Las Vegas casino giants MGM and Caesars are setting their sights on Brazil, having already invested $16 million in the country’s burgeoning online betting sector. The companies, along with Hard Rock, are positioning themselves to expand beyond virtual gambling, with an eye toward building casinos in popular tourist destinations should Brazil regulate land-based gambling.
MGM Resorts has poured R$54.25 million ($10 million) into BetMGM, a joint venture with Grupo Globo, while Caesars Palace has obtained a license from Loterj to operate in Rio de Janeiro and is constructing new headquarters in Americana, São Paulo.
These moves mark a broader strategy for Las Vegas casinos to test Brazil’s market dynamics and build brand recognition. As one of the few countries to legalize online betting before regulating land-based gambling, Brazil offers an attractive opportunity for expansion.
MGM Resorts CEO Bill Hornbuckle said the company plans to bring the “authentic Las Vegas betting experience to Brazil,” as the operator prepares to capitalize on the country’s shifting regulatory landscape. It has already invested R$54.25 million ($10 million) in launching the BetMGM brand with Grupo Globo.
André Feldman, president of Caesars Sportsbook Brazil, echoed this sentiment. “For us, physical gambling, if it is regulated in Brazil, is a natural path we will pursue to apply for a license as well,” Feldman said. Caesars is currently expanding its operations in São Paulo and has already hired 28 employees, with plans to increase the workforce to 100.
Brazil’s Congress is debating a bill that could regulate “jogo do bicho”, horse racing, and casinos. Senate Bill No. 2,234 of 2022, an amendment of legislation passed in 2022 by the House of Representatives, would provide a framework for land-based casinos.
The proposal allows for up to three casino resorts in states with large populations, such as São Paulo, and up to two casinos in states with extensive territories, like Amazonas, or with populations between 15 and 25 million, such as Minas Gerais. Other states and the Federal District would be permitted only one casino resort each.
As Brazil moves toward a potential regulation of physical casinos, companies are preparing for the next steps. Hard Rock Cafe’s Vice President for Latin America, Alex Pariente, noted the importance of the Brazilian market, which already contributes significantly to the company’s tourism revenue. “It would be gratifying to bring our brand into this sector when the opportunity arises,” Pariente said.
If the law passes, the impact on Brazil’s economy could be substantial. Carlos Henrique Sobral, National Secretary of Infrastructure, Credit, and Investments at the Ministry of Tourism, projected the casino industry could generate over 650,000 jobs and R$74 billion ($13.6 billion) in revenue. Tourism’s contribution to GDP could rise from 8% to 9.2%, he added.
However, concerns about gambling addiction and financial harm have been raised. Psychiatrist Rodrigo Machado warned about the addictive potential of slot machines, which stimulate the brain’s pleasure pathways more intensely than lottery games. Opposition to the bill in the Senate is led by Senator Eduardo Girão, along with evangelical groups, who have highlighted the social risks of expanded gambling.
Despite these concerns, the bill enjoys support from key figures across Brazil’s political spectrum, including some members of both the Workers’ Party and the far-right Liberal Party. If passed, the legislation would allow casino resorts to operate for 30 years, with the possibility of renewal.
MGM Resorts, founded in 1986, currently boasts a market value of $11.65 billion. Caesars Entertainment, which has been in operation since 1937, has a market value of $9.05 billion. Hard Rock Cafe, founded in 1971, is privately owned by the Seminole Tribe of Florida.
Original article: https://www.yogonet.com/international/noticias/2024/10/01/80482-las-vegas-casinos-eye-brazil-for-expansion-betting-on-online-and-potential-landbased-markets
