January 2026 marked one year since Brazil’s regulated sports betting and igaming market has been in operation. Data released by the country’s Ministry of Finance’s Prizes and Betting Secretariat (SPA) showed operators are expected to generate gross gambling revenue (GGR) of BRL37bn (£5.2bn) for 2025.
Despite only being operational for 12 months, the fledgling market has undergone significant changes. A new 15% tax on player deposits for operators is in the pipeline, as well as an increase of GGR tax from 12% to 15% over the next three year being tabled.
One of the affected operators will be BetMGM Brazil, which entered the market via a joint venture (JV) between MGM Resorts International and Grupo Globo last January – at the same time as COO Daniel Xavier joined the company.
Having been a part of Brazil’s legal market in its entirety during his time with the company, Xavier reflects on the regulator’s handling of its biggest issues when sitting down with EGR at ICE Barcelona.
Despite the immense competition in the market, especially with a lucrative World Cup tournament on the horizon, Xavier remains confident that BetMGM Brazil’s product is better than any other on offer.
EGR: How have you found your first year in the role?
Daniel Xavier (DX): It’s been really tough but really nice as well, but there’s still a lot to do. The group decided not to enter the grey market and instead waited for regulation to come in. I’ve been in the industry for 22 years, so I’ve been expecting this moment to come, and I’m really happy I get to help write the story with my colleagues. Regulation came at a good moment; companies have more confidence in making long-term investments, so scaling becomes much more predictable. It’s been amazing to be part of it.
EGR: How has the JV with Grupo Globo performed thus far? Has it met expectations?
DX: Yes. The combination allows for global expertise from MGM Resorts International, while Globo can impart a lot of knowledge regarding Brazilian culture and preferences. Both companies are looking at the long-term project, which is essential for such a competitive market. For year one, everyone is really excited about what we have achieved. The team is very good and is working hard to step things up.
EGR: How much of an advantage did the JV with Grupo Globo give you in the market?
DX: The most important part is that MGM Resorts controls the majority [of BetMGM Brazil]. They have such a profound and deep knowledge of entertainment, and we learn a lot from them. They are very good partners to have. They always try to push us to think about how we offer entertainment in an online environment. [Grupo] Globo are our media partners and, although they aren’t exclusive to BetMGM Brazil, they have very strong knowledge of Brazilian behaviour and preferences. We can count on Globo to support our business decisions.
Both companies also pay very close attention to responsible gaming and compliance. Both companies are interested in building something for the long term. We’re only in the first year of regulation and we have more than 100 websites fighting against each other. Which ones will survive? I think the ones with a long-term vision will have an advantage over those that don’t.
EGR: What is the company’s strategy for player retention in Brazil amid that intense competition?
DX: We believe it’s more important to provide your customers with a good experience so they keep playing with you, rather than fixating on having the highest number of FTDs (first-time depositors) in the market. We built a very strong engagement platform and a good product. Although we have a casino offering, our core system is proprietary, so we can customise it to provide what’s best for the player. We also keep up with what everyone does in terms of social media and TV advertising. More important than acquisition is what we are doing to keep players active on our platform.
If you’d asked me about the market 10 years ago, it would’ve been completely different. There were very few players, but since companies started entering the market in 2018, there’s been a boom. Many people, young people especially, who wouldn’t normally engage with igaming products, have started to play.
EGR: How big of an impact do you anticipate the eventual 15% tax on player deposits having?
DX: It will impact us, but at least we’re able to prepare ourselves for the changes to come. More important than that, in my opinion, is we need to fight back against the illegal market during the second year of regulation. If you just increase taxation while the black market still exists, people end up migrating to illegal operators. That’s the biggest battle the industry faces in the next year and years to come.
Nobody wants higher taxes, but regulation is important for players. They have more protection and play in a safer environment. The government can have their income on taxes – around €1.5bn of tax was paid last year, so it’s huge. We are creating good jobs so everybody wins, especially the player who has access to a fair and more protected environment.
EGR: What changes do you think the regulator should look to make to combat the black market?
DX: It’s very clear what the demands are for legal operators in the market. From the player’s perspective, a legal website has to have a .bet.br domain, and the operators are on Google Play at the moment and hopefully on the App Store in the near future. If you don’t have these elements, you’re a black market operator. There’s continuous work from the regulator to try and restrict these unregulated domains.
Also, the regulator needs to stop the flow of money to these sites. I know they’re working on a partnership with the banks to try and root out these illegal sites earlier. The regulator is working on these things, it’s just that it’s been the first year of operations. So many domains have been blocked – from what I’ve heard it’s been more than 10,000. Everyone, from the regulator to the operators to the banking system needs to work together to try and stop these illegal sites.
EGR: The GGR tax rate is due to rise from 12% to 15% by 2028. Is there a point where the company would have to reconsider its position in the market?
DX: For the moment, 15% is workable. More than that, maybe. We’ve seen complaints in other markets that went down a similar road. In the Netherlands for example, they had a much larger legal market, but when the government increased the tax, they reduced income from operators because more people were playing with illegal sites. We pay other taxes in Brazil, so our overall level of taxation is much higher than 15%. I think we are reaching a limit, but the government has established a level that everyone agrees with after several months of painful discussions.
EGR: How is the company preparing for the World Cup this summer?
DX: We’ve launched a completely renewed sportsbook platform. MGM Resorts acquired Tipico’s US platform a few years ago and we’ve added that to BetMGM Brazil. We have a brand new, proprietary sportsbook product. That’s important because when you talk about sportsbook products, everyone looks the same and it’s very difficult to create differentiation. We believe we have done that and the product itself is very good. That’s key for the World Cup. Players know we are reaching a new level of quality in the market.
We will also run special activations in stadiums, have special TV campaigns planned and have a very strong VIP programme to promote engagement and retention.
EGR: MGM Resorts CEO Bill Hornbuckle said it was possible for the company to reach a 10% market share in Brazil. How realistic of a target do you think this is?
DX: I feel so happy because he really believes in us. I do believe we have the right conditions to have 10% of the market. Of course it won’t be overnight, but we’re working long term to reach that goal by offering the best product.
We’re not the ones spending more than competitors in the market and we never will be. We have very good engagement which boosts retention. It might take five, six or seven years, but I do believe 10% is achievable.
The post BetMGM Brazil COO on how snaring a 10% slice of the market “is achievable” first appeared on EGR Intel.
Daniel Xavier speaks to EGR about the first year of the regulated Brazil arena, how proprietary tech is a gamechanger and why collaboration is key in the fight against the black market
The post BetMGM Brazil COO on how snaring a 10% slice of the market “is achievable” first appeared on EGR Intel.