Betway announces Brazil departure two months before regulated market launch
Operator was initially among the country’s list of approved companies eligible to offer services to Brazilian players until the end of the year
Betway has announced its exit from Brazil, two months before the country is set to launch its regulated market on 1 January 2025, as reported by local media.
The Super Group-owned brand had initially been approved by Brazil’s Ministry of Finance to continue operations in the country until 31 December 2024.
The Ministry of Finance would then go on to process full licence applications for the regulated market, with Betway having been one of the operators seeking a licence.
The regulator confirmed its approved list of operators at the start of October.
Betway has now told customers its operations will cease on 13 December and it will look to return any outstanding balances to players.
Players were informed of the company’s decision to leave via a notice displayed when they went to access the platform.
The notice read: “Dear Betway customers, regrettably, we have decided that we will not continue to acquire the regulated licence offered in the country (Brazil). We will work with you to return any outstanding balances.”
Several other operators have also withdrawn from the application process for a Brazilian market licence, including Bally’s Corporation-owned Vera & John, Dafabet, Arena Esportiva and AmuletoBet.
Brazil’s Ministry of Finance had already begun the process of removing unlicensed operators from the market, requesting the blocking of more than 2,000 domains by the country’s National Telecommunications Agency.
Speaking to EGR, Super Group CEO Neal Menashe and chief financial officer (CFO) Alinda Van Wyk recently revealed there thoughts on the Brazilian market, prior to news of Betway’s exit being formally released.
Asked for the reasoning behind the reluctance to make a big push in Brazil, Van Wyk explained: “It’s even more complicated with the regulations but also trying to get money out.
“The banking infrastructure in South America is challenging to say the least. There is also a massive risk on currency. Trying to get money out if you make a profit is quite complicated.”
Menashe added: “Betano said they were spending significant sums on marketing, BetMGM are going to spend in a similar fashion, Flutter has bought a business and put more money into it. Let them go and do their thing. We learned our lesson from America.”
Betway’s departure from the South American country follows on from Super Group pulling out of the US sports betting market, a move which the company announced back in July.
Earlier this week, Super Group announced record revenue of €402.9m (£335.6m) for Q3 2024, which the company attributed to strong growth in the African market.