USA Today Owner Inks Deal With Tipico to Enter Legal Sports Betting Market
The parent company of USA Today announced an exclusive deal with Tipico Sportsbook to enter legal US sports betting after ditching an illegal sportsbook.
Tipico is a Malta-based gambling company with a legal US sportsbook license. USA Today newspaper is owned by Gannett CO., an American mass media holding company, and the largest publisher in the US as measured by total daily circulation.
Under the deal, Tipico becomes the exclusive odds source for Gannett-owned media websites in a deal valued at $90 million.
Tipico operates in the state of New Jersey since Dec. 2020 through its mobile app. The company had gained approval from the state’s Division of Gaming Enforcement (DGE) to offer its sports betting last September.
As part of the five-year deal, Tipico – the largest betting provider in Germany – will pay $90 million over five years to be the exclusive sports betting and iGaming provider for Gannett.
The media company had indicated its interest to enter the US sports betting space in March.
The complementary content deal will also enable Tipico to increase its presence in the US, the biggest attraction for Europe-based operators since the PASPA ruling.
The gambling company will also pay additional fees for new customer signups, besides integrating its odds, free-to-play games, and betting trends across USA Today portfolio.
The USA Today network spans more than 450 sites, including – Golfweek, MMA Junkie, The Indy Star, Detroit Free Press, and For The Win.
Tipico will also co-brand the media giant’s NFL Wire Team sites and For The Win.
What Did Tipico Say?
The German company – now headquartered in Malta – says the integration advances its plans to expand offerings in the US. Tipico, which is currently live in New Jersey, plans to launch in Colorado by the upcoming NFL season.
In April 2016, a private equity firm CVC Capital Partners acquired a majority in Tipico.
The company’s CEO of US business, Adrian Vella said Tipico is thrilled to gain exclusive access to Gannet’s portfolio of iconic brands and premium digital properties.
What Can Gannett Have From the Deal?
Nearly 46 million sports fans, which Gannett claims its audience, craved analysis and betting insight, the media giant said.
Gannet chairman Michael Reed said Tipico adds remarkable expertise from their European operations and next-gen product capabilities. This will enable Gannett’s audience and local consumers a way to become even more invested in their favorite games and sport.
Under the agreement, the owner of USA Today can also purchase up to 4,990 common shares in Tipico US, representing a minority interest.
USA Today Group Ditches Unregulated Sportsbook
The agreement with legal US sportsbook means Gannet will no longer use odds from Bovada, an offshore sports betting company not licensed anywhere in the US.
Though according to the American Gaming Association, Bovada is an illegal sportsbook, it still offers unregulated sports betting in the US.
Branded sports betting content may debut as soon as August ahead of the NFL season. Tipico’s sports betting operations will be live in New Jersey and Colorado by this fall, allowing readers to place wagers via Tipico Sportsbook.
The news of the deal however didn’t impress the market as Garnett’s stock price flat in early trading on Tuesday.
The Gannett-Tipico alliance follows an identical arrangement between the Associated Press and FanDuel, which is the biggest player in US sports betting. In comparison Tipico is a struggler, finding its place in a highly competitive legal market.