GamblingCompliance’s report, ‘Latin America Online Gambling Outlook 2019’, includes a summary of the regulatory climate for online gambling in other Latin American countries.
The projections on online gambling in Latin America forecast a ‘base-case’ scenario in which land-based and online operators generate US$1.04 billion in revenue within five years of launch. The Brazilian sports betting market, however, could be worth as much as US$1.56 billion under a favorable regulatory climate with strong take-up by consumers.
The report offers a current panorama in Brazil both from the legislative and future perspectives.
The signing in December 2018 of new Law 13.756/2018, which legalises online and land-based fixed-odds sports betting, initiated a two year window the ministry has to establish regulations, although there is an option for an additional two years if necessary.
Online sports betting operators will be permitted to retain a maximum of 8% of total stakes, with the remainder being distributed to prize payouts (89% minimum), public services (2%) and sports entities (1%).
The law does not specify any upfront licensing costs, suggesting that these too will be left up to the implementing regulations. However, it does establish a monthly regulatory fee (of approx. US$15,000 to US$500,000) based on the amount of prize money paid out by an operator.
Market size
GamblingCompliance estimates Brazil’s land-based and online sports market to be worth approximately US$1.04 billion by year five under a base case scenario. “Under a bull case, we estimate the market to be worth roughly US$1.56 billionn. Online wagering is expected to account for 60-70% of the overall market,” states the report.
Factors affecting the market size include: the regulatory framework; effectiveness of enforcement; other gaming expansion efforts.
Potential players
• GVC: Television marketing of Sportingbet.tv – a Brazil-facing statistics site – has made Sportingbet one of the top online betting brands in Brazil
• bet365: The industry giant also has a strong presence in Brazil
• The Stars Group: Legal findings that poker is a game of skill allow PokerStars to build up a sizeable Brazilian customer base
• NetBet: Malta-based operator has shirt sponsorship deals with two teams in Brazil’s Premier League
• 1xBet: Along with Bodog, 1xBet has begun advertising via pitch-side hoardings during Brazilian Premier League games
• Suaposta - Formerly Codere-owned group is licensed to offer online horse race betting in Brazil
• Globo: Brazilian media giant offers a popular fantasy sports game –Cartola – and has published several recent editorials in favour of regulated gambling.
“With Brazil and the most populous region of Argentina both set to regulate, Latin America has rapidly become more strategically important to the global online gambling industry,” said Kristal Rovira, GamblingCompliance’s legal and research director. “Under the right conditions, we expect Brazil could become one of the largest regulated sports betting markets in the world in the coming years.”
To download a copy of the report, click here.
Source: GMB / GamblingCompliance
