Betsson AB has secured a 75% majority stake in Suaposta, a Brazilian race betting operator. The deal’s details are yet to be revealed, but it would put the Swedish iGaming brand in an ideal position if Brazil’s market opens up as expected.
Foot in the door
As things stands, Suaposta is the only operator in the South American country that offers legal wagering on horse racing. After being bought out by Codere in 2018, it relaunched. The brand is partnered with the Rio Grande do Sul Jockey Club, licensed by the Brazilian Ministry of Agriculture, Livestock and Food Supply.
Suaposta co-founder and CEO, André Gelfi, said: “We are delighted to announce this agreement with Betsson Group, who are perfectly positioned to enable our business to realise its full potential in the newly regulating Brazilian market.”
Both Gelfi and Fernando Corrêa, who also founded the company, will continue with their current business roles. The duo retained a quarter of stakes in the brand. Corrêa is Suaposta’s CFO.
iGaming in Brazil: where does it stand?
At the moment, Brazilian authorities are putting together the finishing touches for an order to regulate sports betting. It’s possible that it could make its way into the country’s legislation before 2018 is over.
Everybody hoping to obtain a licence will have to sign a declaration stating that they’ve never operated illegally in a regulated iGaming market before.
Tax is yet to be determined for certain. In a September consultation, it was proposed that 1% on turnover should be owed by operators. But reports have since speculated that this will go up to 3%. Meanwhile, retail betting operators look set to owe 6% of their annual turnover.
Last December, Clever Advertising Group’s Head of Marketing Marcos Oliveira said that affiliates will form a “huge part” of iGaming growth here. In particular, he referred to their role in sports betting.