MGM Resorts has taken a significant step toward expanding its global presence by partnering with Latin America's largest media conglomerate, Grupo Globo, to enter Brazil's burgeoning licensed betting market. The joint venture will operate under the BetMGM brand, utilizing LeoVegas' advanced betting and gaming technology to establish a formidable presence in the region.
Strategic Alliance for a Major Market Entry
The collaboration with Grupo Globo, a media powerhouse with an extensive consumer network that reaches approximately 70 million people daily across various platforms, including television, digital, radio, and print, positions MGM favorably in one of the world's most dynamic gaming markets.
The scale and influence of Grupo Globo make it an ideal partner for MGM, as the two companies aim to leverage their combined strengths to create a widely recognized and trusted betting brand in Brazil.
Pending the approval of its license, the joint venture is slated to launch in 2025, with its headquarters located in São Paulo. This strategic location will serve as the central hub for operations, ensuring the venture is well-positioned to capitalize on the rapidly growing demand for licensed sports betting and gaming services in Brazil.
As part of the agreement, the joint venture will maintain exclusive rights to MGM Resorts' iconic brands, which are well-known and respected globally. This exclusivity is expected to play a crucial role in establishing the BetMGM brand in Brazil, as the venture will draw on the existing customer bases of both MGM and Grupo Globo to create a compelling offering that resonates with Brazilian consumers.
MGM CEO Bill Hornbuckle emphasized the significance of this partnership in the company’s broader 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,” he said.
The formation of this joint venture comes on the heels of MGM’s recent strategic moves to enhance its global operations. In June, MGM’s subsidiary LeoVegas completed the acquisition of Tipico US’ betting technology, a move designed to provide MGM with an in-house platform that can be utilized across Europe and Latin America. This acquisition is expected to complement the technology infrastructure needed for the successful launch and operation of BetMGM in Brazil, ensuring that the platform offers a seamless and user-friendly experience for Brazilian bettors.
The combination of Grupo Globo's unmatched market reach and MGM's extensive experience in the gaming industry is poised to create a powerful new player in the Brazilian betting market. With the legal framework for sports betting in Brazil continuing to evolve, the timing of this joint venture could not be more opportune.
A Promising Future for BetMGM in Brazil
As the Brazilian marketl gears up for the introduction of regulated sports betting, the partnership between MGM and Grupo Globo positions BetMGM as a frontrunner in this exciting new frontier. The venture's ability to tap into Grupo Globo’s vast media network, coupled with the technological prowess of LeoVegas, will likely enable BetMGM to capture a significant share of the market.
The success of this venture could serve as a blueprint for future expansions in other emerging markets, further solidifying MGM's position as a global leader in the gaming and entertainment industry.
Source:
''MGM enters joint venture with Grupo Globo to launch BetMGM in Brazil'', igamingbusiness.com, August 15, 2024.
