Posted on: August 15, 2024, 04:19h.
Last updated on: August 15, 2024, 04:19h.
MGM Resorts International said today it is partnering with Latin American media conglomerate Grupo Globo to pursue a sports wagering and iGaming license in Brazil.
Should MGM win the permit, which could happen before the end of this year, it would debut the new venture in Brazil in 2025 under its BetMGM brand. The gaming company described the Brazil effort as “BetMGM-branded venture.”
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, and reach of almost 70 million people every day through its multiple vehicles, to create a product with significant scale, resources and access,” according to a statement.
The gaming company added that the Brazil partnership will be able to leverage MGM’s various casino brands while accessing Brazilians that are customers of both MGM and Grupo Globo. Grupo Globo, which turns 100 years old next year, is one of Latin America’s largest media entities. The company makes for a practical sports betting partner in Brazil for any gaming operator because it owns at least half a dozen sports networks in the country.
Why Brazil Sports Betting Matters
Brazil is Latin America’s largest country by population and the region’s biggest economy. Alone, those data points highlight the allure of the market to international gaming companies such as MGM.
As MGM pointed out in the press release, there are more than 20 million active bettors in the country with an estimated market size of $3 billion, which is growing at a double-digit rate annually. Assuming that the estimate is accurate, $3 billion translates to one of the top states in the US for iGaming and sports wagering handle.
Brazil ranks as the sixth-largest country in the world by population, but 20 million represents less than 10% of the population, indicating there’s ample room for gaming companies to broaden the reach of internet casino and sports wagering offerings. Additionally, Brazil doesn’t have brick-and-mortar casinos, meaning more cost-efficient online wagering options dominate the market.
Bottom line: with Europe’s betting markets mature and legislative progress in the US slowing, Brazil is one of the best international opportunities for iGaming and sportsbook operators.
More MGM Brazil Details
The MGM/Grupo Globo venture will be based in Sao Paulo. The media statement didn’t include financial details of the partnership and it didn’t mention which entity will have majority control or if it will be split 50/50.
As of December 2023, 134 companies signaled interest in potentially bidding for sports wagering licenses in Brazil, but there’s chatter that some of those firms, including US-based operators, are merely kicking the tires and taking a wait-and-see approach.
“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,” said MGM CEO Bill Hornbuckle in the statement. “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.”