Brazilian licence window closes with 113 operator applications
Regulated sports betting and igaming market to launch in January as local heroes and international giants gear up to tackle TAM worth more than $3bn
The Brazilian government has confirmed 113 operators have applied for a sports betting and igaming licence as the application window officially closed yesterday, 20 August.
The swell of interest in the newly regulated market culminated in a last-minute rush for applications, with 54 companies applying on the final day.
The last push came after 15 operators also submitted their interest to the government on 19 August.
Brazil’s regulated sports betting and igaming market will officially open on 1 January 2025 after the South American country’s Ministry of Finance finetuned the framework during the summer.
The Ministry will also house the new Brazilian regulator, the SPA, which has overseen the licence application process via its SIGAP portal.
Licences cost BRL30m (£4.3m) and will last for five years. Each licence also allows successful applicants to launch three ‘skins’ in the market.
In theory, should all 113 operators be approved, the regulated Brazilian market could potentially be flooded with 339 brands.
However, this could be unlikely to happen, given the fact, for example, Entain only runs its Sportingbet brand, and has yet to make any indication it would launch sister sites.
The first operator to apply for a licence was Betano parent company Kaizen Gaming on 26 May, with the firm holding a definitive gold medal position according to various sources.
Romanian operator Superbet followed on 11 July, with DFS operator Rei do Pitaco submitting on 19 July.
Sportingbet’s licence application came a few days later on 25 July as Entain remains committed to Brazil after turning the ship around in recent months.
Other international operators to have applied include bet365, Flutter, Betway, Betsson, Stake, Novibet and 1xBet.
Local firms including Aposta Ganha, Esportes da Sorte and Betnacional have also been joined by US interest in the shape of Caesars Entertainment.
Betnacional has reportedly been identified as an M&A target by Flutter as a means to secure a leading position in the market by snapping up a local hero.
Flutter currently runs its Betfair and PokerStars brands in Brazil.
Additionally, MGM Resorts International revealed last week it had secured a deal with Brazilian media giant Grupo Globo to bring its BetMGM brand to market.
The “landmark” partnership will see a BetMGM Brazil JV be based out of São Paulo and run off LeoVegas Group technology.
To that end, LeoVegas Group applied for a licence on 16 August under the company name Boa Lion.
MGM Resorts International has claimed Brazil has more than 20 million active bettors with an estimated market size of more than $3bn.
Posting on LinkedIn, former VaiDeBob managing director Thomas Carvalhaes wrote: “We might have been frowned upon, ridiculed, doubted, questioned, scrutinised and lastly given up on by many international powers but, we never gave up.
“I can gladly think of the numerous panel discussions with other fellow Brazilian igaming colleagues where we strongly stood our ground and spoke of the fortress that a Brazilian regulated market would become.
“This is a Brazil day, not to exclude anyone, but this is an exclusively proud moment to all of us: Brazilian igaming, gaming, lottery, sports betting professionals – we made it.”