Sportingbet and Caesars Sportsbook’s Big Brazil have both submitted their license applications in Brazil, becoming the fourth and fifth operators to do so.
Sportingbet applied for a sports betting and igaming license in Brazil on Thursday, July 25. The following day, Caesars Sportsbook’s licensee Big Brazil also submitted its application, joining Sportingbet, Betano, Superbet, and Rei do Pitaco in the process.
By applying within the initial 90-day priority window, Sportingbet and Big Brazil have ensured that their applications will be prioritized by the Ministry of Finance’s Secretariat of Prizes and Bets (SPA). The SPA guarantees that applications submitted by the August 20 deadline will be processed by January 1, 2025, the anticipated launch date of the legal market.
Licenses will be valid for five years and will cost BRL30m (£4.6m/€5.4m/$5.9m) in fees. License holders will be able to offer gambling via three skins. Operators who fail to secure a license by January 1, 2025, will face punitive measures.
Brazil License Applications Gaining Momentum
With three weeks remaining until the August 20 deadline, the number of license applications stands at five. Notably, four of these applications have been submitted in July, following a lull in June. Betano, owned by Kaizen Gaming, was the first to apply on May 26, just days after the window opened.
Despite the slow start, Aposta Ganha CCO Hugo Baungartner expects a surge in applications as the deadline approaches. However, the regulatory rollout is behind schedule. Anti-money laundering regulations expected in May were only released in mid-July, and the complete regulation, originally anticipated by the end of July, remains incomplete with technical standards and industry contributions yet to be defined.
Despite these delays, Udo Seckelmann, head of crypto and gambling at Bichara e Motta Advogados, anticipates up to 60 operators will submit applications by August 20. Baungartner expects between 20 and 25 applicants by the deadline.
Caesars Submits Proof of Concept to Loterj
In addition to applying for a federal license, Caesars has completed a proof of concept (PoC) for the Rio de Janeiro State Lottery (Loterj) to operate sports betting and igaming in the state.
Caesars’ licensee Big Brazil announced its intention to seek Loterj accreditation in March. Big Brazil president André Feldman visited Loterj president Hazenclever Lopes Cançado to express the company’s interest.
After submitting the PoC to Loterj, Feldman expressed enthusiasm about Big Brazil’s plans. “We will introduce the Caesars Sportsbook brand into the country through the state of Rio de Janeiro,” he said. “We prioritized Rio de Janeiro, which, with a population of over 16 million, has greater potential than several European countries with similar populations, such as Belgium, the Czech Republic, Greece, Sweden, and Portugal.”
A Loterj license would allow Big Brazil to operate in Rio de Janeiro. However, Loterj has faced criticism for allowing companies with state licenses to operate nationally. The Brazilian Institute for Responsible Gaming (IBJR) criticized Loterj in April for overstepping its jurisdiction, stating that its actions created confusion and harmed the regulatory process for the fixed-odds betting industry in Brazil.