EstrelaBet and SportyBet submit Brazil betting licence applications
As Brazil prepares to launch its regulated sports betting market, the race to secure operational licenses is intensifying. With the deadline of 20 August 2024 fast approaching, two prominent operators, EstrelaBet and SportyBet, submitted their applications on Monday, 12 August.
Following closely, Reals Bet joined the fray on 13 August, bringing the total number of applications submitted in Brazil to 13. This surge in applications highlights the growing interest in the lucrative Brazilian market ahead of its expected launch on 1 January 2025.
Operators that successfully file within the initial 90-day submission window will ensure their applications are prioritized for review, allowing them to operate legally without facing penalties. Post-deadline, any operators continuing to engage in activities without the requisite license may incur severe consequences.
EstrelaBet and SportyBet are joining a competitive landscape that includes established players like Betano and Betsson, all vying for a share of what could potentially be a massive sports betting market. According to a recent study by the International Betting Integrity Association, Brazil’s sports betting turnover could soar to $34 billion (£26.8 billion/€31.1 billion) by 2028, signaling a transformative shift in the country’s gambling industry.
Fellipe Fraga, Chief Business Officer of EstrelaBet, expressed the company’s strategic approach, indicating they were awaiting final regulatory guidelines before finalizing their application. “There are still important topics that need to be discussed in the process of obtaining the licence,” Fraga commented, emphasizing the necessity for clarity in operational frameworks.
Final Betting Ordinances Published in Brazil
In recent weeks, the Brazilian government published crucial final ordinances in the Official Gazette of the Union, paving the way for a flurry of license applications. Among these crucial regulations, Normative Ordinance No. 1,207 detailed the types of online games permitted under the new framework. Notably, this includes the contentious game Fortune Tiger, which has sparked debate over the ethics of influencer marketing in the gambling sector.
The newly introduced ordinances also outline regulations on responsible gambling, mandatory state contributions, effective monitoring and oversight, and the sanctions applicable to operators that fail to comply with the established guidelines.
How Many More Operators Will Apply?
Udo Seckelmann, head of Gambling & Crypto at Bichara e Motta Advogados, speculates that up to 60 additional operators may seek licenses before the looming 20 August deadline. In a more cautious projection, Hugo Baungartner, Chief Commercial Officer at Aposta Ganha, estimates that around 20 to 25 operators will submit applications. Baungartner also confirmed that Aposta Ganha is preparing to file its application in the initial week of August, although it has yet to do so.
Current List of Operators Who Have Applied
So far, the following 13 operators have successfully submitted their license applications in Brazil:
- Betano – 26/05/2024
- Superbet – 11/07/2024
- Rei do Pitaco – 19/07/2024
- SportingBet – 25/07/2024
- Big Brazil – 26/07/2024
- Betnacional – 01/08/2024
- KTO – 05/08/2024
- Betsson – 06/08/2024
- galera.bet – 06/08/2024
- F12.Bet – 07/08/2024
- SportyBet – 12/08/2024
- Estrela Bet – 12/08/2024
- Reals Bet – 13/08/2024
The rapid growth in applications signifies both the immense potential of Brazil’s gambling market and the urgent need for operators to comply with the new legal framework. As the deadline approaches, stakeholders will be closely watching government actions and industry movements that will shape the future of sports betting in Brazil.
