BetMGM off to a “terrific” start in Brazil despite losses widening on marketing spend

MGM Resorts International COO Corey Sanders has heaped praise on the “terrific” start made by its digital division in the recently regulated Brazilian market. 

During Q1 2025, MGM Digital, which does not include BetMGM, the US- and Ontario-facing joint venture (JV) with Entain, expanded its reach and established operations in Brazil and made “great progress”, according to CEO Bill Hornbuckle. 

The company has secured a licence in the market, that launched on 1 January 2025, via a JV with Brazilian media giant Grupo Globo, as confirmed last August. 

Speaking on the earnings call following the release of MGM’s Q1 results, Hornbuckle shed light on how the company’s digital arm, which does consist of its LeoVegas subsidiary, has fared in the opening exchanges of Brazil’s regulated market. 

“In Brazil, we have seen evidence of early traction with healthy retention rates,” he explained. “Also, having a fantastic media partner like Grupo Globo has provided flexibility in marketing, allowing us to be very deliberate on entry. 

“We are focused on executing our marketing plan throughout the second quarter as this business continues to ramp up, and we’re excited to launch our live dealer platform from the MGM brand later in May.” 

Ahead of a step up in MGM’s Brazil-based marketing efforts, COO Sanders echoed a similar sentiment to Hornbuckle regarding the region.

He added: “Things are starting off terrific in Brazil, we’ve been live since Q1. In terms of the pacing of investment, we believe that the first half of this year bleeding over a little bit into Q3 is the core of our marketing deployment. 

“We probably got off to a little bit of a slower start than we anticipated, so that may shift out by a month or so, but principally, the real marketing dig against the business will occur over the next six months, then we’ll see those investments begin to tether. That’s the current plan.”  

Analysing MGM Digital’s Q1 display, net revenue remained flat against last year’s results, with $128m (£96m) generated in both reporting periods.

Adjusted EBITDAR plummeted by 83% year on year (YoY), with the operator’s digital segment posting losses of $34.4m, sparking a significant fall in the group’s corresponding margin, which sat at 26.9%, down from Q1 2024’s 14.7%. 

The company also detailed its market share targets for MGM Digital efforts in Brazil and Europe. 

By 2029, as per H2 Gambling Capital global estimates, total addressable market (TAM) for digital will be valued at $41bn, with $34bn derived from Europe while the remaining $7bn stems from Brazil. 

The company has noted it is targeting market share of 1% to 5% in Europe, alongside a more substantial 10% or more in Brazil. 

Hornbuckle discussed the size of the opportunity presented by the Brazil market back in March, while appearing on a JP Morgan Gaming, Lodging, Restaurant and Leisure Management Access Q&A. 

“Brazil is the push. Brazil is really where it’s all going to be about. We think initially it’s an $8bn market,” the chief executive noted at the time. “We have an amazing partner in Globo. 

“We think we’ve found something very specific and special to us in Globo because of the way they sign up people for movie subscriptions and anything else in all their other products.

“We think there’s leverage off that database and off those people, which I think ultimately will uniquely position us to really excel there because if you’re not online already, it’s laborious.” 

Meanwhile, MGM Resorts’ online casino and sports betting arm BetMGM posted $657m in revenue, representing a 34% YoY increase. 

Hornbuckle claimed that the “spotlight shone brightest” on BetMGM out of all MGM segments this quarter. 

Group wide, the company reported net revenue of $4.3bn for the three months ending 31 March, marking a marginal 2% decline from the same period last year. 

There was also a slip in MGM’s adjusted EBITDA, which fell from $673m in Q1 2024 to $637m this time around. 

The post BetMGM off to a “terrific” start in Brazil despite losses widening on marketing spend first appeared on EGR Intel.

 Parent company’s COO Corey Sanders insists all is as planned in South American market, but digital arm sees flat revenue and adjusted EBITDAR fall 83% since last year
The post BetMGM off to a “terrific” start in Brazil despite losses widening on marketing spend first appeared on EGR Intel.