MGM RESORTS INTERNATIONAL, GRUPO GLOBO FORM NEW VENTURE SEEKING SPORTS BETTING & IGAMING LICENSE IN BRAZIL

Rhea-AI Summary

MGM Resorts International and Grupo Globo have formed a new venture to seek a sports betting and iGaming license in Brazil. The venture aims to launch under the BetMGM brand in early 2025, pending regulatory approval. This strategic alliance combines MGM Resorts' gaming expertise with Grupo Globo's market reach and consumer knowledge in Brazil.

Key points:

• Brazil has over 20 million active bettors and an estimated market size of $3+ billion
• The venture will have exclusive rights to MGM Resorts' iconic brands
• Headquarters will be established in Sao Paulo
• The Brazilian market is growing at double-digit rates annually

This move aligns with MGM Resorts' goal to become the world's premier gaming entertainment company and marks a significant step in their growth strategy.

Positive

• Strategic alliance with Grupo Globo, Latin America's largest media group, for entry into the Brazilian market
• Potential access to a $3+ billion market with over 20 million active bettors
• Exclusive rights to all of MGM Resorts' iconic brands for the Brazilian venture
• Leveraging Grupo Globo's reach of almost 70 million people daily for rapid market penetration
• Entry into one of the fastest-growing regulated markets in the world

Negative

• Operations are subject to local gaming regulatory approvals
• Potential delays in launch if license approval is not obtained as expected
• Competitive market entry with established local and international operators already present

Insights

Financial Analyst

This strategic alliance between MGM Resorts and Grupo Globo marks a significant move into the burgeoning Brazilian gaming market. With an estimated market size of $3 billion and double-digit annual growth, this venture positions MGM for substantial revenue potential. The partnership leverages Grupo Globo's extensive reach of 70 million daily consumers, potentially providing a significant competitive advantage in customer acquisition.

However, investors should note that success hinges on regulatory approval and effective execution in a new market. The 2025 launch timeline suggests a delay in immediate financial impact, but could allow for thorough market preparation. This move aligns with MGM's global expansion strategy and could diversify its revenue streams, potentially offsetting risks in other markets.

Market Research Analyst

The Brazilian betting market presents a lucrative opportunity with 20 million active bettors. MGM's partnership with Grupo Globo is a strategic masterstroke, combining MGM's gaming expertise with Globo's deep local market knowledge. This could lead to rapid market penetration and brand establishment.

The exclusive rights to MGM's iconic brands, coupled with Grupo Globo's massive consumer base, create a unique value proposition. However, the success will depend on navigating local regulations and cultural nuances effectively. The venture's ability to offer a localized, responsible gaming experience will be important in capturing and retaining market share in this competitive landscape.

Legal Expert

The regulatory landscape for sports betting and iGaming in Brazil is still evolving, making this venture both opportunistic and risky. The statement that the venture's operations are subject to local gaming regulatory approvals is crucial. Investors should closely monitor the regulatory process, as delays or unfavorable regulations could significantly impact the venture's timeline and profitability.

Establishing headquarters in Sao Paulo and forming a leadership team with local expertise demonstrates a commitment to compliance and understanding of local laws. This approach may increase the likelihood of obtaining necessary approvals and navigating potential regulatory challenges in this nascent market.

Strategic alliance pairs MGM Resorts' gaming expertise with Grupo Globo's superior reach and consumer knowledge in the Brazilian market

LAS VEGAS, Aug. 15, 2024 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") and Grupo Globo, Latin America's largest media group, today announced the formation of a new venture to seek a sports betting and iGaming license in Brazil. If its license is approved later this year, the new venture will launch in Brazil in early 2025 under the BetMGM brand, bringing a responsible, best-in-class betting platform to one of the newest and fastest-growing regulated markets in the world.

The new BetMGM-branded venture will align MGM Resorts' industry-leading gaming and entertainment expertise, and proven LeoVegas technology, with Grupo Globo's superior consumer knowledge in Brazil, and reach of almost 70 million people every day through its multiple vehicles, to create a product with significant scale, resources and access. It 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.

Brazil has more than 20 million active bettors representing an estimated market size of more than $3 billion, growing double digits every year.

"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," said MGM Resorts CEO & President Bill Hornbuckle. "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."

The venture will establish its headquarters in Sao Paulo and elect a leadership team to be comprised of top talent from each company and additional new hires to oversee the venture's ongoing operations and growth.

Commencement of the new venture's operations is subject to local gaming regulatory approvals.

About MGM Resorts International
MGM Resorts International (NYSE: MGM) is an S&P 500® global gaming and entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 31 unique hotel and gaming destinations globally, including some of the most recognizable resort brands in the industry. The Company's 50/50 venture, BetMGM, LLC, offers sports betting and online gaming in North America through market-leading brands, including BetMGM and partypoker, and the Company's subsidiary, LV Lion Holding Limited, offers sports betting and online gaming through market-leading brands in several jurisdictions throughout Europe. The Company is currently pursuing targeted expansion in Asia through the integrated resort opportunity in Japan. Through its "Focused on What Matters: Embracing Humanity and Protecting the Planet" philosophy, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests, and in the communities where it operates. The global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®. For more information, please visit us at www.mgmresorts.com. Please also connect with us @MGMResortsIntl on Twitter as well as Facebook and Instagram.

About Grupo Globo
Grupo Globo is a private business group headquartered in Brazil.  The group's businesses are diversified across media, entertainment, technology, and investments.  Latin America's largest media and entertainment conglomerate, its flagship television channel, TV Globo, has primetime audiences that regularly reach 50 million people. The group also owns Globoplay, the leading Brazilian OTT video network, and owns the leading content properties in sports, news and entertainment, across all distribution channels, including pay-tv, free to air channels and digital, which reach about 70 million unique Brazilians daily and 160 million monthly.  The group is one of the world's largest producers of high-quality, scripted content, and the largest producer of Portuguese language content globally. Grupo Globo's content businesses also include the leading radio network, the top newspapers and magazine titles. It has investments in over 30 companies that provide Brazilians with innovative products and services across finance, consumer products, retail and technology. Grupo Globo's portfolio of investments includes some of the most well-known companies in the Brazilian market today.  With its unparalleled reach, creative expertise and unique insights about Brazil, Grupo Globo brings the highest-quality  products, solutions and services to the Brazilian population.

Forward-Looking Statements
Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and involve risks and/or uncertainties, including those described in the Company's public filings with the Securities and Exchange Commission. Forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "expects," "could," "may," "will," "should," "seeks," "likely," "intends," "plans," "pro forma," "projects," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. The Company has based forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, the Company's expectations regarding arrangements between the Company and Grupo Globo, including formation of the joint venture; approval of a sports betting and iGaming license in Brazil; entry into the Brazilian market; and the expected performance of the joint venture. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include the effects of economic conditions and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States, Brazil and the world, risks relating to international development, operations, permits, licenses (including delays or other risks related to obtaining a sports betting and iGaming license in Brazil), financings, approvals and other contingencies described in the Company's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

Media Contact: 
Brian Ahern
media@mgmresorts.com

 

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SOURCE MGM Resorts International

FAQ

When is BetMGM expected to launch in Brazil?

BetMGM is expected to launch in Brazil in early 2025, subject to regulatory approvals.

What is the estimated size of the Brazilian sports betting market?

The Brazilian sports betting market is estimated to be worth more than $3 billion, with over 20 million active bettors.

Where will the new MGM-Grupo Globo venture be headquartered?

The new venture will establish its headquarters in Sao Paulo, Brazil.

How many people does Grupo Globo reach daily in Brazil?

Grupo Globo reaches almost 70 million people every day through its multiple vehicles in Brazil.

What growth rate is the Brazilian betting market experiencing?

The Brazilian betting market is growing at double-digit rates annually.