MGM Resorts International will form a new venture with Brazilian media conglomerate Grupo Globo to launch BetMGM in Brazil.
The deal will see BetMGM launch in the newly regulated market in early 2025 if the joint venture’s sports betting and iGaming licence is successfully approved later this year.
It follows Brazil’s Ministry of Finance earlier this month putting the finishing touches on the technical regulations which will apply in the licensed market.
MGM CEO Bill Hornbuckle (pictured) said: “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.
“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.”
MGM hailed the deal as aligning the company’s gaming expertise and LeoVegas technology with Grupo Globo’s superior Brazilian consumer knowledge and 70 million person strong reach.
The JV will have exclusive rights to all of MGM’s brands, and will aim to leverage the customer bases of both companies to succeed in the market.
Based in São Paulo, the venture will create a leadership team comprised on individuals from both companies, as well as additional new hires.
BetMGM sticks with JV-led strategy in Brazil
The vehicle will be the second high-profile gaming joint venture MGM will have engaged in, following on from its deal with Entain to power BetMGM in the US.
BetMGM has achieved relative success in the US, with analysts at JMP Securities naming it the third largest operator by GGR market share at 6.3% in Q2 2024.
However, some have questioned whether disagreements in the joint venture may have complicated matters for BetMGM in some respects.
Many global operators are preparing different strategies to conquer the Brazilian market, despite misgivings about the 15% player winnings tax present in the law.
NEXT.io reported this week that leading operator Flutter was planning an M&A-led strategy to grow its presence in the market through an acquisition of Betnacional.