Brazil will launch its legal betting market on January 1, 2025, and one operator hoping to make a big difference in the market is giant Flutter Entertainment.
In September, Flutter announced that it had agreed to acquire an initial 56% stake in NSX Group, which operates the Betnacional brand in Brazil. The deal is worth US$350 million (£266.5 million/€316.0 million).
For the nine months ending September 30, Flutter recorded 4% year-over-year revenue growth in Brazil. On his earnings call following the release of third-quarter results, CFO Rob Coldrake spoke about the operator’s excitement about opening the market.
“We are very confident in our approach in Brazil,” said Coldrake. “We grow with our brands that we already have there. We are very excited about the acquisition of NSX.”
According to the iGaming Business website, the acquisition of NSX will create a new “Flutter Brasil” business, which will combine Flutter’s existing Betfair brand with NSX Group’s Pagbet, MrJack.bet and Betpix brands.
Entain predicts growth in betting operations in Brazil
However, the launch will bring a wave of new competition for established companies in the market. Entain CFO Rob Wood, for example, expects rapid growth in Brazil to slow when the legal market comes online in the new year.
In its third quarter commercial results, Entain recorded 48% annual revenue growth in Brazil, having also achieved this number in the second quarter. The success in the country was described by Wood as the “highlight” of Entain’s third quarter results. This comes after a major operational turnaround, making it its fastest growing market.
However, Wood warned that growth in Brazil would slow for Entain following the launch of the legal market. The launch brings with it strict regulations, including new controls for marketing.
Wood told analysts on an Oct. 17 conference call: “Brazil growth in 2025 is likely to be much more moderate. But, clearly, Brazil is a very important market for us.”
Entain is currently present in Brazil with Sportingbet, one of 223 companies currently approved to do business in the country until the end of 2024, as part of the transition period. Furthermore, Sportingbet should soon be announced as Palmeiras‘ master sponsor.
MGM prepares to launch a bookmaker in Brazil in January
MGM Resorts CEO and President Bill Hornbuckle expects BetMGM to launch in Brazil in January if it receives a license.
This follows MGM’s third quarter entry into a strategic venture with Brazil-based Grupo Globo, the largest media group in Latin America. BetMGM’s ability to leverage this media presence will be vital to the success of the business in Brazil, Hornbuckle said.
“This venture is significant as it allows us to leverage MGM’s LeoVegas technology and gain access to 70 million people, providing invaluable insights into Brazil’s consumer market,” explained Hornbuckle on MGM’s third-quarter earnings call on October 30.
Partnerships between carriers and media companies have had mixed results lately, but Hornbuckle thinks this venture is different.
“This is not a standard sponsorship deal, but rather an equity deal,” explained Hornbuckle. “They [Grupo Globo] invested in advertising in exchange for capital. We love Globo as a partner and its scale. It literally controls about 80% of the eyes in Brazil. And we think our product offering will be substantial and significant.”
Super Group closes Betway operations
Betsson achieved record revenue for the second consecutive quarter in the third quarter, driven by growth in regions such as Latin America and Western Europe.
In Latin America, Betsson’s revenue increased by 34.2% to a record €69.4 million, driven by casino in markets such as Colombia, Peru and Argentina. Therefore, Betsson applied for a license in the Brazilian legal market and is active in this transition period.
Many operators are preparing for the launch in Brazil. But one candidate that withdrew from the process was Super Group’s Betway, which is one of at least 20 that withdrew.
On the earnings call following the third quarter on November 6, Super Group President and CCO Richard Hasson explained that the carrier was focusing on other markets where it could chart a path to profitability.
“Obviously, Brazil is being talked about a lot across the industry at the moment. This is a market where we are not currently moving in line with all the markets we have analyzed.”
Meanwhile, Kambi’s CEO, Werner Becher, highlighted the “exciting opportunities” for the bookmaker in Brazil. The company intends to go into operation early next year. Therefore, Kambi has already entered into a partnership with the operator KTO.