Caesars’ Big Brazil and Sportingbet apply for Brazil licences

Sportingbet and Caesars Sportsbook’s licensee Big Brazil have officially submitted their license applications in Brazil, marking a significant step in the country’s evolving sports betting market.

On July 25th, Sportingbet took the initiative to apply for a sports betting and igaming license in Brazil. The following day, Big Brazil, under the Caesars Sportsbook umbrella, joined the ranks of established operators such as Betano, Superbet, and Rei do Pitaco, culminating in five total applications to date.

By submitting their applications within the initial 90-day priority window, both Sportingbet and Big Brazil will benefit from expedited processing by the Ministry of Finance’s Secretariat of Prizes and Bets (SPA). The SPA has committed to processing applications received by the August 20th deadline, a critical milestone as it leads up to the anticipated launch of the regulated market on January 1, 2025.

Licenses granted will be valid for a five-year term and require a fee of BRL30 million (£4.6 million/€5.4 million/$5.9 million). Licensed operators will be permitted to utilize three betting skins. Notably, operators failing to secure a license by the set deadline may face stringent penalties.

Increased Activity in Brazil’s Licensing Applications

As the countdown to the August 20th deadline continues, Brazil has seen its application tally rise to just five—though a significant shift is evident with four of these applications having been submitted in July alone. This represents a marked increase from June, which witnessed inactivity following Kaizen Gaming’s Betano being the first to apply on May 26th, shortly after the application window opened.

Despite the early sluggishness, industry expert Hugo Baungartner, Chief Commercial Officer of Aposta Ganha, anticipates a surge in applications as the deadline draws near. However, the regulatory framework rollout remains behind schedule. Critical regulations regarding anti-money laundering, which were expected in May, were only released in mid-July. Complete clarity on the regulatory framework was projected for the end of July but is now uncertain, with pending technical standards and industry contribution allocations still being finalized.

Notwithstanding these delays, Udo Seckelmann, head of crypto and gambling at Bichara e Motta Advogados, predicts that up to 60 operators may still file applications by the August 20th deadline. Meanwhile, Baungartner estimates that between 20 to 25 operators might complete their applications in time.

Caesars Moves Forward with Proof of Concept to Loterj

In parallel with its federal license application, Caesars has successfully submitted a proof of concept (PoC) to the Rio de Janeiro State Lottery (Loterj) to facilitate sports betting and igaming operations within the state. This initiative follows Big Brazil’s earlier announcement in March regarding its intent to secure Loterj accreditation. President André Feldman met with Loterj president Hazenclever Lopes Cançado to express their commitment to this venture.

Feldman, excited about Big Brazil’s plans, stated, “We will introduce the Caesars Sportsbook brand into the country through the state of Rio de Janeiro.” He emphasized the area’s significance, remarking that Rio, with its population of over 16 million, presents a market potential rivaling that of several European countries of similar size, such as Belgium and Greece.

The Loterj license would enable Big Brazil to operate in Rio de Janeiro. However, previous licensees have typically been granted authorization to operate nationally, raising concerns regarding Loterj’s regulatory reach. This has drawn criticism from the Brazilian Institute for Responsible Gaming (IBJR), which reported in April that Loterj’s actions could hamper the proper regulation of Brazil’s fixed-odds betting industry.

“The actions undertaken by Loterj foster confusion, introduce unnecessary uncertainties, and impede the regulation process of Brazil’s sports betting sector,” remarked the IBJR, shedding light on potential pitfalls in the industry’s regulatory landscape.