Rei do Pitaco submits Brazil licence application
Rei do Pitaco Submits License Application in Brazil: A Strategic Move in the Emerging Market
On July 19, 2023, Rei do Pitaco formally submitted its application to secure a license for operations in Brazil, marking it as the third major player to undertake this step in the burgeoning Brazilian gambling landscape.
Operating under the legal entity MMD Tecnologia Entretenimento e Marketing Ltda, Rei do Pitaco joins industry leaders Betano and Superbet in vying for a license. With less than a month remaining until the closure of the 90-day application window on August 20, only three operators have stepped forward to seek approval.
This initial 90-day application window, which commenced in May, is critical as it prioritizes applications received within this timeframe. The Brazilian Ministry of Finance’s Secretariat of Prizes and Bets (SPA) is committed to expediting the review process of these applications, ensuring that operators will receive a definitive decision ahead of the much-anticipated market launch on January 1, 2025.
Rei do Pitaco initially made its mark as a daily fantasy sports operator before transitioning to sports betting in 2022. The company solidified its growth ambitions by entering a multi-year partnership with Kambi in December of the same year, leveraging their technology to enhance its online sportsbook capabilities.
Demonstrating its popularity, the Rei do Pitaco app has amassed over 14 million downloads, accumulating over BRL200 million (£27.6 million / €32.7 million / $35.6 million) in prize payouts, highlighting the operator’s substantial market presence and consumer engagement.
Accelerating Applications as Deadline Approaches
The submission by Rei do Pitaco is a significant development, representing the second application in July following Superbet’s recent move. Notably, Kaizen Gaming-owned Betano was the first to apply shortly after the application window opened, while June remained inactive regarding licensing applications.
Industry experts anticipate a surge in applications as the deadline nears. Hugo Baungartner, Chief Commercial Officer (CCO) at Aposta Ganha, posits that the expected publication of final regulations, anticipated later this month, will serve as a critical catalyst for operators to submit their license requests. Baungartner stated, “They are ensuring that approved testing labs for the Brazilian market are adequately prepared to certify the games outlined in the ordinance.”
However, the regulatory timeline has encountered delays—Anti-Money Laundering (AML) regulations were released later than expected, with additional clarifications on technical standards and gambling contribution allocations still forthcoming.
Furthermore, Udo Seckelmann, head of crypto and gambling at Bichara e Motta Advogados, forecasts that by the August 20 deadline, as many as 60 operators may submit their applications, reflecting a robust interest in Brazil’s evolving gambling market.
In conclusion, as Brazil prepares for the full legalization of sports betting, operators like Rei do Pitaco are positioning themselves strategically to capture market share amid regulatory uncertainties. The coming weeks will be crucial as stakeholders navigate the application process, setting the stage for a dynamic and competitive gambling environment by early 2025.
