Communication groups are in negotiations to form joint ventures and operate in Brazil with “bets”, a term used to refer to online sports betting companies.
According to Estadão, the most advanced agreement is between Grupo Bandeirantes de Comunicação and OpenBet. It belongs to the North American group Endeavor, which processes half of the sports bets in the USA and Canada, in addition to 65% of those in the United Kingdom.
Possible partnerships
In Brazil, a local partner must hold at least an 80% stake for international online sports betting companies to operate. But the search for local partners is not just due to this limitation.
“For international companies, a partner with knowledge of the Brazilian market is interested,” says José Francisco Manssur, former special advisor to the Ministry of Finance.
The advantage for Brazilian communication companies is the diversification of sources of income and advancement in a booming area. In November, the Treasury began the accreditation process for companies that wish to operate in the betting market.
Thus, the grant, valid for three years, costs R$30 million. The government expected to receive 30 applications, but received 130.
Two companies, one from the USA and the other from Europe, have already approached Globo to establish a partnership. But the group also gained accreditation at the Treasury through DFS Entretenimento, owner of Cartola Futebol Clube.
“In fact, Globo doesn’t need a partner. Because it dominates the Brazilian media market, has Cartola’s expertise and can choose who it wants to form a partnership with,” a source told Estadão.
Sports betting regulation
The Bets Law, sanctioned in 2023, prohibits operators in the sector from owning, licensing or financing broadcasting rights for sporting events. So, according to the Treasury’s schedule, the first list of accredited candidates will be published in July.
In the meantime, rules are being defined, including one that prevents bettors from using credit cards. Therefore, by July, the Finance will also publish all the details of the sector’s regulations.
“One and a half percent of the Brazilian population has a gambling compulsion. That’s a lot of people and this is being taken into account,” added Manssur.
In a statement, Globo confirmed that DFS is evaluating the business opportunities. “The company is studying the potential of the sports betting segment in Brazil”, stated in a note sent to the newspaper, while Band and SBT did not comment.
