Online gambling

A change in Gannett’s deal could signal the release of Tipico’s US online game

A single letter separates the English and German words “aggressive” and aggressive, but this descriptor does not match typicalapproach to online gambling in the United States, regardless of the language you speak. A recent change in the German gambling company’s advertising contract with the American newspaper conglomerate Gannet indicates an explanation for this lack of vigor.

Rumors swirled about Tipico cutting its losses in the United States. The new deal with Gannett might be more about Gannett’s interests than Tipico’s ambitions, but it’s a decision Tipico doesn’t make if it’s “aggressive in den Vereinigten Staaten (in the US)”.

American online gamer Tipico modifies its agreement with Gannett

Last week, Gannett held its second-quarter earnings call for investors, and the investors who took part probably wished they had succeeded. According to Rick Edmonds of PointerGannett lost $54 million in the quarter.

The owner of USA today, about 200 other regional newspapers and several digital publications in the United States are preparing to lay off staff. CEO of Gannett Mike Roseau explained that ad revenue fell short of expectations during the quarter. Reed also confirmed an interesting change involving Tipico.

Reed said an agreement with Tipico “has been modified to allow for joint ventures with other sports betting companies.” Just over a year ago, Gannett and Tipico formed an exclusive partnership that made Tipico the only provider of sports betting odds for Gannett’s full line of digital and print publications.

The modification has an obvious advantage for Gannett.

Why a Tipico exclusive never made much sense to Gannett

To date, Tipico’s US operations include an online casino in New Jersey and online sports betting in New Jersey, as well as an online sportsbook in Colorado. Thus, most readers of Gannett saw odds they couldn’t bet on even if they wanted to.

Part of the financial incentive for Gannett was convert readers into Tipico punters. Gannett basically got an undisclosed ‘referral’ bonus for each customer he drove to Tipico. The value of this for Gannett, however, was limited by Tipico’s small footprint in the industry.

This change is not a total divorce between the two. It just frees up Gannett to pursue similar arrangements with Tipico, well, non-competitors – in states where Gannett operates, but not Tipico. With Gannett struggling to secure advertising funds, this is a much-needed new avenue.

It is unclear whether Tipico made Gannett any promises of expansion into other markets during initial contract negotiations. Maybe Gannett just saw an advertiser offer money and then decided to cash the check to take care of the rest later. Anyway, Tipico hasn’t really been chomping at the bit expand its business in the United States.

Tipico’s indifference to online gambling in the United States

Tipico has agreements opening the door to online sports betting in Indiana, Iowaand Ohio as well. However, Tipico hasn’t seemed to mind taking advantage of his opportunities in Indiana and Iowa thus far.

Her dealings in Ohio suggest she should be more active there. Both Columbus Crew of MLS and the Columbus Blue Jackets of the NHL announced sports betting partnerships with Tipico. The involvement of these parties will likely prompt Tipico to make Ohio its third active US market in 2023.

However, the question might be how long that might be. There have been rumors that Fanatics has acquired Tipico’s US operations. The deals with the Blue Jackets, Crew and what remains of the contract with Gannett could help Tipico negotiate a higher price with Fanatics.

An acquisition could actually be a great outcome for Tipico’s US operations at this stage as well. Plus, it could have been the end of the game from the start. If he doesn’t invest the resources to compete domestically, buying Fanatics could be more money than he’s currently making on his relatively small business.

CNBC reported that price was the issue that delayed the Fanatics acquisition, so perhaps the modified deal with Gannett comes at a bad time for Tipico. In a nod to a famous The Empire Strikes Back line, Tipico may be praying that Gannett doesn’t change it further.