Brazil: Battle for top positions in the billion-euro regulated sports betting market

Now the time has come: after a long back and forth, the first official licenses for sports betting were activated in Brazil on 1 January 2025. A whopping 71 licenses were issued. The big players in the industry are positioning themselves for one of the strongest markets in South America and worldwide. International experts and the trade press are expecting an exciting battle for the top spots. Who will get the biggest slice of the cake?

After years of stagnation, Brazil finally launched its own legal sports betting market on January 1, 2025. Although bookmakers have been tolerated in the country since 2018 and also pay the gambling tax of 12%, there was no local license until now. A corresponding decree had been on the table for years, but first had to be fully approved. Incidentally, the legalization of casinos in Brazil has also been under discussion for a long time , which could boost tourism, among other things.

• But the path to profit is likely to be anything but a sure-fire success: With no fewer than 71 licenses awarded by the gambling authority, this is not about a "leisurely" showdown like in other countries. No, Brazil is going full throttle in the competition right from the start. The market is therefore one of the most open in the world - and that ensures plenty of competition.
• The companies also had to dig deep into their pockets to take part: a permit costs 30 million real, the equivalent of almost 5 million euros. But that's just the entrance ticket. Local offices, bank accounts and permits - if you want to play here, you have to deliver first.

The effort seems to be worth it. According to the aforementioned IBIA study, the Brazilian state is expected to collect around 2.3 billion dollars in taxes in the first year of regulation alone. At a tax rate of 12 percent, this would mean a turnover of almost 20 billion: sums that not only make politicians rejoice, but also show why the major gambling providers are doing everything they can to be at the forefront of Brazil's new sports betting era right from the start.

Who will win the race? Experts and insiders discuss the favorites in the Brazilian gambling market

When it comes to the Brazilian betting market, the wires are burning hot in the industry. Analyses, forecasts and strategies are flying through the air. The big question: who will take pole position in the hotly contested competition? International experts see striking parallels to the start of the US betting industry a few years ago, where takeovers and mergers set the course for today's frontrunners. Will Brazil follow the same script?

The favorites: Who is investing the smartest?

1. Flutter: Flutter Entertainment doesn't do things by halves. The group, known for mega deals such as the takeover of FanDuel, recently snapped up a 56 percent stake in Brazilian provider Betnacional - for a whopping 350 million dollars. And that's just the beginning. Flutter relies on a strategy they call "Local Hero": This involves using local brands that are firmly anchored in the region for their own purposes. The goal: a whopping 25 percent market share in Brazil by 2030. Analysts are optimistic: the Group's previous acquisitions have already earned investors an additional 200 dollars per share.
2. MGM: MGM Resorts International also got its act together early. They are cooperating with the Brazilian media giant Grupo Globo to put their BetMGM brand in the spotlight. Incidentally, BetMGM has also arrived in Europe - with platforms for the UK, the Netherlands and Sweden. Globo reaches 70 million people every day via TV, radio and digital channels - an unbeatable advertising machine. Experts are excited: Can the media partnership model, which has tended to flop in the USA, become a success in Brazil?
3. Europe and Asia: European giants such as Entain, Betano and Betsson are also keeping an eye on the market. Betsson recently reported record revenues of more than 300 million US dollars for the third quarter of 2024. The bookmaker Betano is now generally a top-tier global player. Some Asian companies - including former black market providers - are sensing their chance to gain a legal foothold. And then there are the US heavyweights such as DraftKings, which are holding back for the time being and observing how the competition develops. It is not unlikely that a few more initiatives will follow here - but by then the "early birds" will certainly have already made tens of millions and built up a large fan base.

Why Brazil ticks differently

The race for market share in Brazil is different from other countries. It's not just capital that counts here, but above all local expertise. By law, providers must prove that they have a physical presence in the country. While some of them open offices, others prefer to buy already established local brands. M&A (merger and acquisition) is therefore the buzzword of the moment.

Another distinguishing feature is the immense trust that Brazilian consumers place in well-known brands. Partnerships with media companies or other local players can make the difference here. No wonder experts believe that Grupo Globo could give BetMGM a real bonus in the battle for the favor of Brazilian bettors.

Source of the image: https://pixabay.com/photos/goats-competition-dispute-692660/