108 Companies Seek Licenses for Brazilian Sports Betting and iGaming Market Launch in 2025

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2 months ago

Brazil’s Sports Betting Market Heats Up as License Applications Surge

Brazil’s regulated sports betting and online gaming market is set to launch on January 1, 2025, and the race to secure licenses is exceeding expectations. By Tuesday night’s deadline, a staggering 108 companies had submitted applications to the Secretariat of Prizes and Betting (SPA) of the Ministry of Finance. This figure far surpasses the SPA’s initial estimate of around 40 qualifying companies.

The Betting Management System (Sigap) recorded a total of 114 submitted cases, with one exclusion (Betbet). Several companies, including Gamewiz, Reals, Tropicalize, Defy, and AF Tecnologia, submitted multiple requests.

Each authorized company can operate up to three brands in the Brazilian market. After the deadline, operating without a federal license will be illegal, prohibiting advertising, sponsorships, and related financial transactions.

Major Players Vie for Position

The Sigap website reveals a list of prominent national and global operators seeking to establish a regulated presence in Brazil. National companies such as EstrelaBet, BETesporte, Betnacional, Esportes da Sorte, Betsul, Bet7k, and Reals are joined by international giants like bet365, Caesars Sportsbook, 1xBet, Betsson, KTO, Superbet, Sportingbet, Vbet, Betano, and Betfair.

Government Anticipates Significant Revenue

The government projects initial revenue from concessions to reach R$3 billion (US$550 million), with each grant valued at R$30 million (US$5.5 million). However, the Secretary of Prizes and Bets, Régis Dudena, cautioned that not all registered companies will receive authorization.

“Since the vast majority of applications were filed in the last few days, we still do not have an initial assessment regarding the completeness of the requirements, but it is expected that not all will comply with all of the requirements,” assured Dudena.

The SPA’s analysis may lead to a reduction in the number of approved licenses or delays in the approval process. Some applicants lack the minimum share capital, while others have indicated incompatible National Classification of Economic Activities (CNAE).

Tax Implications and Market Potential

In addition to grants, operators will be subject to a 12% tax on gross gaming revenue (GGR) and an inspection fee, effective January 1, 2025. The Brazilian market is estimated at around R$100 billion (US$18.4 billion) per year. Prize winners will also pay 15% on winnings above the minimum wage.

Online betting sites in Brazil will operate under the new domain “bet.br,” designed to combat fraud and illegal betting activities.

The Prizes and Betting Secretariat will evaluate all applications. Companies that applied in August can expect a response by November, followed by a one-month window to pay the R$30 million (US$5.5 million) grant.

The government anticipates that Brazil will become one of the world’s largest markets, recognizing the significant economic impact of sports betting and online gaming.

While the application window remains open, there is no guarantee that new entrants will begin operating on January 1st of next year.