Tipico, which some thought might pursue a sportsbook license in North Carolina, may be looking to get out of the sports betting business altogether in the US.
According to a report in the Earnings+More newsletter, Tipico is looking for a buyer to purchase its US sports betting platform. It’s a different platform than the one the company uses in Europe.
While Tipico has found success with its online casino offerings, it’s sportsbook has struggled in the few US markets where it’s available.
Tipico Looked To Strengthen Ties With NASCAR
North Carolina sports betting launched on March 11. Tipico, which looked like a possible partner for NASCAR in the Tar Heel State, surprisingly did not seek a sports betting license. The company recently signed a deal with NASSCAR to sponsor an upcoming race in Ohio.
Matthew Stallknecht, senior business development executive at Tipico, told NCSharp last year the company saw a future in the sports betting world with NASCAR.
“This is a great opportunity for smaller sportsbooks like Tipico because if we can grab market share in one of these more niche verticals, that is a huge differentiation opportunity for us. There is so much activity and action happening every lap of a NASCAR race, from pit stops, to passing in different parts of the field, stage racing, drivers gunning to cut fastest laps.
“These are all props that could be and should be offered live once the tech catches up to allow books to offer these sorts of lap-by-lap, event-based propositions more consistently. This is a betting cohort that is growing quickly here in the States. This cohort has also been historically neglected in a lot of ways by larger sportsbooks.”
Tipico Has Not Found Success In US Sports Betting Industry
Tipico is not unique in its struggles to crack the US sports betting industry. Small operators are finding it difficult to carve out a niche in markets dominated by a few major players, mainly FanDuel and DraftKings.
Tipico launched its US online sportsbook in New Jersey in 2020. It then added Colorado, Ohio and Iowa. Unfortunately for the company based in Malta, it didn’t make much of an impact in any of the states. Data from New Jersey show Tipico’s gross revenue from sports betting in March totaled less than $300,000.
The Earnings+More report says MGM Resorts is the leading frontrunner to purchase Tipico’s US sports betting platform. There was no mention if the company wants to sell its entire sportsbook operation in the US. Another potential buyer of the platform could be Fanatics, which considered buying Tipico’s US assets in 2022 but no deal was reached.
Online Casino Market More Friendly To Tipico
While Tipico has not done well at online sports betting, it’s been quite different for iGaming. Tipico collected gross gaming revenue of $1.3 million in March from its online casino offerings. In fact, Tipico is considered one of the top-ranked online casino operators in New Jersey, according to an Eilers & Krejcik gaming report in 2023.
Adrian Vella, US CEO at Tipico, touted the company’s iGaming product before launching in New Jersey last October.
“On the heels of earning a first-place national ranking, we are excited to unveil a completely original experience for customers who desire to play casino games in New Jersey.
“Unlike other online casinos that pigeonhole players, our product helps expedite the real money deposit and withdrawal process, providing a safe, secure experience. We are uniquely positioned to make huge leaps in 2024 and beyond with a combination of original and classic content, efficient processing and our trusted brand heritage.”
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