MGM Resorts International CEO: No more M&A for LeoVegas Group

MGM Resorts International CEO Bill Hornbuckle has said M&A is not on the agenda for the operator’s LeoVegas Group arm in the future as he talked up the opportunity in Brazil.

Speaking on an analyst call following the Las Vegas-based firm’s Q3 earnings release, the exec said that the MGM-owned brand was in a very solid position after a recent M&A flurry.

MGM Resorts International acquired LeoVegas Group in May 2022 for $607m to give the operator online international exposure.

The parent company then sanctioned further deals to snap up supplier Push Gaming that same year and the added Tipico’s US sportsbook and casino platform this summer.

MGM Resorts International also penned a partnership with Playtech to launch a collaborative live casino product that was rolled out across its brands.

However, Hornbuckle claimed that the era of spending was coming to a close as he hinted that 2025 and beyond would be time for making good on the foundations laid so far.

LeoVegas Group runs the international BetMGM brand in the UK, Netherlands and Sweden, while a joint venture (JV) with Brazilian media giant Grupo Globo will bring the platform to the market too.

Hornbuckle said: “We don’t anticipate any more acquisitions as relates to MGM International Digital as we call it in-house, which is the LeoVegas arm.

“We have three markets under launch right now in the UK, Netherlands and soon to be Brazil. I think by the late part of next year all of that will manifest itself. 

“Unless there’s something else that breaks of scale, I think as we come out at 2025, we’re going to be some something substantial across the board leading into 2026.”

Regarding the Brazil opportunity, Hornbuckle was bullish on the role Globo would play in the partnership, with the business having an extensive reach across the country.

A local team is being built out to run the JV out of São Paulo, with LeoVegas being named on the approved operator list by the Brazilian government ahead of the regulated market’s launch in January.

The CEO continued: “This is not a standard sponsorship deal. This is truly an equity deal. They’ve put in advertising dollars for equity. And so, the expense of that, while meaningful to all of us, will be part of what [Globo] do. We provide the technology, they provide the media platform.

“We’re going to launch in a new country and so that [investment] will be in the tens of millions over the course of the year. Time will tell where we ultimately end up. There’s probably going to be a lot of competition. There’s already many, many folks who have operated inside the grey market.

“We love Globo as a partner and its scale that literally controls about 80% of the eyeballs in Brazil. And we think our product offering is going to substantive and meaningful.”

MGM Resorts International’s earnings report did not provide a breakdown for online operations, although it did note its North America BetMGM JV saw revenue spike 20% year on year.

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