DraftKings, MGM Set Sights on Brazil’s Thriving Online Gambling Sector

Sports betting heavyweights DraftKings and MGM International Resorts, which are always on the lookout for new markets to expand, already have their eyes on the Brazilian gambling market.

South America stands out as one of the most rapidly expanding regions globally across various industries, making it exceptionally attractive to investors seeking promising opportunities. Hence, a little background check shows that, due to a number of legalizations, Brazil has set the pace in the regional gaming sector.

With the beginning of the easing of online gambling laws in 2018, this 200 million-person country has quickly risen to become one of the world’s most important betting markets. As a result, Brazil is now ranked among the top 10 worldwide gaming players, with gross gaming revenues that rival those of well-known gaming hubs like Spain and the Netherlands.

Related Pages: Sports Betting Apps | Sportsbook Promos

Brazil Implements New Gambling Laws

The internet gambling industry in Brazil is expected to grow further, especially after President Luiz Inacio Lula da Silva recently signed new laws pertaining to regulatory frameworks and license costs.

Operators are now required by law to set aside up to 30 million reais, which is around $5.9 million, for a license fee, which must be renewed every five years. Plus, a 12% tax on gross gaming revenue. However, some reports show that this fee may be too much to bear, especially for the roughly 1,000 smaller gaming operators in the country, regardless of how well-run they are.

Additionally, operators who will be granted licenses are required by the legislation to establish and maintain a physical presence in Brazil. It’s unclear at this time which operators will choose to set up shop.

As the sector prepares for future growth, the Brazilian publication Itatiaia has discovered and made public a list of 134 operators that have indicated that they would like to be included in the regulated online gaming market in their nation. These operators have publicly expressed their interest in the Brazilian Ministry of Finance, even if they have not yet filed formal licensing applications.

Besides DraftKings and MGM, other operators with interest in the Brazilian market are some of the entities that have already dominated the North American market, like Betway, Hard Rock International, Bally’s, and Rush Street Interactive.

Griffin Finan, Senior Vice President and Deputy General Counsel of DraftKings, stated his delight at Brazil’s recent enactment of online gambling regulations. As he said, DraftKings was one of over 100 firms that filed non-binding indications of interest.

Brazil Maintains Momentum as Top Gambling Hub in South America

Brazil is known for its intense love of soccer and is becoming a more desirable market for international sports organizations looking to grow internationally.

According to statistics from sports marketing research firm IBOPE Repucom, the number of Brazilians who watch the National Football League (NFL) has increased considerably over the last 10 years, now approaching 40 million. Hence, the NFL’s first-ever game in South America will take place in Sao Paulo, which is a huge step forward for the league’s global reach.

Revenue reports have disclosed that the nation had $1.5 billion in gross gaming revenues in 2022, placing it 10th in the world, which was a huge achievement as prior to that year, Brazil was not in the top 15.

This sudden surge has caused industry research company Vixio Gambling Compliance to project that gross gaming revenues from Brazil’s regulated online market are predicted to grow by about $5 billion in the first five years of operation, revealing a significant potential for economic growth.

READ MORE:

• DraftKings Director: NC Early Handle “Significantly Exceeded” Expectations
• BetMGM Shares Early North Carolina Sports Betting Launch Data
• US Sports Betting Revenue Tracker