Posted on: August 15, 2024, 04:19h.
Last updated on: August 15, 2024, 04:19h.
MGM Resorts International announced a partnership with Grupo Globo, a Latin American media conglomerate, to pursue a sports wagering and iGaming license in Brazil.
If MGM secures the permit, they plan to launch the new venture under the BetMGM brand in Brazil by 2025. This partnership is described as a “BetMGM-branded venture.”
The new BetMGM-branded venture combines MGM Resorts’ gaming expertise and LeoVegas technology with Grupo Globo’s consumer knowledge in Brazil and vast reach of almost 70 million people daily through its various platforms, creating a product with significant scale and resources,” as per a statement.
The collaboration will leverage MGM’s casino brands and Grupo Globo’s media presence to access both companies’ Brazilian customer base. Grupo Globo, a key media entity in Latin America, owns several sports networks in Brazil, making it an ideal partner for gaming operators in the country.
Impact of Brazil Sports Betting
Brazil, being the largest country in Latin America with a strong economy, offers an attractive market for international gaming companies like MGM.
With over 20 million active bettors and a market size of $3 billion growing annually, Brazil presents a lucrative opportunity for iGaming and sports betting operators. This market size surpasses many US states in terms of iGaming and sports wagering activity.
Despite being the sixth most populous country globally, with only 10% active bettors, there is ample room for gaming companies to expand their online offerings in Brazil, especially since the country lacks physical casinos, leading to a dominant online wagering market.
Considering the maturity of European markets and slower progress in the US, Brazil emerges as a prime international market for iGaming and sportsbook operators.
More Insights on MGM’s Brazil Venture
The MGM/Grupo Globo venture will be headquartered in Sao Paulo, but financial details and control distribution remain undisclosed. As of December 2023, 134 companies expressed interest in obtaining sports wagering licenses in Brazil, but some are adopting a cautious approach, including US-based operators.
MGM CEO Bill Hornbuckle noted, “Brazil is one of the most exciting emerging gaming markets worldwide, and Grupo Globo’s expertise in this market is unparalleled. This partnership allows us to establish a leading position in the market quickly and offer the best gaming experience to customers in Brazil.”