With the Brazilian market nearly prepared to launch regulation, sportsbook operator Betsson has bought a 75% in Brazilian counterpart Suaposta, preparing to enter the country with a strong and developed local partner.
Suaposta Sells 75% Stake to Betsson for Sports Betting Launch
Betsson is marching on with its expansion policy in Brazil, after the company secured a 75% stake in one of the country’s most prominent sportsbooks, Suaposta. The deal was sealed ahead of an anticipated government approval for sports betting.
Betsson is hoping to position itself well ahead of the launch and enter what would be a newly regulated Brazilian market with a strong portfolio. The company is not the only operator looking to secure positions in Latin America with competitors such as Betway, 888, and bet365 having made overtures to Buenos Aires, Argentina.
Suaposta is a particularly good opportunity for Betsson as it is the only licensed sports betting operator in Brazil as of this moment. Even though Suaposta had a slight hiccup and had to be relaunched.
Betsson will benefit from its relationship with Suaposta as it would be able to tap into the local market, but also follow through with payment options and methods that work in Brazil specifically.
Partis, a M&M consultancy firm, has made the transaction possible, helping the companies establish synergies and find touching points. Commenting on the deal, Suaposta CEO André Gelfi shared his appreciation for the opportunity to collaborate with Betsson.
The ball is now back in the Brazilian Ministry of the Economy’s Secretariat of Evaluation, Planning, Energy and Lottery (SECAP), which is expected to approve a final draft for the sports betting framework in the country and create a process for foreign entities to start bidding for licenses and try to claim a bigger share of the market.
Preparing for the Launch
There are still a handful of wrinkles to smooth out as the exact framework of regulating sports betting is still not fully negotiated. Originally, the tax rate was estimated at 1%, but reports have confirmed that the tax might reach 6% of sportsbooks’ turnover.
In September, Brazil launched a public consultation service to help the Ministry create a framework that can be used to lay out the details about the industry. The estimated licensing fee according to the draft are worth $735,000.
On top of these fees, there will be supplementary monthly payments based on the type of activity run by operators. Brazil is also serious about protecting consumers. Any advertising in the country promoting gaming and betting must contain a responsible gambling message.
A particularly smart rule says advertisers may not cast gambling an opportunity for an individual to appear smarter, happier or richer. The final touches should be passed this month and the industry is scheduled for an official launch in June 2020.