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MGM Resorts (MGM), Grupo Globo to Launch BetMGM in Brazil

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MGM Resorts International (MGM - Free Report) has taken a significant step forward in its global expansion strategy by forming a strategic alliance with Grupo Globo, the largest media group in Latin America. Together, the companies aim to secure a sports betting and iGaming license in Brazil, one of the most promising emerging markets in the gaming industry.

The newly established venture will launch under the BetMGM brand if the license is approved later this year, with plans to go live in early 2025. By combining MGM Resorts' extensive gaming and entertainment expertise with Grupo Globo's deep understanding of the market of Brazil, the partnership is poised to create a powerful and unique product tailored to the preferences of consumers in Brazil.

Brazil's market potential is immense, with more than 20 million active bettors and an estimated market size exceeding $3 billion, growing at double-digit rates annually. This makes Brazil an attractive target for international gaming operators and MGM Resorts' strategic move with Grupo Globo is designed to capitalize on this opportunity.

The venture will benefit from the reach of Grupo Globo, which connects with nearly 70 million Brazilians daily across its various media platforms. This extensive reach, combined with MGM Resorts' industry-leading technology and iconic brand portfolio, promises to deliver a best-in-class betting platform that will stand out in the competitive market of Brazil.

MGM Resorts' CEO & president, Bill Hornbuckle, emphasized the importance of this partnership, stating that entering the market of Brazil is a key milestone in the company's growth strategy. With Grupo Globo's unparalleled market expertise, the venture is well-positioned to establish itself as a leading player in Brazil's gaming landscape.

This partnership marks a pivotal moment for MGM Resorts as it expands into one of the world's most exciting gaming markets. If successful, the venture could unlock significant value for both companies and provide Brazil’s consumers with a cutting-edge betting experience. Investors should keep a close eye on the progress of this venture as it navigates the regulatory landscape and prepares for its anticipated launch in 2025.

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Price Performance

Shares of this owner and operator of casino resorts through wholly-owned subsidiaries have lost 7.9% in the past six months against the Zacks Gaming industry’s 2.5% growth. Although the company’s shares have underperformed its industry, MGM’s ongoing focus on sports betting and iGaming along with international expansion, asset-light strategy and non-gaming activities is likely to foster its growth in the upcoming period.

The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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