German sports betting giant Tipico is forming a partnership with Ocean Casino Resort. They are expecting to launch in the fall of 2020. Tipico looks to make a splash in the New Jersey market as they set up their office along the Hoboken Riverfront.
New Jersey Division of Gaming Enforcement is still in the process of approving the deal. If they do approve, then Tipico will be running for the start of the NFL season. Tipico chose New Jersey because of how mobile betting is dominating the market.
In 2019, $3.8 billion of the $4.6 billion betting handle cam from online wagering. Tipico looks to launch a mobile betting service as well.
Moving in on the U.S.
Tipico is Germany’s leading sports betting company, according to its site. They have over 1200
betting shops and a mobile app. Their New Jersey operations are being run by former FantasyDraft CEO Steve Krombolz, who is overseeing 13 employees run the U.S. branch. Also, Tipico has set up a Twitter account where people can sign-up for an account.
The partnership with Oceanside Casino. Right now, the casino has four locations throughout New Jersey, and three of them already have sportsbooks. William Hill is already partners with Oceanside. However, there is still one Oceanside Casino that doesn’t have a sportsbook. The need for a mobile betting partner is where Tipico comes in.
Also, Oceanside has no partnership with a mobile betting platform. This helps Tipico fill that role for the final Oceanside Casino as the German sportsbook expects to have a mobile app running by the fall. The partnership provides for an interesting dynamic between Tipico and Oceanside.
Tipico will become the 18th mobile betting app in the Garden State.
Can Tipico Succeed in New Jersey?
The numbers speak for themselves oversees. Tipico has over 1200 betting shops and a mobile app, as well as being the German leader in sports betting. Entering the U.S. market should not be a problem for the German sportsbook. However, entering the market in New Jersey could be a different story.
Some of the biggest companies have already planted their flag in the state. Names like FanDuel, DraftKings, BetMGM, PointsBet, and others have establishments in the New Jersey market. Now, Tipico is starting at zero in a brand new country.
The road will be difficult, but hiring a guy like Krombolz to oversee New Jersey should help them get started. Also, New Jersey saw $4.6 billion in bets made last year, and there is a chance that Tipico can see some of that money wagered through their operations.
Tipico ranked sixth on the 2019 EGR Power 50 list of online gaming operators, which is one spot ahead of William Hill, who is also partners with Ocean Casino. Overall, Tipico should find its way into the U.S. sports betting market. However, it could take them some time to learn how to navigate the waters.
Tipico plans on using their technology and pricing in the U.S., which is similar to how they make lines and odds over in Europe. The German company could find success early on and become a huge U.S. player. Right now, they need to focus on launching before the 2020 NFL season.