MGM Resorts and Grupo Globo have partnered to form BetMGM Brazil as they pursue a sports betting license in South America’s largest market.
The two companies announced the joint venture in a press release Thursday.
BetMGM Brazil will launch in early 2025 should it be awarded a sports betting license.
LeoVegas to power BetMGM Brazil
MGM Resorts acquired LeoVegas from Tipico in June, giving it the international sports betting platform that will host BetMGM Brazil. The deal is expected to close in the coming months, with key Tipico US personnel moving into tech and trading positions across the globe.
“By controlling our own sportsbook technology, we ensure that we will deliver the world’s greatest iGaming experience to customers across all our markets and brands,” LeoVegas CEO Gustaf Hagman said at the time of the announcement.
Largest South American market
Brazil’s grey market has more than 20 million active bettors, representing approximately $3 billion in market size, according to the release.
Brazil legalized sports betting in late 2023. The regulatory process to vet operators is slated for the second half of 2024, setting up a formal launch for 2025. Sportradar has estimated Brazil’s sports betting market could grow to $5.4 billion with regulation, about half the size of the U.S.
“Obviously, we have our eyes on South America and Brazil,” MGM Resorts CEO & President Bill Hornbuckle said during the company’s second-quarter earnings call with investors. “And so there’s real upshoot there and real money to be made in an organization that’s already making money.”
Gary Fritz, president of MGM Resorts International’s online gaming division, added that Brazil and other markets will see “modest” levels of investment ahead of their launches, but “nothing at the scale of what we’ve done here at BetMGM in the US.”
BetMGM Brazil to lean on media assets
Founded in 1925, Brazilian-based Grupo Globo is Latin America’s largest media group. It owns several flagship TV networks across the region, as well as film networks, magazines and newspaper publishers. It runs the joint venture NBCUniversal International Networks Brasil alongside BetMGM partner Comcast.
“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,” Hornbuckle said in the press release.
“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.”
BetMGM Brazil will be headquartered in Sao Paulo and be comprised of leadership from both companies.
