BetMGM could launch in Brazil
MGM Resorts International and Brazil’s Grupo Globo have confirmed they are set to launch a partnership for a new sports betting and gaming license. If the license is approved, the partnership is expected to launch its product in early 2025, which will come under the BetMGM brand.
Grupo Globo is the largest media group in Latin America, comprising television, film, radio, and online services which have over 70 million daily users.
The press release announcing the partnership stated that the venture “will have exclusive rights to all of MGM Resorts’ iconic brands and will count on the customer bases of both companies to quickly establish a one-of-a-kind product that sets itself apart in the Brazilian market.”
MGM Resorts CEO Bill Hornbuckle stated: “MGM Resorts is committed to becoming the world’s premier gaming entertainment company, and this strategic alliance with Grupo Globo, and entry into the Brazilian market, is a landmark step forward and key milestone in our growth strategy.”
this historic alliance allows us to quickly enter the market with the scale and expertise needed”
“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 and provider of the very best experience to customers across Brazil.”
Brazil set for legal gambling
Brazil announced at the start of this year that it would legalize sports betting in 2024 after President Luiz Inácio Lula da Silva signed off on the move.
Since then, seven operators have applied for gambling licenses in Brazil, with the country clarifying last month that slots and casino games such as blackjack and roulette would also be allowed, along with sports betting.
market is expected to be worth over $4bn within the next five years
The Brazilian gambling market is expected to be worth over $4bn within the next five years, making it a highly lucrative market for operators to attempt to claim a significant market share early on.
More applicants expected
As a result of further guidance being published, the number of applications is expected to increase in the coming months. When the law was signed, Brazil’s Ministry of Finance stated that 134 companies had expressed an interest in applying for a license.
Brazil has been a haven for offshore operators in recent years, and the country has sought to fully legalize gambling in order to capture the potential tax revenue, which is estimated to be worth BRL3bn (US$610m) per year.
According to the law, licensed operators will be required to base themselves in Brazil and pay a 12% tax on Gross Gaming Revenue (GGR), as well as a 15% corporate tax rate, plus additional fees for social contributions. Operators will also have to pay BRL30m ($5.9m) for a five-year license.
Any interested companies will have until December to apply or face potential penalties in 2025.