Hand's research shows that the growth recorded in the country is greater than abroad. Europe is the industry's most mature market, accounting for between 40% and 45% of the global online sports betting market.
Asia is close behind, with 30%. North America has around 15% to 20%, and South America represents 10% of this market. Currently, there are almost 500 companies operating in the national territory.
Betting regulation
Although the segment has taken a leap in Brazil, it still lacks regulation. The federal government presented Provisional Measure (PM) No. 1,182, of July 25, 2023, which regularizes this type of company with the creation of an operating license in the amount of R$ 30 million (US$ 6.1m) , which is valid for a period of 5 to 10 years.
Proposed by the Ministry of Finance, the measure is still under analysis by the National Congress, where 244 amendments were presented by deputies and senators. This indicates that, certainly, there will still be a lot of discussion and possible changes in the rules. The chairman of the joint committee responsible for analyzing the provisional measure is Senator Jorge Kajuru (PSB-GO).
The topic gained prominence with the proliferation of betting sites. But also with investigations into the manipulation of football matches through sports betting. By the proposed PM, the 'bets' will be taxed at 18% on the revenue obtained from the games. And discounting the payment of prizes to players and the Income Tax due on the prize.
The government's expectation is to raise at least R$ 1.7 billion (US$ 345m) from betting fees in 2024, an amount that could reach up to R$ 12 billion (US$ 12.45bn) in other years. Congress has four months to approve the proposal, but the joint commission has not yet been concluded.
According to José Venâncio, partner in the M&A area at Hand, the betting market abroad has grown at rates close to 10% a year, but in Brazil the rates are higher than 90%. “Next year, the Brazilian market could reach one-fifth of world revenues,” he points out.
Source: GMB
