The regulation of online betting will create, practically overnight, one of the largest economic activities in the country – with annual revenues that could soon exceed R$300 billion (US$ 54.7bn). This prospect is leading the world's largest gaming and entertainment companies to line up at the Ministry of Finance to obtain registration and legally explore this business.
“We are not going to position ourselves as a betting company, but rather as an entertainment company for the upper-income public,” said Morais, who has a history in health and wellness companies and sees no contradiction in investing in the addictive business of gambling.
Big Brazil’s president is businessman André Feldman, who has been representing the Caesars group in Brazil for almost a decade – and who has already brought the World Series of Poker brand, the largest poker tournament in the world, to Brazil.
Alongside the Brazilians, the American group will debut in the country’s gambling market with the Caesars Sportsbook brand. In addition to sports betting, the platform will offer several online gambling games, including some of Caesars’ 700 proprietary games.
“It will be a Las Vegas experience without leaving Brazil,” said Feldman. The technological platform will be the same one used in the US and other countries where Caesars operates its slot machines and poker tables.
A publicly traded company, Caesars Entertainment had revenues of US$11.5 billion last year and net profits of US$786 million. Its market cap is US$8 billion.
The group has the second largest number of rooms in Las Vegas – behind only MGM Resorts – but is present in a greater number of American states, with 59 hotels under its brands.
Initially, under the law already approved in Brazil, games will be exclusively online. Physical casinos depend on another law that has been in Congress for years and may now be close to approval – the final vote in the Senate is expected in September.
According to Feldman, the association of companies in the sector estimates that online betting already generates between R$100 billion (US$18.2bn) and R$120 billion (US$21.8bn) per year.
“But after its regulation, the market has the potential to be three times that, or even four times more,” said the entrepreneur.
Currently, without the green light from the Treasury, the frenetic Brazilian online gambling market is driven by international companies based in tax havens that took advantage of a gray area in the law approved at the end of 2018.
However, starting in 2025, only companies authorized by the Ministry of Finance and headquartered in Brazil will be able to operate virtual gambling. Those that do not comply with the rules will have their websites and apps shut down by Anatel.
In addition to the Caesars partnership, last week Grupo Globo announced a JV with MGM Resorts to launch BetMGM in Brazil.
Source: Brazil Journal
