MGM Resorts International, one of the world’s biggest gaming and entertainment companies, announced it has formed a new venture with the largest media group in Latin America, Grupo Globo, to seek a sports betting and iGaming license in Brazil.
Brazil is quickly becoming one of the most attractive international betting markets to enter, following the country’s president, Luiz Inacio Lula da Silva, signing a bill into law in 2023 to provide a regulatory framework for Brazil to use for its emerging sports betting industry.
Brazil has opted to use the International Betting Integrity Association (IBIA), which is an independent sports integrity monitoring body aimed at preserving ethical sports betting and eliminating suspicious betting activity, such as match-fixing scandals.
Currently, Brazil has more than 20 million sports bettors with an estimated market size exceeding $3 billion, with number forecasts projecting even bigger leaps in the coming years.
As a result of the BetMGM venture with Grupo Globo, the primary goals to achieve are aligning MGM Resorts’ gaming and entertainment expertise, along with its LeoVegas software, with the consumer knowledge base that Grupo Globo possesses in Brazil. This venture is expected to reach 70 million people each day through various BetMGM-branded platforms as both parties work toward creating a unique product in Brazil’s sports betting market.
“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,” stated Bill Hornbuckle, CEO and president of MGM Resorts.
“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.”
Once the application for a license is approved, this joint venture is expected to launch in Brazil during the first months of 2025, advertising its BetMGM brand. It’s not a cheap endeavor, as 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.
