In a meeting yesterday (12 December), Regis Dudena, secretariat of prizes and bets in Brazil, confirmed 71 licences are approved. The SPA is still evaluating the remainder of the 114 applications filed by the initial 20 August deadline.
Dudena did not disclose the identity of any of the successful applicants. However, he did say that all operators in this group have been contacted for final evaluation ahead the market’s launch. Brazil is due to open its regulated market on 1 January 2025, with compliance prior to this required before an operator can launch.
“The final requirements here, in addition to some technical requirements such as certification of their betting system, are mostly related to financial matter, such as full capital, creation of a reserve account and payment of a concession fee,” Dudena said.
“So, 71 companies have already been notified by the Ministry of Finance. They have 30 days from the date of notification to comply with these final requirements.”
Dudena went on to reveal that 16 of the successful first batch of applicants have already paid their concession fees. To date, the Ministry of Finance has received a total of R$480 million (£63.3 million/€76.4 million/US$80.0 million) in fees. Each licensee is obliged to pay a R$30 million concession fee.
Who is up for a licence in Brazil?
The 90-day initial window of preference for licences opened in May and drew great interest from operators. The process ran past the initial deadline and, by early November, over 270 companies had applied for a licence.
Those who applied after the deadline will almost certainly not have their licence in place for opening day. The regulator previously stated it would prioritise those from the first period of application to guarantee they can go live on 1 January.
Among the operators confirming they have applied for a licence are Sportingbet, Caesars Sportsbook’s Big Brazil, Superbet and Rei do Pitaco. Kaizen Gaming-owned Betano became the first to apply on 26 May, just days after the window opened.
Analysts believe it is Flutter Entertainment that will take an early lead in Brazil. This week, Macquarie said the NYSE-listed group could grow its online market share in Brazil by 150% in five years, from 10% to 25%.
Rob Coldrake, chief financial officer of Flutter, talked up the group’s chances in Brazil during a post-Q3 earnings all. He said: “We’re excited to take advantage of what we think is a really exciting market with a lot of opportunity.”
Early drop-outs from licensing race
However, last month it was revealed that several operators had dropped out of the process before their application was processed. Super Group’s Betway is among the highest profile names on the list of withdrawals.
Speaking about the decision, Super Group president and chief commercial officer Richard Hasson said the operator would focus on markets where it could see a way to generate returns following its launch.
“Brazil is obviously being spoken about a lot across the industry at the moment,” Hasson said. “That’s a market where we are not currently proceeding in line with all markets that we look at. We want to ensure that we can identify the same path to profitability once we go live.”
Arena Esportiva, AmuletoBet and Vera&John, currently owned by Bally’s Corporation, have also dropped out of the race.
Land-based casino vote again
On the subject of not progressing, the Brazil senate has again delayed a planned vote on a bill to legalise land-based casinos, bingo halls and betting on horse racing in the country.
Bill 2,234/2022 was approved back in June by the Chamber of Deputies’ Constitution and Justice and Citizenship Commission (CCJC). However, the bill has suffered several setbacks.
An August vote date was missed while hopes for an October vote were also dashed. Irajá Silvestre, the senator behind the bill, last month said he hoped a vote would take place before the end of 2024.
Another vote was set for 4 December but did not take place. Senators debated the proposal, but Silvestre withdrew the bill. Senate president Rodrigo Pacheco said the bill will instead be put to a vote next year.
Original article: https://igamingbusiness.com/legal-compliance/brazil-approves-71-betting-licences/
