MGM Resorts International formed a joint venture with Rio de Janeiro’s Grupo Globo to tackle the growing Brazilian sports and online betting market.

If their licence is approved later this year, the pair plan to launch in early 2025 under the BetMGM brand, according to a statement from the companies. The operation will be headquartered in Sao Paulo.

Brazil, which is already seeing an online gambling boom, passed legislation last year that established a regulatory framework for such betting. That included a requirement that operators have a Brazilian partner with at least a 20% stake in the business.

A number of US companies have been looking to partner with local firms. 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 clip, the companies said. 

“This is without a doubt the largest source of regulated growth available globally outside of the US over the next five years,” Gary Fritz, who leads MGM’s interactive business, said in an interview.

MGM, the largest casino operator on the Las Vegas Strip, runs the BetMGM online business in the US in a partnership with Entain plc. It also has been expanding globally in online betting. 

Globo, a major Latin American media company, owns TV stations and other properties, that reach nearly 70 million people daily. 

  - Bloomberg