MGM Resorts International and Latin America media giant Grupo Globo have announced the formation of a new venture to seek a sports betting and iGaming license in Brazil. If the license is approved later this year, the new venture will launch in Brazil in early 2025 under the BetMGM brand.
According to the companies, the new BetMGM-branded venture will align MGM Resorts’ “industry-leading gaming and entertainment expertise, and proven LeoVegas technology, with Grupo Globo’s superior consumer knowledge in Brazil,” reaching about 70 million people daily through its multiple vehicles.
The venture will have exclusive rights to all of MGM Resorts’ brands and will count on the customer bases of both companies “to quickly establish a one-of-a-kind product that sets itself apart in the Brazilian market.”
Brazil is quickly becoming one of the most attractive international betting markets to enter, with more than 20 million active bettors, representing an estimated market size of more than $3 billion, growing double digits every year.
Along with this growth, Brazil is moving toward a more robust regulatory framework for its emerging sports betting industry after president Luiz Inacio Lula da Silva signed a bill into law in 2023 to that end.
Moreover, Brazil has opted to use the independent sports integrity monitoring body International Betting Integrity Association (IBIA) to preserve ethical sports betting and eliminate suspicious betting activity, such as match-fixing scandals.
For these reasons, MGM called Brazil “one of the newest and fastest-growing regulated markets in the world” in a press statement.
MGM Resorts CEO and President Bill Hornbuckle
“MGM Resorts is committed to becoming the world’s premier gaming entertainment company, and this strategic alliance with Grupo Globo, and entry into the Brazilian market, is a landmark step forward and key milestone in our growth strategy,” said MGM Resorts CEO and President Bill Hornbuckle.
“Brazil is one of the most exciting and vibrant emerging gaming markets in the world, and no one has more exposure and expertise in this market than Grupo Globo. This historic alliance allows us to quickly enter the market with the scale and expertise needed to establish an early foothold as a leading operator and provider of the very best experience to customers across Brazil.”
The venture will establish its headquarters in Sao Paulo and elect a leadership team composed of top talent from each company and additional new hires to oversee the venture’s ongoing operations and growth.
Commencement of the new venture’s operations is subject to local gaming regulatory approvals, the partners said. Operators who apply must pay a $5.9 million license that expires every five years, with an additional 12 percent gross gaming revenue tax enforced.
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Publish date : 2024-08-16 02:39:00
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