American mass media holding company Gannett Co. has signed an exclusive agreement with sportsbook and gaming operator Tipico’s US subsidiary.
The deal sees Tipico become the exclusive sports betting and igaming provider for Gannett, owner of the USA Today Network and a range of other local media assets across the US such as the Indianapolis Star and The Oklahoman.
The agreement replaces Gannett’s partnership with MGM-Entain joint venture BetMGM, meaning the media business will now promote Tipico odds instead of BetMGM’s.
Tipico will integrate odds, props, free-to-play games and betting trends across the USA Today Network, and has committed to $90m (£65m/€76m) in media spend over the five-year agreement. The operator will also pay performance incentives to Gannett for customer referrals.
Subject to certain conditions being met over the term of the agreement, Gannett will have the right to acquire up to 4,990 common shares in Tipico’s US business, representing a minority interest.
In return, Gannett will provide the operator with exclusive access to premium marketing assets at a pre-negotiated value, based on the expected aggregate sum of the cash consideration, performance incentives, and right to acquire common shares.
