised the track record and extensive experience Tipico’s team brings to the company.
Gimme Credit’s analyst pointed to the broader impact of MGM’s acquisition of Tipico. He predicted that the strategic merger could help bolster LeoVegas in jurisdictions across the globe where BetMGM doesn’t hold exclusive market rights.
Noland spoke about the financial aspect of the strategic business combination. “Our free cash flow estimate (adjusted EBITDAR less cash rent, interest, taxes and capex) is based on management’s guidance of $850 million capex and totals near $1.5 billion,” he explained.
A Busy Period for MGM
The move toward Tipico’s US-facing assets comes after MGM announced a groundbreaking agreement with Playtech last month. At the time, the company confirmed it would stream content directly from two of its popular Las Vegas properties, MGM Grand and Bellagio Resort & Casino.
Noland acknowledged the potential positive impact of the collaboration with Playtech. He said that this strategic alliance can enable MGM to further grow its presence in international markets and potentially the US too.
Jerome García
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