The new rules for the operation of online betting in Brazil are imposing significant barriers for companies interested in entering this market.
With a tight deadline for registration, just over 20 companies are in the licensing process with the Ministry of Treasury, while another 40 must formalize their applications by August 20, 2024, the deadline established for those who wish to operate from January 2025.
The initial list of interested parties totaled 134 companies. However, high investment requirements, such as substantial minimum capital and the need for statutory directors, halved the number of participants.
According to Rodrigo Del Mônaco, a specialist at BTG Pactual, “it is not possible to enter just to test the market”, highlighting the seriousness and financial commitment required.
R$30 million license for online betting operations in Brazil
To operate legally, companies must pay a license fee of R$30 million to the Ministry of Treasury.
This value, which also becomes the company’s paid-in share capital and net equity, guarantees the right to operate for five years and explore up to three brands. In addition, it is necessary to maintain a financial reserve of R$5 million to cover possible problems related to betting.
Another crucial requirement is the presence of a Brazilian partner, who must hold at least 20% of the company’s share capital. This measure aims to provide more security to the market and bettors in the country, as explained by Guilherme Sadi, a specialist in law in the sector.
“With the requirements, the regulator’s intention was to provide security for the market and bettors”, he declared.
Impact on the communication market
Large Brazilian communication groups, such as Bandeirantes, Globo and SBT, are among those interested in entering this sports betting market, seeking partnerships to diversify their activities.
Furthermore, these groups have been negotiating with companies in the betting sector, which indicates a strategic movement to strengthen their positions in the market. Globo, for example, closed an agreement with the MGM Resorts group and is preparing the launch of BetMGM for the beginning of next year.
