Breaking News: Brazil Issues 71 Gambling Licenses
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21 Dec 2024 •
Reading time: 2 minutes Brazil has approved a whopping 71 gambling licenses, meaning the regulated gambling market will open its doors on January 1, 2025. During a meeting on December 10, Regis Dudena, the head of Brazil’s gambling regulator SPA, confirmed that these licenses have been awarded. He said that the companies that have been granted a license have already been informed and must meet the final requirements before they can go live.
Companies have 30 days to get everything in order
The companies must take a number of important steps in the next 30 days. It’s not just about technical matters such as the certification of their systems. They must also meet financial obligations, such as paying a concession fee of 30 million Brazilian real.
So far, 16 companies have already paid. This has earned the Brazilian government 480 million real. And yes, those license fees are adding up nicely.
Big players are eager
Big gambling companies such as Sportingbet and Caesars Sportsbook’s Big Brazil have applied for a license. The race for a place in the market is fierce, and for good reason. Analysts think that Flutter Entertainment, a giant in the gambling world, could dominate the Brazilian market.
Their market share could grow from 10% to 25% within five years. Rob Coldrake, Flutter’s CFO, called Brazil “a market full of opportunities” and said they can’t wait to get started.
Why some companies are pulling out
Not everyone is so enthusiastic. Betway, a well-known name in the gambling world, has pulled out. Richard Hasson, a CEO of parent company Super Group, explained why: “We only want to invest in markets where we know we can make a profit.”
Other companies, such as Arena Esportiva and Vera&John, have made the same choice. It shows that the Brazilian market, while exciting, is not for everyone.
Vote on land-based casinos postponed again
While the online gambling market is in full swing, the debate over land-based casinos continues to linger. A bill to legalize land-based casinos, bingo and horse racing continues to be delayed.
A planned vote on December 4 was canceled again. Senator Irajá Silvestre, who is backing the bill, hopes a breakthrough will finally come next year.