Spectrum Gaming, a consultancy formed by consultants and investment bankers -including in Brazil- dedicated to providing services to developers, investors, operators, government agencies and other interested parties, is very attentive to the movements to regulate the gaming sector in the country and points out that “Brazil is an attractive and unexplored market.”
In the update on Brazil, the company estimates that the country could generate between US$9 and US$17 billion in GGR, which would place it in a privileged position, behind only the United States and Macau. Spectrum also points out that “due to stalled efforts of gaming expansion in Japan, Brazil may be the most fertile ground for gaming developers, investors and operators.”
The consulting firm points out in its document that sports betting was legalized in December 2018, and that “the Ministry of Economy is progressing to write regulations within the allotted two-year time frame (which can be extended for up to an additional two years). The details around tax rate, licensure model, number of licenses and modality are not yet defined.”
Spectrum notes that “The Federal Supreme Court (STF) unanimously decided to end the federal government’s monopoly for operating lotteries in Brazil, which allows state lotteries to operate their own. The IGT/SGMS consortium, that was awarded the federal instant ticket concession, announced its withdrawal due to delays on the part of CAIXA Economica to execute a contract by the concession deadline.”
This, in the company's assessment, opens up “significant expansion opportunities for the states. Lottery operators and suppliers will be able to offer their platforms and services directly to states and current operators can extend their offerings.”
In the study, the consulting firm points out that sports betting is advancing and “we still believe that there will continue to be activities around the expansion of gambling in Brazil, as the country seeks additional sources of revenue amid the pandemic. For the gaming industry, Brazil remains the most attractive market due to its large population.”
The firm mentions in its study that “among international gaming companies, Hard Rock appears most focused on Brazil as it continues to develop several hotels in the country; we expect Rio de Janeiro and Sao Paulo to be of keen interest to larger gaming companies such as LVS, CZR and MGM.”
The study can be downloaded in englsh and portuguese.
Source: GMB
