MGM Resorts International and Grupo Globo have formed a strategic partnership to transform the Brazilian sports betting and online gaming market.
If the license is approved by the end of the year, the companies intend to launch the BetMGM platform in early 2025. The operation, which will be based in São Paulo, aims to take advantage of the rapid growth of the sector in Brazil.
Golden opportunity for Brazil
The online betting market in Brazil is growing rapidly, driven by new legislation. The law requires international operators to have Brazilian partners with a 20% share.
Thus, the partnership between MGM and Globo meets this requirement, strategically positioning the companies to explore the market, which already has more than 20 million active bettors.
The expectation is that the betting market in Brazil will generate US$3 billion in revenue this year alone, with a double-digit expansion rate in the coming years.
“This is without a doubt the largest source of regulated growth available globally outside of the U.S. over the next five years,” said Gary Fritz, leader of MGM’s interactive business, in an interview with Bloomberg News.
MGM and Globo could become a global giant
MGM, known for being the largest casino operator on the Las Vegas Strip, already runs BetMGM’s U.S. online business in partnership with Entain. But now, the company is looking to expand its global presence with a focus on Brazil.
On the other hand, Globo:
- reaches around 70 million people daily through its various platforms
- offers a projection of reach unmatched by MGM.
The partnership between MGM and Grupo Globo goes beyond betting on the growth of betting in Brazil. It reflects global interest in the Brazilian market.
With MGM’s expertise and Globo’s vast reach, this alliance promises to dominate the betting sector in the country. Therefore, Brazil can have international projection in the online sports betting sector.