Betsson receives full Brazil betting licence

Betsson AB has recently achieved a significant milestone by securing its full license to offer online sports betting and igaming in Brazil. This strategic move is an integral part of the company’s broader international growth agenda, as articulated by President and CEO Pontus Lindwall.

Betsson was among the first group of 10 companies to apply for a betting license in Brazil; however, it did not make the initial cut among the 43 operators who received a full license earlier this year. Instead, the company was granted provisional authorization during the first licensing round while it prepared its technical certifications.

On Wednesday, February 26, Betsson proudly announced that it had obtained its full operational license, valid for a five-year period starting from February 25. This approval marks an important step in Betsson’s strategy in the Brazilian market.

Since entering Brazil in 2019 with the acquisition of a 75% stake in the local sportsbook operator Suaposta, Betsson has been strengthening its foothold. The company also operates in neighboring Latin American markets, including Colombia and Peru, underscoring its commitment to geographical expansion.

In his announcement, Lindwall expressed enthusiasm regarding the new regulatory framework in Brazil, stating, “We welcome the introduction of a local regulatory framework in Brazil and are pleased to have obtained a license. This step aligns with our strategy to grow via geographical expansion, and we look forward to offering Brazilian customers a secure and high-quality gaming experience.”

On the same day, five other operators, including Big Brazil with its Caesars brand, Skill On Net, and Reals Brasil, also received full licenses, further indicating the growing legality and competition within the Brazilian betting landscape.

Betsson’s Strategic Timing in Brazil

Despite receiving its full license, Betsson has indicated a cautious approach to its Brazilian investment strategy. Group CEO Jesper Svensson previously noted the company would shift its focus predominantly to Spanish-speaking Latin American markets in the immediate future.

In an interview with iGB, Svensson explained, “Although we have been growing really well in Latin America, we have not yet started to invest in Brazil. We will try the market, but our focus has been more on the Spanish-speaking countries. However, our ambition is clearly to be part of the regulation and, over time, build a strong business in Brazil as well.”

Notably, Betsson’s financial performance has been robust; the company reported revenues exceeding €1 billion (£833.2 million/$1.04 billion) for the full year of 2024, reflecting a 16.8% growth compared to 2023. Lindwall attributed this remarkable growth, in part, to Betsson’s strategic investments in Latin America, highlighting the region as a critical driver of the company’s success.

VaideBet Secures Provisional Authorization

Joining the ranks of authorized operators in Brazil, albeit provisionally, is VaideBet, following a court ruling that granted its parent company, BPX Bets Sports Group, the necessary permissions to operate. This decision allows BPX Bets’s brands, including BetPix365 and ObaBet, to engage in fixed-odds betting across Brazil effective February 26.

Judge Pablo Zuniga Dourado’s ruling also imposed a daily fine of BRL10,000 (£1,292/€1,555/$1,635) on the Secretariat of Prizes and Bets (SPA) should it fail to comply with the court’s authorization. Furthermore, Zuniga has indicated a willingness to collaborate with the public prosecutor’s office to investigate potential noncompliance by SPA, which emphasizes the judicial system’s engagement in regulating the gambling sector in Brazil.

Subsequently, the SPA complied with the court’s directive, granting provisional operational rights to BPX Bets. However, it has been reported that another operator, Tropicalize, was removed from the approved list after it failed to pay the requisite BRL30 million licensing fee, reaffirming the importance of regulatory compliance in maintaining operational status in the competitive Brazilian gaming market.

As the landscape continues to evolve, industry stakeholders are keenly observing these developments, which reflect a significant shift in Brazil’s regulatory environment. Companies aiming to participate in this burgeoning market must remain agile, responsive to legal frameworks, and proactive in enhancing their market presence.