Tipico On the Cusp of Exiting U.S. Market

Zane Smith, driver of the #38 Tipico Underscoreg Ford, as we look at Tipico's potential exit from the U.S. market — Zane Smith, driver of the #38 Tipico Underscoreg Ford, drives on July 08, 2023. Photo by Meg Oliphant/Getty Images via AFP.

The rumored Tipico Underscoreg exit from the U.S. legal sports betting industry is now coming to an end. Customers who have frequented the sportsbook can now transition to one of our top sports betting sites.

A relatively unknown player in the American sports betting industry, Tipico sportsbook, which is based in Europe, began talks with potential buyers to sell its U.S. operations as early as 2022. By June 2022, Fanatics Underscoreg appeared interested in acquiring Tipico’s American operations, but ultimately changed course and purchased the more popular and easier to access PointsBet USA instead.

Tipico, owned by private equity firm CVC, has suggested the potential sale of the entire company, including its American assets. CVC executives estimate its value to be approximately €3.5 billion.

Attractive target?

Tipico operates in four U.S. states, all of which are ranked in the top 10 in the American market. The company has a strong presence in the New Jersey, Colorado, Iowa, and Ohio sports betting scenes. Despite high-profile partnerships with major North American sports entities like NASCAR, Tipico has yet to see significant impact from these collaborations.

Although Tipico has market access in some top-tier U.S. states, it has struggled to make a significant impact in the U.S. In March, Tipico only generated $292,000 in sportsbook revenues in New Jersey, out of the total $89.7 million. It appears that residents are more attracted to promotions offered by other sportsbooks in New Jersey.

During the first quarter of the 2024 fiscal year, Tipico Underscoreg USA reported $1.1 million in gross revenue nationally, which is below expectations given the NFL playoffs, Super Bowl, and March Madness events taking place during that time.

Who’s interested?

MGM Resorts is considering a potential partnership with Tipico Underscoreg, which could allow its iCasino brand, LeoVegas, to move away from using Kambi technology. By leveraging Tipico’s proprietary technology, MGM could enhance its online casino platform.

MGM Resorts aims to use its own technology suite to operate LeoVegas, and Tipico technology would enable them to do so.

Tipico’s online casino has found greater success in the American market compared to its sports betting offerings, making it an appealing product for potential buyers. This is particularly true as real money online casinos gain popularity in American society. Tipico’s online casino is highly rated in New Jersey, competing with top brands like BetMGM and DraftKings in the state.

Tipico Fair Play Pledge

In February, Tipico introduced the Tipico Fair Play Pledge, which enhances the platform’s offerings. This top-notch educational tool is aimed at safeguarding bettors and enhancing the overall betting experience.

The Tipico Fair Play Pledge has resulted in the online betting provider receiving prestigious recognition in the U.S. market. The program was honored with Internet Compliance Assessment Program accreditation in both New Jersey and Ohio. As a result, Tipico became the inaugural sportsbook in the United States to achieve top ratings for its efforts in consumer protection.

Written By:
Davis Isabela

Davis Isabela is the Editor-in-Chief of Underscoreg Review. He has been a writer, reporter and editor for more than 20 years, and his work has appeared in more than 200 publications across North America. His first book, “100 Greatest Canadian Sports Moments”, was a hardcover best-seller in Canada in 2008. He has written more than 50 sportsbook reviews and dozens of other sportsbook-related content articles. James has also been quoted as a sports betting expert in USA Today and Sports Illustrated.