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Reports Suggest Tipico Seeks Exit from the US Sports Betting Market

Written by: Michael Savio
Published May 1, 2024
5 min read

All indications are that Tipico Sportsbook’s time in the US is coming to a close.

Reports from around the industry suggest that Tipico is seeking to sell its US business. While there is no official announcement as of this writing, MGM Resorts is rumored to be the frontrunner in purchasing the Malta-based operator’s US business. While Tipico is only licensed to operate in four states, MGM is focused on acquiring its platform to support its LeoVegas Sportsbook.

Tipico Exists US Market

Over the last two years, Tipico has been rumored to be looking for an exit from the US sports betting market. Fanatics was in talks with the operator in 2022 as it looked to launch its platform. They were looking to acquire Tipico for both their technology and operating licenses but opted to acquire the larger PointsBet instead.

If the reports are accurate, Tipico would become the latest in a long line of sportsbooks to exit the US market. Though the platform was one of the first to enter the US in 2019, it is currently only licensed in Colorado, Iowa, New Jersey, and Ohio.

Overcrowded US Market Continues to Thin

Since it became legal in 2018, DraftKings and FanDuel have dominated the US sports betting market. Together, they own over 80% of the market share nationwide, while BetMGM, BetRivers, and Caesars have captured much of the rest. That has left little market share for other operators, leading them to seek a way out.

The race for many sportsbooks to sell their US Sportsbooks has also allowed two new major players to emerge in ESPN Bet and Fanatics. ESPN took over for Barstool Sportsbook, which allowed them to launch in 18 states within the first few months of going live. Fanatics is now available in 17 states thanks to their purchase of PointsBet’s US business.

While brand recognition has contributed to industry leaders' success, it hasn’t always been the case in the US sports betting market. Brands such as FOX, Barstool, Wynn Resorts, and Fubo have all failed to gain traction while their rivals have thrived.

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AUTHOR

Michael Savio

477 Articles

Michael is an avid sports fan and a veteran bettor from Milwaukee. He learned the trade from his grandfather in Las Vegas as a kid and has turned that into a successful career. He cheers for all Wisconsin pro teams along with his Alma Mater Arizona State. He specializes in baseball betting, but has experience in football, basketball, and hockey as well. When he isn’t pouring over stats, he’s spending time with his two young children.

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