The sports betting market in Brazil is on the rise, attracting giants such as DraftKings and MGM Resorts International, interested in exploring the country’s potential after the approval of new legislation for the sector.
Currently, Brazil is among the ten largest global markets for sports betting, alongside countries such as Spain and the Netherlands. Thus, the boom in the sector has attracted the attention of renowned companies.
DraftKings and MGM among those interested in Brazilian licenses
DraftKings, known for its online fantasy games, is one of more than 130 companies that have expressed interest in obtaining licenses to operate in Brazil.
According to information from the Ministry of Finance, in addition to this, companies such as MGM and Hard Rock International also intend to enter the Brazilian market.
In an email statement, Griffin Finan, senior vice president and deputy general counsel at DraftKings, expressed excitement about the passage of online gaming legislation in Brazil.
But while big brands prepare to enter the Brazilian market, smaller companies face challenges due to the high licensing fee under the new legislation. This fee can reach R$30 million, in addition to a 12% tax on gross gaming revenue.
For Darwin Henrique, CEO of Esportes da Sorte, many serious companies may not be able to afford these costs.
Brazil is an attractive market for sports betting
Brazil has stood out as an attractive market for foreign sports leagues, with the number of Brazilians interested in the NFL quadrupling in the last ten years.
Furthermore, the country will soon host its first NFL match, in São Paulo, highlighting the growth potential of the sports betting market in the country.
With the formalization of the sports betting market in Brazil, multinational companies have the opportunity to better explore the system. The arrival of these global giants could boost the consolidation of the sector.
But despite all the difficulties, local companies say they are prepared to compete. Knowledge of the Brazilian market and the particularities of local bettors can make the difference between the big ones.
Even before regulation, global sports betting platforms had already been attracted to the Brazilian market, such as Bet365, Entain’s SportingBet LTD and Betfair.
The regulation was approved by the National Congress in December last year.
