On December 4, 2023, it was reported that Brazil’s sports betting market has gained significant attention from around the world, with 134 companies expressing their interest in obtaining a license to operate within the country. The Ministry of Finance in Brazil introduced a measure outlining the general conditions for the operation of sports betting in the country on October 27. The measure specified that interested entities needed to submit a prior expression of interest within 30 days of the announcement.
Since the announcement, 134 companies have submitted the required form to operate sports betting, and submissions are still flowing into the Ministry of Finance even after the initial deadline. It’s important to note that the expression of interest is nonbinding, meaning that not all companies will obtain a license.
Of the total submissions, 52 expressions of interest were presented to the Ministry of Finance immediately after the measure was introduced, and an additional 82 were submitted after the Senate’s Economic Affairs Committee approved the sports betting bill. For comparison, the U.S. currently has 40 licensed sportsbooks, with a market worth approximately $83 billion.
If the licensing process is successful, the initial 5-year license cost of BRL30 million (US$6 million) could potentially generate nearly BRL4 billion (US$813 million) in government revenue from license fees alone. But not all applicants will secure a license, as the official licensing process is yet to start due to Senate delays in approving the legislation.
Additionally, another gambling legislative proposal, Bill 2234/2022, addressing casinos in resorts, bingo parlors, online gaming, and more, has faced delays in the Senate since February 2022. Despite the delays, there is an intention to organize extraordinary sessions to address pending agenda items.