Tipico Mulling Sale of US Sportsbook, MGM Rumored Suitor

German sportsbook operator Tipico is reportedly evaluating a sale of its US operations and rumors are circulating that MGM Resorts International (NYSE: MGM) could be a suitor.

Tipico is majority owned by CVC Capital Partners and some media reports suggest the private equity firm could consider a sale of the gaming company in its entirety. It is believed CVC values Tipico at $3.75 billion. Citing unidentified sources with knowledge of the matter, Earnings + More reported Monday that Tipico’s US operations could be on the auction block, and that MGM could be kicking those tires.

While Tipico is one of the largest sportsbook operators in Europe, it’s struggled to command noteworthy market share in the hyper-competitive US market. CVC hasn’t publicly confirmed that it’s shopping the gaming company nor has MGM acknowledged interest in Tipico. The private equity firm has been the majority investor in Tipico for eight years.

Tipico Could Be Sensible Acquisition for MGM

While Tipico has some US assets that could be folded into BetMGM — the iGaming and sportsbook entity half-owned by MGM — it’s possible the casino giant could see other reasons to acquire part or all of the German company.

It’s not yet clear if that’s enough to compel MGM to buy Tipico outright, but the Aria operator wants to expand in Europe. On Tuesday, MGM announced it rolled out BetMGM in the Netherlands, which followed a launch in the UK.

“Our launch in the UK was tremendously successful, and we eagerly anticipate bringing the golden Vegas experience to the Netherlands. This launch in the Dutch market is an important step in our international expansion, but we have much more in store,” said LeoVegas CEO Gustaf Hagman in a statement.

Not First Time Tipico Has Been Rumored Target

This isn’t the first time Tipico has been the subject of mergers and acquisitions speculation. In June 2022, reports surfaced that privately held Fanatics was considering a purchase of the gaming company.

Those reports surfaced at a time when Fanatics was frequently mentioned as a potential acquirer, but the company didn’t commence a transaction with Tipico.

As for the new takeover speculation, potential suitors for Tipico haven’t been mentioned beyond MGM, but it’s possible others will emerge due to the prospective target’s affordable price tag and its attractive European footprint.