The window for prioritised licence applications in Brazil has now shut with 113 operators submitting requests ahead of the deadline and excitement is building ahead of the market going live.
By applying before the 20 August deadline passed, the 113 operators have ensured their licence applications will be processed by 1 January 2025, the forecast launch date of the legal market in Brazil.
The 90-day initial window of preference opened in May. For a while, it appeared the number of applications would fall well short of industry expectations with just Kaizen Gaming-owned Betano applying by the end of June.
However, the publication of the remaining ordinances sparked an acceleration of requests, with 108 of the 113 applications coming after the final ordinance on sanctions was announced on 31 July. Notably, the much-awaited Normative Ordinance No 1,207 on online games clarifying which games would be allowed was one of the last to be published.
The total number of applications fell short of the 134 operators who expressed their interest in gaining a licence earlier this year. However Neil Montgomery of Brazilian law firm Montgomery & Associados believes the government will still be delighted with the figure.
“The prizes and betting secretariat (SPA) of the ministry of finance must have released fireworks in Brazil when the tally of applications for a federal licence comfortably surpassed 100,” Montgomery tells iGB.
“The total number of applications exceeded multiple times the SPA’s expectation of receiving around 40 applications. This is, therefore, very good news for the federal government, since it will show a sound interest in the Brazilian regulated market.”
Significant interest in Brazil betting market
The Brazil gambling industry is set to be one of the most exciting in the world, with a recent International Betting Integrity Association (IBIA) report predicting the market could hit $34bn (£26.8bn/€31.1bn) in sports betting turnover by 2028, with an onshore gross win of $2.8bn.
The high number of applications is made even more significant by the obstacles facing operators, including a BRL30m (£4.2m/€4.9m/$5.5m) licence fee and intensive regulations on accreditation and maintenance.
Such regulations caused some industry concern over whether there was a place for smaller operators in the market. Yet Bichara e Motta Advogados’ head of gambling & crypto, Udo Seckelmann, believes the tally of requests indicates the potential is just too vast to ignore or delay entry.
“This clearly shows that the igaming industry in Brazil craves for a professional environment, with clear rules and legal certainty,” Seckelmann says.
