Why are Brazilian TV networks betting on online gambling ?

On February 17, 2025, the Silvio Santos Group, owner of the Brazilian TV network SBT, confirmed that it had paid a BRL 30 million (USD 5.25 million) concession fee to the federal government and will launch TQJ (Todos Querem Jogar), a sports betting and online casino platform in 2025.  This move follows similar strategic expansions by other major TV networks into the online betting industry. At the end of 2024, Globo announced a high-profile partnership with MGM Resorts to develop its own casino and sports betting app. More recently, in February 2025, Grupo Bandeirantes partnered with OpenBet to launch Bandbet, offering both sports betting and virtual casino games. These moves come amidst the regulation of the online betting market in Brazil, which officially came into effect in January 2025. Online gambling—which includes sports betting, virtual poker, and online casinos—has deep roots in Brazilian culture. A recent 2025 study by Banco Itaú, revealed that Brazil had more than 20 million active bettors in 2024. With traditional TV ad revenues declining and competition from digital platforms intensifying, TV networks see betting as a lucrative new revenue stream. But what is the strategy behind these media giants entering the betting industry, often under fire for ethical concerns? What are the expected synergies with their core businesses? TV Networks revenue are declining in Brazil After the pandemic, TV networks in Brazil saw a sharp decline in total revenues from USD  5.21 billion in 2019 to USD 3.49 billion projected in 2024, a drop of 33%.  This drop is driven by two main factors. First, a significant decline in Pay TV subscriptions, as consumers increasingly switch to OTT and streaming services. Consequently, Pay TV bundles have restructured their programming and closed several channels, with some networks shifting content to their own OTT platforms, like Disney+ and Warner Bros. Discovery. Globo itself in 2022, made some of its premium Pay TV channels available on Globoplay. Second, TV advertising revenues are shrinking as advertisers shift their budgets to digital and streaming platforms. Although TV ad revenues rebounded from 1.74 billion USD in 2020 to 2.04 billion USD in 2023, it suggests a plateau rather than a strong recovery.  FTA broadcasters are losing ad market share to digital platforms, though TV remains highly relevant. In Brazil, 50M households rely on FTA TV rely on FTA TV as their primary content source and  FTA channels capturing 84% of total TV viewership in 2023. AAs advertisers shift to digital, the four main networks—Globo, Record, SBT, and Bandeirantes—experienced substantial declines in TV ad revenue. Globo hasn't fully recovered post-pandemic, with its ad revenue share dropping from 69% in 2019 to 65% in 2023. Grupo Globo still leads in Total video revenues...