It will be possible to submit the request starting tomorrow, when the deadline has already passed, but without the guarantee of obtaining authorization before January 1st, when the sector's regulation takes effect in Brazil.
The Ministry of Finance’s decree, awaited by the sector for months, established rules for online casino-type games. ‘Bets’ – as operators are called in Brazil - were authorized during Michel Temer's (MDB) government under the so-called "fixed-odds" bets, where the payout is disclosed at the moment the bettor places the wager. In the case of other online games, the bettor cannot know how much they might win at the beginning of the game.
The government was trying to find a way to include these games within the legal framework built for ‘Bets’. On July 31st, online casinos were authorized, provided the platforms present a table of potential payouts.
Grant of R$ 30 million (US$ 5.5m)
Data from other countries show that most of the companies’ revenue comes precisely from online gaming. For some bookmakers, permission to operate casinos alongside sport betting would be crucial to pay the R$ 30 million (US$ 5.5m) grant, the amount they will have to pay the government for the license.
The regulation establishes new rules for tax collection. Starting in January, companies will pay 12% on the so-called GGR (Gross Gaming Revenue, the amount wagered by users minus the prizes paid), while players must pay 15% Income Tax on prizes greater than R$ 2,200 (US$ 403).
134 had shown interest
This set of rules helped to select only the most structured companies, says Caio de Souza Loureiro, a partner in the Gaming & E-Sports area at TozziniFreire. The lawyer mentions that the number of requests for grants exceeded initial estimates by those following the sector, which predicted that only 30 companies would show interest in the regulated online gaming market.
In November of last year, the Ministry of Finance shared a list of 134 companies that had expressed an intention to operate in the regulated betting market. However, most were not interested in operating online betting and signed up only because they thought the number of licenses would be limited. Thus, they could sell their spot in a potential waiting line.
CEO of 'Bet' sees selection
Industry representatives point out that the regulation was specifically designed to select the most relevant players with operational capacity. In addition to the R$ 30 million grant, operators must have a company established in the country, holding at least 20% of their share capital.
"The regulated market will ensure that only companies with an unblemished reputation and those that adopt best practices, such as compliance, fraud prevention, and the promotion of responsible gaming, will remain," says Darwin Filho, CEO of Grupo Esportes da Sorte, which requested authorization covering both Esportes da Sorte operations and Onabet, another online betting platform of the group. Each company can request the registration of up to three brands.
Requests come from platforms already operating in the country
The companies that submitted requests in this first phase were precisely those already operating in Brazil and would suffer losses if their operations were suspended starting January 1st. For this reason, Loureiro says that the requests in the coming months will mainly come from foreign operators interested in entering the Brazilian market.
Mariana Tumbiolo, a partner at Madruga BTW Advogados, says that some international companies have faced challenges in complying with the regulations, such as the requirement to establish representatives in Brazil. There have been cases where visa applications for these employees were not processed in time.
Loureiro adds that foreign players are negotiating mergers and acquisitions of companies already operating in Brazil and are included in the list of requests addressed to the Ministry of Finance.
The British newspaper The Times reported that the giant Flutter Entertainment, for example, is negotiating the purchase of Betnacional for £1 billion. Currently, the company belongs to NSX, which is on the list of grant requests.
Updated list of the Betting Management System (Sigap) this Tuesday (20):
001 – Kaizen Gaming Brasil Ltda (BETANO)
002 – SPRBTBR Ltda (SUPERBET)
003 – MMD Tecnologia Entretenimento e Marketing Ltda (REI DO PITACO)
004 – Ventmear Brasil S.A. (SPORTINGBET)
005 – Big Brazil Tecnologia e Loteria S.A. (CAESARS SPORTSBOOK)
006 – NSX Brasil S.A. (BETNACIONAL, MR. JACK e PAGBET)
007 – Apollo Operations Ltda (KTO)
008 – Simulcasting Brasil Som e Imagem S.A. (BETSSON)
009 – Galera Gaming Jogos Eletrônicos S.A. (GALERA.BET)
010 – F12 do Brasil Jogos Eletrônicos Ltda (F12)
011 – Blac Jogos Ltda (SPORTYBET)
012 – EB Intermediações e Jogos S.A. (ESTRELABET)
013 – Reals Brasil Ltda (REALS)
014 – Betfair Brasil Ltda (BETFAIR)
015 – OIG Gaming Ltda
016 – Hiper Bet Tecnologia Ltda (HIPERBET)
017 – NVBT Gaming Ltda (NOVIBET)
018 – Seguro Bet Ltda (SEGUROBET)
019 – Gamewiz Brasil Ltda
020 – Gamewiz Brasil Ltda
021 – HS do Brasil Ltda (BET365)
022 – Aposta Ganha Loterias Ltda (APOSTA GANHA)
023 – Futuras Apostas Ltda (BRAZINO777)
024 – Sorento Bay Ltda (BETWAY)
025 – Lucky Gaming Ltda (4PLAY.BET)
026 – Grove Eagle Gestão de Bens Ltda (ESTADIUM)
027 – H2 Licensed Ltda (H2BET e SEUBET)
028 – SC Operating Brazil Ltda (VBET)
029 – CDA Gaming Ltda (CASA DE APOSTAS e BETSUL)
030 – Esportes Gaming Brasil Ltda (ESPORTES DA SORTE and ONABET)
031 – Fast Gaming S.A. (BETFAST.IO)
032 – Suprema Bet Ltda (SUPREMA.BET)
033 – Betesporte Aposta Online Ltda (BETESPORTE and LANCE DE SORTE)
034 – RRX Soluções Tecnológicas Ltda
035 – King Panda Group Ltda (KINGPANDA)
036 – Boa Lion S.A. (LEOVEGAS)
037 – Betspeed Ltda (BETSPEED)
038 – Defy Ltda (1XBET)
039 – Blow Marketplace Ltda
040 – Levante Brasil Ltda (SORTE ONLINE)
041 – Digiplus Brazil Interactive Ltda
042 – Pixbet Soluções Tecnológicas Ltda (PIXBET)
043 – Lema Administração e Participações S.A. (RIO JOGOS)
044 – Hope Gaming Ltda (PLAYPIX)
045 – BETBR Loterias Ltda (APOSTOU.COM)
046 – Gorillas Group do Brasil Ltda
047 – EA Entretenimento e Esportes LTDA (BATEUBET)
048 – Reals Brasil Ltda (REALS)
049 – Track Gaming Brasil Ltda (BETWARRIOR)
050 – Sortenabet Gaming Brasil S.A. (SORTENABET)
051 – Bell Ventures Digital Ltda
052 – Brilliant Gaming Ltda
053 – Foggo Entertainment Ltda
054 – Ana Gaming Brasil S.A.
055 – TQJ-PAR Participações Societárias S.A.
056 – 7Mbr Ltda
057 – Upbet Brasil Ltda (UPBET)
058 – Enseada Servicos e Tecnologia LTDA
059 – BPX Bets Sports Group Ltda (VAIDEBET, OBABET and BETPIX365)
060 – Alfa Entretenimento S.A.
061 – Betbet Soluções Tecnológicas S.A. (BETBET)
062 – Select Operations Ltda
Source: GMB / O Globo
