BetMGM Resorts International interactive president Gary Fritz has said the operator will continue to invest heavily in Brazil, as BetMGM Digital’s division begins to break even.
Fritz’s comments came after the operator announced a 14% year-on-year (YoY) increase in Q2 revenue to $164m (£123m), which he attributed to brand expansion.
During the quarter, MGM Digital, which includes LeoVegas Group and BetMGM, but not the BetMGM US- and Ontario-facing joint venture with Entain, also reported segment adjusted EBITDAR was a loss of $26m, compared to a loss of $14m a year priot.
In its earnings release, MGM Resorts International said the digital division “is on target to become profitable in the coming years” and targeted market share of 1% to 5% in Europe and north of 10% in Brazil.
When asked during the operator’s post-Q2 earnings call about investment in Brazil and other markets, Fritz responded by saying that most of the growth in its portfolio is coming from Brazil – where BetMGM has a JV with media giant Grupo Global – and that investment efforts will continue in that market.
Fritz said: “As Jonathan [Halkyard, CFO of MGM Resorts International,] said in the prepared remarks, and I’d underscore it that in the absence of the investments we’re making in Brazil, we’re beginning to break even in the rest of the MGM Digital portfolio.
“We are seeing growth in our core LeoVegas business, but the bulk of the growth is coming from the BetMGM-branded business internationally which we’ve invested over the course of the past one-and-a-half years.
“We are definitely seeing returns from that and don’t see anything between now and the end of the year that would suggest that those trends would be interrupted. We will continue to operate with that level of profitability.
“The investment is concentrated in Brazil and we really took flight with respect to our investments in Brazil in Q2.”
Commenting further on the firm’s operations in Brazil, Fritz added that MGM Digital changed its marketing strategy from Q1 to Q2 and “we’re very happy with what we’re seeing”.
With the operator’s earning presentation highlighted addressable TAM of $7bn in Brazil, Fritz said he was optimistic about the future of BetMGM in the market.
He said: “Player values are strong down there. We see nothing to give us any concern about the TAM and the long-term health in the market in Brazil.
“Our relationship with Globo couldn’t be better, and that relationship affords us a tremendous amount of operating flexibility that our competitors do not have.
“We can have access to inventory very quickly. We can make decisions about changing marketing mix very quickly because of our relationship with Globo.
“So that [deal] will continue through the end of the year. But we’ll reiterate again this year in 2025, total performance on the bottom line in MGM Digital should mimic what it looked like last year and we’ll move into 2026 optimistically.”
For the six months ending 30 June 2025, MGM Digital posted revenue of $292m, an increase of the $271m figure reported 12 months ago.
However, segment adjusted EBITDAR was a loss of $60m, compared to a loss of $33m for the six months ending June 30, 2024.
Meanwhile, MGM Resorts’ BetMGM JV with Entain in the US and Ontario reported Q2 net revenue of $692m.
The post MGM Digital will continue to invest heavily in Brazil, says interactive president first appeared on EGR Intel.
Gary Fritz notes the parent company of LeoVegas Group is beginning to break even if excluding the Brazil investment, with Q2 revenue up 14% YoY to $164m
The post MGM Digital will continue to invest heavily in Brazil, says interactive president first appeared on EGR Intel.