MGM to enter Brazil through “landmark” JV with Grupo Global
Operator announces plans to launch BetMGM in country, with license application submitted and formation of São Paulo-based leadership team in the works
MGM Resorts International is to establish a joint venture (JV) with Brazilian media giant Grupo Global ahead of the launch of the regulated online sports betting and igaming market in January.
The duo has applied for a Brazilian license, with plans to deploy the BetMGM brand in the market “in early 2025,” if the application is successful.
BetMGM Brazil would be powered by MGM Resorts subsidiary LeoVegas Group’s technology and would tap into Globo’s “superior consumer knowledge in Brazil.”
MGM Resorts International said Globo reaches almost 70 million people every day in the South American country via its multiple channels, with it’s flagship TV channel, TV Globo, attracting primetime audiences of more than 50 million.
Bosses said the combination of forces would “create a product with significant scale, resources and access,” while BetMGM Brazil would retain the rights to use MGM Resorts International brands and imagery.
The JV will be based in São Paulo, with a local leadership team comprising talent from both parent companies to be confirmed.
MGM Resorts International said additional new hires would be brought in to “oversee the venture’s ongoing operations and growth.”
The Las Vegas-based casino giant said Brazil has more than 20 million active bettors representing an estimated market size in excess of $3bn – and is “growing double digits each year.”
Founded in 1925, privately owned Grupo Globo is one of the largest media groups in the Latam region, a business that encompasses 26 pay TV channels and a free-to-air platform, an extensive radio network, 21 brands within its editorial division, and an investment arm – Globo Ventures.
Bill Hornbuckle, MGM Resorts International CEO, said the deal with Globo aligned with the operator’s plans to become the “world’s premier gaming entertainment company.”
He remarked: “This strategic alliance with Grupo Globo, and entry into the Brazilian market, is a landmark step forward and key milestone in our growth strategy.
“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 official partnership with Globo comes after Hornbuckle said on the Q1 earnings call in May that expansion into Latam with BetMGM was on the agenda.
Brazil has been a favourite topic of Hornbuckle in recent months. In March he said: “If you think about a place like Brazil or some other new markets in Latam, we are positioned and ready to go after them, and we are excited about that.
“If Brazil takes off and we gain a reasonable share, like 10% to 15% market share, it is a half-a-billion dollars-a-year business.”
The Brazilian market is due to go live in January, after the Ministry of Finance spent the summer finetuning the regulatory framework.
Licenses will cost BRL30m ($5.5m) and last for five years, with successful applicants able to launch three ‘skins’ in the market.