Jonathan Halkyard, Chief Financial Officer of MGM Resorts International, spoke about the company's future expansion in Brazil through a joint venture (JV) with media giant Grupo Globo. During the recent 32nd Annual Leveraged Finance Conference at Deutsche Bank, he said that "the investment will be modest compared to other deals MGM has made in the digital space" and confirmed that they expect to have the local license "by January 2025".
Last August, MGM Resorts International announced that the company had formed a joint venture with Grupo Globo to enter the growing Brazilian market for sports betting and online gaming. The two giants, one from the casino sector and the other from the communications sector, will operate the BetMGM brand.
Announcing the JV, MGM Resorts CEO and Chairman Bill Hornbuckle said: “This historic alliance allows us to quickly enter the market with the scale and experience to establish an early position as a leading operator and provider of the best customer experience throughout Brazil”.
Now, invited to participate this Tuesday (24) at the 32nd Annual Leveraged Finance Conference of Deutsche Bank, Jonathan Halkyard, Chief Financial Officer of MGM Resorts International, gave a broad overview of the current situation of the company and projects in different international markets where it plans to start operations.
In a session moderated by Luis Chinchilla, from Deutsche Bank, Halkyard commented on the arrival of the brand in Brazil. “Grupo Globo is a very important media company in the country, and we have partnered with them to enter the Brazilian iGaming market”.
When asked about the characteristics of the agreement, he said: “This partnership is, in a way, the opposite of what we have with Entain for BetMGM. In the JV with Grupo Globo, MGM is providing the technology, and Grupo Globo brings customer acquisition from fan-owned brands, and so on”.
“It will be a competitive market, no doubt, but it will be huge. We think Grupo Globo is the perfect partner to introduce our product to customers in the country”.
Halkyard also differentiated the JV with the Brazilian media giant from other operations carried out by the company in recent times. “The investment will be very modest compared to any other deals we've made in the digital space or investments with BetMGM, such as LeoVegas or Push Gaming”.
And about the upcoming deadlines, he made it clear that the company is taking all steps to take advantage of the Brazilian market as soon as the new regulation comes into effect. “Everything is set up, we are recruiting the management team and we have filed our licenses expecting January 2025. Then, with our technology and the customer relationships with Grupo Globo, we will be ready to start operating.”
Source: GMB
