# Exclusive: Globo and MGM Invested R$508 Million in BetMGM Before Brazil’s Betting Ban *The Globo-MGM joint venture handled R$5.1 billion in wagers but posted a R$330 million loss in its first year of operations.* - Published: 2026-10-23 - Section: Insights - URL: https://brazilstockguide.com/insights/globo-mgm-betmgm-brazil-investment-loss-betting-ban/ ![](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2026/10/Logo-de-Leao-Dourado-BET-MGM.png?fit=1672%2C941&ssl=1) **By Brazil Stock Guide —** Brazilian media giant Globo and U.S. casino operator MGM Resorts poured hundreds of millions of reais into their online betting venture before a sweeping regulatory shift upended the industry. Boa Lion S.A., the company behind BetMGM’s Brazilian operations, received successive capital injections that brought its total paid-in capital to R$508 million ($94 million) by May 2026. The business failed to turn a profit in its first full year of commercial operations. In 2025, BetMGM Brazil reported a net loss of R$329.7 million ($61 million), according to financial statements audited by Deloitte and published in August. BetMGM Brazil operates through Boa Lion S.A., a joint venture controlled by LV Amazonas Holding AB, a Swedish-registered company within the international corporate structure of MGM Resorts International. The U.S. casino group is headquartered in Las Vegas, Nevada, and incorporated in Delaware. Through the holding company, MGM owns 50.01% of the Brazilian business, while Organizações Globo Participações S.A. directly holds the remaining 49.99%, representing approximately R$254.2 million in paid-in capital. ## Betting Ban Clouds Investment Outlook The growth strategy of Brazil’s betting operators faced a fundamental setback on September 25, 2026, when the federal government issued Provisional Measure No. 1,394, banning the operation, offering, intermediation and advertising of fixed-odds betting nationwide. The ban covers both sports betting and online casino games and required operators to take their platforms offline beginning October 6, shortly after the first round of Brazil’s presidential election. The measure, which remains subject to congressional approval, also provides for the formal termination of operating licenses on October 25, without reimbursement of licensing fees or compensation from the government. BetMGM had paid R$30 million for a license originally valid for five years. The regulatory reversal raises questions about the fate of the capital committed by Globo and MGM, the accounting treatment of their assets, outstanding contractual obligations and the future of businesses acquired or developed by the joint venture. BetMGM launched its Brazilian operations on January 9, 2025, offering sports betting, online casino games, live-dealer casino games and bingo. During its first year, customers placed R$5.115 billion in wagers, of which R$4.877 billion was returned as winnings. After deducting R$35.2 million in bonuses, gross gaming revenue (GGR) reached R$203 million. Following additional adjustments and taxes, reported net revenue stood at R$144.1 million. Commercial spending was the main drag on profitability. BetMGM recorded R$314.4 million in advertising expenses, equivalent to 218% of net revenue. Its operating loss reached R$339 million, partly offset by a positive financial result of R$9.3 million. ## Transactions With Globo-Affiliated Companies The financial statements also shed light on the extent of business conducted between BetMGM and companies affiliated with its shareholders. In 2025, related-party transactions recognized in the income statement totaled R$71.5 million, including R$39.9 million involving Globo and affiliated companies. Of that amount, R$26.9 million was recorded with Globo itself, R$11.3 million with outdoor advertising company Eletromídia, R$1.05 million with Publibanca Brasil, R$572,000 with Editora Globo and R$108,000 with Rádio Globo. Among other related parties, Gears of Leo accounted for R$27.7 million, while gaming technology provider Push Gaming represented R$3.9 million. According to the accompanying notes, these transactions covered media agreements, advertising purchases, software licensing, platform usage, service arrangements and expense reimbursements. The statements do not specify how much of the R$314.4 million in advertising expenditure was directed to Globo-affiliated businesses. Deloitte drew particular attention to the company’s significant related-party transactions in its audit report, although it issued an unqualified opinion on the financial statements. ## Shareholder Capital Kept Operations Afloat BetMGM’s 2025 loss virtually wiped out the capital accumulated by the business up to that point. At year-end, the company had just R$4.1 million in shareholders’ equity, despite receiving R$240 million in fresh capital during the year. Accumulated losses since its incorporation in February 2024 had reached R$344.4 million. The company also ended 2025 with negative working capital of R$35.6 million and an operating cash outflow of R$259.2 million, highlighting the financial demands of its expansion strategy. In the notes to the financial statements, management acknowledged the negative working capital position but said that, on its own, it did not threaten the company’s ability to continue operating at the time. Management cited an agreement established between the shareholders when the venture was formed, providing for additional capital contributions to fund operations and support the business’s development. That financial backing continued into 2026. BetMGM received R$60 million in January, another R$60 million in March and R$40 million in May. The additional R$160 million brought total paid-in capital to R$508.45 million. ## Acquisition of Company Linked to Brazilian TV Star Luciano Huck Despite the losses recorded in 2025, BetMGM continued pursuing expansion opportunities in Brazil. On May 6, 2026, Boa Lion signed a binding proposal to acquire Bingão do Brasil S.A., a developer of online video bingo games whose investors included a holding company linked to Luciano Huck, one of Brazil’s best-known television presenters. The transaction received unconditional approval from Brazil’s antitrust regulator, Cade, in June. The purchase price was not disclosed. The acquisition formed part of BetMGM’s diversification strategy, aimed at strengthening its position in online gaming beyond traditional sports betting. The financial statements also disclose a six-year agreement with a brand ambassador who serves as a special adviser to the company’s board of directors. Under the contract, the ambassador is entitled to additional performance-based compensation of R$42.5 million, conditional on the business reaching operational break-even, as defined in the agreement. Globo did not immediately respond to a request for comment. *Brazil Stock Guide* remains open to the company’s response. --- Source: Brazil Stock Guide, https://brazilstockguide.com/insights/globo-mgm-betmgm-brazil-investment-loss-betting-ban/