If the license currently being processed by the Betting Management System of the Ministry of Finance’s Secretariat of Prizes and Betting (SPA) is approved, BetMGM will launch in early 2025.
The objective of the investment, which is expected to be headquartered in São Paulo, is to take advantage of the good moment in the betting market in Brazil. Last year, specific legislation was approved to establish a regulatory framework for these businesses.
Brazil, which is already seeing a boom in online gambling, passed legislation last year that established a regulatory framework for such betting. This included a requirement that operators have a Brazilian partner with at least a 20% stake in the business.
A number of U.S. companies have been seeking to partner with local companies. The country has more than 20 million active bettors. The market is expected to generate US$3 billion in gambling revenue this year and is growing at a double-digit pace, the companies said.
“MGM Resorts is committed to becoming the world’s leading gaming entertainment company, and this strategic alliance with Grupo Globo, and entry into the Brazilian market, is an important step 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 experience in this market than Grupo Globo,” said MGM Resorts CEO and Chairman Bill Hornbuckle.
“This historic alliance allows us to quickly enter the market with the scale and experience to establish an initial position as a leading operator and provider of the best customer experience throughout Brazil,” the executive added.
Since the law was enacted, operators have been required to have a Brazilian partner with at least 20% stake in the venture. As a result, several foreign companies have sought partnerships with local companies.
MGM operates BetMGM in the US in partnership with Entain, an international sports betting and gambling company. The expansion in Brazil is along with with Globo, which owns TV stations and other properties with a reach of approximately 70 million.
Source: GMB
