MGM Resorts and Grupo Globo have announced a joint venture to apply for a BetMGM-branded gambling license in Brazil. The partnership is set to launch its product in early 2025 under the BetMGM brand, pending approval of the license. Grupo Globo, the largest media group in Latin America, with over 70 million daily users across its television, film, radio, and online services, will be partnering with MGM Resorts to bring a unique and exciting product to the Brazilian market.
The press release announcing the partnership highlighted that the venture will have exclusive rights to all of MGM Resorts’ iconic brands and leverage the customer bases of both companies to establish a one-of-a-kind product in Brazil. MGM Resorts CEO Bill Hornbuckle expressed his excitement about the strategic alliance with Grupo Globo and emphasized the significance of entering the Brazilian market as a key milestone in the company’s growth strategy.
Brazil has recently announced the legalization of sports betting, with the market expected to be worth over $4 billion within the next five years. This move has attracted the interest of several operators, with seven already applying for gambling licenses in the country. In addition to sports betting, Brazil has clarified that slots and popular casino games like blackjack and roulette will also be allowed.
The Brazilian government aims to fully regulate the gambling market to capture potential tax revenue, estimated to be worth BRL3 billion (US$610 million) annually. Licensed operators will be required to establish a presence in Brazil, pay a 12% tax on Gross Gaming Revenue (GGR), a 15% corporate tax rate, and additional fees for social contributions. Furthermore, operators will need to pay BRL30 million ($5.9 million) for a five-year license.
With the market opening up and further guidance being provided, more companies are expected to apply for licenses in the coming months. Brazil’s Ministry of Finance has already received interest from 134 companies looking to enter the market. Interested companies will have until December to submit their applications to avoid potential penalties in 2025.
Overall, the partnership between MGM Resorts and Grupo Globo signifies a significant development in the Brazilian gambling market, with the potential for BetMGM to establish itself as a leading operator and provide top-notch gaming experiences to customers in Brazil. The legalization of sports betting and casino games in Brazil opens up a lucrative opportunity for operators to tap into a growing market and secure a strong foothold early on.