Brazilian sports betting attracts attention from 134 potential operators
Brazil’s Sports Betting Market may surprise other markets. So far, 134 companies have expressed interest in becoming part of the country’s gaming industry.
On October 27, Brazil’s Ministry of Finance introduced a measure setting out general conditions for sports betting in the country. The initiative requires companies interested in obtaining a license to submit a prior expression of interest within 30 days of the announcement.
So far, 134 companies have filled out the forms required to operate sportsbooks and forwarded their submissions to the Treasury Department after the original deadline. Expressions of interest are non-binding, meaning not all companies will receive permission.
Of the submissions, 52 expressions of interest were submitted to the Treasury almost immediately. They were part of a group that submitted documents just days after the measure was released and the sports betting law was approved by the Senate Committee on Economic Affairs (CAE, for its Portuguese abbreviation).
A further 82 were submitted following CAE approval, bringing the total to 134. For comparison: There are 40 licensed sports betting providers in the United States, with a market capitalization of approximately $83 billion.
What's next?
The five-year license is expected to cost R$30 million ($6 million), with royalties alone generating nearly R$4 billion ($813 million) in revenue for the government. This is in addition to taxes and the financial benefits it will receive.
However, not all applicants will receive a license. Due to ongoing delays in Senate approval of the bill, the official permitting process has not yet begun. Once the Senate and House of Representatives approve the final version of the regulations, licensing review begins.
Even so, there are still some hurdles to overcome. Under current law, operators must have a permanent establishment in Brazil. You may also want to find local people to partner with. At least some of the 134 interested companies are unlikely to meet these and other requirements.
iGaming, casino discussions still ongoing
While awaiting a vote on the sports betting bill in the Senate, another betting bill, Bill 2234/2022, is being debated. It touches on everything including resort casinos, bingo rooms and online gambling.
The bill was due to be discussed last Wednesday at the Senate Committee on Constitution, Justice and Citizenship (CCJ, for its Portuguese abbreviation). As with the sports betting law, the session ended before senators could get to the subject.
Although the bill was first approved by the House of Representatives in 2018, it has faced delays in the Senate since February 2022. CCJ Chairman, Senator Davi Alcolumbre, said he intends to organize a special session this week to address pending agenda items, including Bill 2234/2022.
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Source: www.casino.org
