MGM Resorts to explore Brazilian JV as well as in-house tech acquisition, says CEO
Bill Hornbuckle reveals plans to expand internationally with potential live casino also on the horizon as Entain move off the table
MGM Resorts CEO Bill Hornbuckle has suggested the operator will look to launch a joint venture operation in Brazil ahead of the online regulated market going live.
Speaking on an analyst call following the firm’s Q4 report, the CEO and president confirmed he was set to visit South America in the coming weeks to explore an undisclosed opportunity.
Hornbuckle said: “I’m heading down to South America to look at a large JV. Brazil is going to put internet gaming in play for both casino and sports betting, and we plan to be there when that launches. We’re focused on building that business at its core into a real business.”
MGM Resorts, which already runs a JV in the US in the shape of BetMGM with Entain, expanded internationally last year with the launch of BetMGM in the UK.
That launch, which was facilitated by the group’s LeoVegas subsidiary, could also be replicated in other geographies, according to Hornbuckle.
On the BetMGM UK venture, which is unconnected to Entain and powered by Kambi, the CEO championed the early success of the brand.
He said: “We’ve got well over 100,000 first-time depositors already. We’re looking at another country already to do the same thing. So, we are going to grow the business and ultimately, if we acquire something else, time will tell, but for now staying focused on that is paramount.”
Analysts also pressed Hornbuckle on further M&A activity after acquiring LeoVegas for around $600m in 2022.
Rumors have long swirled on another bid for JV partner Entain after an £8.09bn bid was rejected in January 2021.
Entain’s market cap, at the time of writing, now stands at £5.95bn, with the company’s share price having slipped almost 30% in the past 12 months.
Hornbuckle was not drawn on a potential bid for Entain in his comments, but did reveal that plans to expand its tech and casino capabilities were in the offing.
He said: “I was at ICE last week, I met with Stella [David, Entain interim CEO]. We’re still very focused on making sure everyone’s focus is on BetMGM. This is a critical year, I think, for all of us. It’s about product, product, product and focus.
“We contemplated four key pillars into setting up our own shop. We bought LeoVegas with that in mind. We’ve now gone and bought Push Gaming, which is a content studio.
“We are on the heels of buying sports technology. We want to be in our own sports betting business with our own technology.
“We are on the heels of a deal for live dealer where we’ve talked about, and had a vision of, broadcasting live games from Las Vegas to the rest of the world with some celebrities and entertainment tied into them,” the CEO added.
Last week, BetMGM reported a 36% year-on-year (YOY) leap in full-year 2023 revenue to $1.96bn.
At a group level, MGM reported Q4 revenue of $4.4bn across its Las Vegas, Chinese, and regional operations.
Operating income landed at $419m compared to a $2m loss in Q4 2022, while consolidated adjusted EBITDAR amounted to $1.2bn.