Tipico On the Cusp of Exiting U.S. Market

The long-rumored Tipico Sportsbook exit from the U.S. legal sports betting industry is finally concluding. Bettors who have used the sportsbook can now pivot to one of our best sports betting sites.

A middling name in the American sports betting scene, European-based Tipico sportsbook was in discussions with providers to sell its U.S. operations as far back as 2022. In June 2022, Fanatics Sportsbook looked as though it was in the market for Tipico's American operations before it pivoted and acquired the much more successful and accessible PointsBet USA.

Tipico, owned by private equity firm CVC, has hinted at the possibility of selling the entire company, not just its American assets. CVC brass believes it's worth around €3.5 billion.

Attractive target?

Tipico has a presence in four U.S. states, all of which are considered in the top 10 in the American market. It has access to bettors in the New Jersey sports betting, Colorado sports betting, and more recently, Iowa sports betting and Ohio sports betting scenes. It has also made high-profile moves to partner with such major North American sports entities as NASCAR with little effect thus far. 

Despite market access in some top-tier U.S. states, Tipico has had trouble gaining much traction in the U.S. In March alone, Tipico Sportsbook New Jersey accounted for just $292,000 of the overall $89.7 million in state sportsbook revenues. Residents seem to be drawn in by other New Jersey sportsbook promos.

In the first quarter of the 2024 fiscal year, during the NFL playoffs, Super Bowl, and March Madness, Tipico Sportsbook USA reported $1.1 million in gross revenue nationally. Those aren’t great numbers.

Who’s interested?

MGM Resorts has surfaced as a possible suitor for Tipico Sportsbook. This would allow its iCasino brand, LeoVegas, to forego Kambi technology, which it is currently being forced to use. Tipico’s proprietary technology could be utilized for MGM’s online casino platform. 

MGM Resorts would like to employ its own technology suite to run LeoVegas, and Tipico technology would allow it to do just that.

Tipico's online casino has succeeded more in the American market than its sports betting offerings, making the product attractive to prospective buyers, especially as real money online casinos become more relevant in American society. Tipico's online casino is a top-rated NJ online casino, on par with BetMGM and DraftKings in the Garden State.

Tipico Fair Play Pledge

The platform's Tipico Fair Play Pledge, launched in February, adds to the Tipico draw. It is a top-tier education product designed to protect bettors and provide a safer, better overall wagering experience.

Tipico Fair Play Pledge has led to the online betting provider gaining rare accolades in the U.S. market. The program was awarded Internet Compliance Assessment Program accreditation in New Jersey and Ohio. Tipico, in turn, became the first sportsbook on American soil to gain the highest marks for its consumer protection initiatives.