MGM Resorts Worldwide mentioned right now it’s partnering with Latin American media conglomerate Grupo Globo to pursue a sports activities wagering and iGaming license in Brazil.
The Brazilian flag flying in opposition to a backdrop of the solar. MGM is teaming up with Grupo Globo to pursue a sports activities betting license within the nation. (Picture: Pixabay)
Ought to MGM win the allow, which might occur earlier than the tip of this 12 months, it could debut the brand new enterprise in Brazil in 2025 below its BetMGM model. The gaming firm described the Brazil effort as “BetMGM-branded enterprise.”
The brand new BetMGM-branded enterprise will align MGM Resorts’ industry-leading gaming and leisure experience, and confirmed LeoVegas expertise, with Grupo Globo’s superior client data in Brazil, and attain of virtually 70 million folks day by day by its a number of autos, to create a product with vital scale, assets and entry,” in accordance with a press release.
The gaming firm added that the Brazil partnership will have the ability to leverage MGM’s numerous on line casino manufacturers whereas accessing Brazilians which might be clients of each MGM and Grupo Globo. Grupo Globo, which turns 100 years previous subsequent 12 months, is one in all Latin America’s largest media entities. The corporate makes for a sensible sports activities betting associate in Brazil for any gaming operator as a result of it owns at the least half a dozen sports activities networks within the nation.
Why Brazil Sports activities Betting Issues
Brazil is Latin America’s largest nation by inhabitants and the area’s greatest economic system. Alone, these knowledge factors spotlight the attract of the market to worldwide gaming firms resembling MGM.
As MGM identified within the press launch, there are greater than 20 million lively bettors within the nation with an estimated market measurement of $3 billion, which is rising at a double-digit price yearly. Assuming that the estimate is correct, $3 billion interprets to one of many prime states within the US for iGaming and sports activities wagering deal with.
Brazil ranks because the sixth-largest nation on the planet by inhabitants, however 20 million represents lower than 10% of the inhabitants, indicating there’s ample room for gaming firms to broaden the attain of web on line casino and sports activities wagering choices. Moreover, Brazil doesn’t have brick-and-mortar casinos, that means extra cost-efficient on-line wagering choices dominate the market.
Backside line: with Europe’s betting markets mature and legislative progress within the US slowing, Brazil is among the greatest worldwide alternatives for iGaming and sportsbook operators.
Extra MGM Brazil Particulars
The MGM/Grupo Globo enterprise will probably be primarily based in Sao Paulo. The media assertion didn’t embrace monetary particulars of the partnership and it didn’t point out which entity may have majority management or if will probably be cut up 50/50.
As of December 2023, 134 firms signaled curiosity in probably bidding for sports activities wagering licenses in Brazil, however there’s chatter that a few of these corporations, together with US-based operators, are merely kicking the tires and taking a wait-and-see method.
“Brazil is among the most fun and vibrant rising gaming markets on the planet, and nobody has extra publicity and experience on this market than Grupo Globo,” mentioned MGM CEO Invoice Hornbuckle within the assertion. “This historic alliance permits us to rapidly enter the market with the dimensions and experience wanted to determine an early foothold as a number one operator and supplier of the easiest expertise to clients throughout Brazil.”
