MGM Partnering with Grupo Globo for Brazil Sports Betting Permit

MGM Partnering with Grupo Globo for Brazil Sports Betting Permit

MGM Resorts International announced today that it is collaborating with Grupo Globo, a Latin American media behemoth, to seek an iGaming and sports betting license in Brazil.

If MGM is granted permission, which may occur before the end of the year, it would launch the new business in Brazil in 2025 under the BetMGM name. The Brazilian endeavor was referred to by the gambling corporation as a "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 gambling corporation also mentioned that by partnering with Grupo Globo, MGM's many casino brands will be able to be utilized in Brazil, giving access to Brazilian clients of both companies. Grupo Globo is one of the biggest media companies in Latin America, and it will celebrate its 100th anniversary next year. Because it owns at least six sports networks in Brazil, the business is a sensible partner for any casino operator looking to offer sports betting in the nation. 

The Significance of Brazil Sports Betting 

Brazil is the most populous and economically significant country in Latin America. Even by themselves, those statistics demonstrate the market's attraction to global gaming giants like MGM.

As stated in the press release by MGM, the nation's betting market is projected to be worth $3 billion and is expanding at a double-digit rate every year, with over 20 million active bettors. If the number is correct, $3 billion would place the state among the top in the US for handle of sports wagering and iGaming.

Brazil is home to 20 million people, which is less than 10% of the world's population. Despite this, the country is the sixth largest in terms of population, so there is still plenty of space for gaming businesses to expand their online casino and sports betting products. Furthermore, since Brazil lacks physical casinos, the market is dominated by more affordable online wagering options.

In summary, Europe's developed betting markets and the US's stalling legislative progress make Brazil an excellent global destination for iGaming and sportsbook companies.

Additional Information About MGM Brazil

Sao Paulo will serve as the home base for the MGM/Grupo Globo collaboration. The media release omitted information about the partnership's finances as well as the entity that will hold majority control and if it will be divided 50/50.

134 businesses expressed interest in possibly vying for licenses to operate sports wagering in Brazil as of December 2023, but rumors circulate that some of those businesses—including US-based operators—are just hitting the tires and waiting to see what happens.

“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.”