In a recent session on Tuesday, December 10, Regis Dudena, the head of the Brazil SPA, announced that 71 licenses have been granted. The SPA continues to assess the remaining 43 applications from the initial deadline of August 20.
Dudena withheld the identities of the approved applicants but noted that all selected operators have been notified for a final assessment prior to the market’s opening. Brazil’s regulated market is set to launch on January 1, 2025, and operators must meet compliance requirements before then.
“The final obligations include not only technical certifications for their betting systems but also involve financial stipulations such as securing full capital, creating a reserve account, and paying a concession fee,” Dudena explained.
He added that the Ministry of Finance has informed all 71 companies, who now have 30 days to meet these final conditions. So far, 16 companies have paid their concession fees, contributing a total of BRL480 million (£63.3 million/€76.4 million/$80 million). Each license requires a R$30 million fee.
### Potential License Holders in Brazil
The 90-day priority window for license applications, which commenced in May, garnered substantial interest. By early November, over 270 companies had filed applications, exceeding the initial deadline.
Those who applied late will likely not have a license by the opening day. The regulator emphasized the importance of processing applications from the initial phase to ensure readiness by January 1.
Some notable applicants for the licenses include Sportingbet, Caesars Sportsbook’s Big Brazil, Superbet, and Rei do Pitaco. Kaizen Gaming’s Betano was the first to apply on May 26, shortly after applications opened.
Analysts suggest that Flutter Entertainment may lead the market in Brazil soon. Macquarie projected this week that the NYSE-listed company could expand its market share in Brazil from 10% to 25% within five years.
Rob Coldrake, Flutter’s CFO, expressed enthusiasm about their potential in Brazil during a post-Q3 earnings call, stating: “We’re eager to explore the vast possibilities in this exciting market.”
### Early Withdrawals from the Licensing Process
Last month, it was reported that certain operators exited the licensing race before their applications were processed, with Super Group’s Betway being among the most notable withdrawals.
Commenting on this decision, Super Group’s president and chief commercial officer Richard Hasson stated that they aim to focus on markets where returns are more foreseeable.
“Brazil is currently a hot topic across the industry,” Hasson mentioned. “However, we’re pausing our effort there to ensure we can pinpoint a viable path to profitability.”
Other operators like Arena Esportiva, AmuletoBet, and Vera&John, owned by Bally’s Corporation, have similarly exited the process.
### Delayed Vote on Land-Based Casinos
In other news, the Brazilian Senate delayed plans to vote on a bill that would legalize land-based casinos, bingo halls, and horse race betting.
Bill 2,234/2022, endorsed by the Chamber of Deputies’ Constitution and Justice and Citizenship Commission (CCJC) in June, has encountered numerous delays.
A vote initially scheduled for August was postponed, with further delays in October. Last month, Senator Irajá Silvestre indicated hope for a vote by late 2024.
A December 4 vote was also halted. Although senators debated the proposal, Silvestre pulled the bill. Senate president Rodrigo Pacheco announced that the vote is now planned for next year.