The conglomerates behind Globo and SBT sought authorization from the Ministry of Treasury to enter the betting market. Existing legislation prohibits betting companies from acquiring, licensing or financing broadcasting rights for sporting events.
However, communication channels have found ways to get around this restriction through strategic partnerships. Grupo Globo, which holds the broadcasting rights for the Campeonato Brasileiro and other competitions, established a partnership with Leo Vegas, a subsidiary of MGM in Sweden.
This agreement was made through the CNPJs of the Cartola website and Globo Ventures. Globo claims to only have a minority stake in BetMGM, which, according to them, does not violate current legislation.
Patrícia Abravanel, heiress of SBT and presenter of the station, created the brand TQJ — Todos Querem Jogar, in partnership with the British OpenBet. SBT, which shows events such as the Copa Sudamericana and the Champions League, is also exploring the betting market.
Regulation and legislation
Article 18 of law 14,790 prohibits the purchase of broadcasting and reproduction rights for sporting events by betting operators and their controlling companies.
This device was created to protect television broadcasters from a possible increase in the prices of broadcasting rights due to the entry of betting into the market.
According to lawyer Luiz Felipe Maia, Brazilian legislation is unique in this aspect. In other countries, such as the United States, United Kingdom and Australia, there are no such strict restrictions on the relationship between media and betting. However, France and Germany impose strict rules to avoid conflicts of interest.
Business details
According to Folha, Grupo Globo invested R$54.2 million in BetMGM, holding 49.97% of the company, with share capital of R$108.45 million.
BetMGM’s management includes Alessandra Catran Lewit, current director of Cartola, and partners from Globo Ventures. Bill Hornbuckle, president of MGM Resorts, stated that the partnership will allow BetMGM a quick and strong entry into the Brazilian market.
Patrícia Abravanel, on the other hand, brought TQJ to the market with an initial capital of R$40 million. The company’s board of directors includes Marc Thomas Crean, from OpenBet, and Marcelo Barp, financial director of the Silvio Santos Group.
Licensing process for the betting market
The Prizes and Betting Secretariat (SPA) of the Ministry of Treasury is evaluating license applications for new betting operations. Therefore, the process requires the complete presentation of the chain of partners and shareholders.
Companies must be associated with Conar (National Advertising Self-Regulation Council). Groups that registered with the Betting Management System (SIGAP) within the stipulated deadline have priority in responding to their requests.
