Zona de Azar Brazil – Brazil: Media Companies Sought by Foreign Gambling Establishments

Brazil.- May 7, 2024 www.zonadeazar.com  Conversations are underway between media conglomerates to create strategic alliances and enter the Brazilian “gambling” market, a nomenclature for online gambling companies.

According to information from the newspaper Estadão, the most promising negotiation involves Grupo Bandeirantes de Comunicação and OpenBet, which forms part of the American corporation Endeavor.

OpenBet is responsible for processing the majority of sports matches held in the United States and Canada, and 65% of matches held in the United Kingdom.

Possible associations

In Brazil, for international online gambling operators to operate, a local partner must hold at least 80% of the shares. However, the search for Brazilian partners is not motivated solely by this requirement.

José Francisco Manssur, former special advisor to the Hacienda Ministry, mentions that “foreign companies are looking for an ally with a deep understanding of the national market”.

For media organizations in Brazil, this represents an opportunity to diversify their income and join a promising sector. In November, the Ministry of Hacienda began the authorization process for entities interested in joining the betting segment.

José Francisco Manssur.

The license, which lasts three years, has a value of R$30 million. Even though the government only received 30 requests, it ended up receiving 130.

Two corporations, some North American and some European, approached Globo to form companies. However, the conglomerate also registered with the Ministry of Hacienda through DFS Entretenimento, owner of Cartola Futebol Clube.

A source informed Estadão that “Globo, in reality, does not need a partner, as it has the control of the media sector in Brazil, it has the know-how of Cartola and has the freedom to select its partners”.

Sports betting rules

Approved in 2023, the Apuestas Law prohibits companies in the poser sector from granting or financing retransmission rights for sporting competitions. According to the planning of the Hacienda Ministry, the first authorized names will be announced in July.

So, standards are being established, including one that prohibits the use of credit cards by players. Therefore, the Treasury promises to reveal all regulatory standards for the sector in July.

Sports Betting

Manssur highlighted that “1.5% of Brazilians are compulsive gamblers, an important figure that is being considered in policy formulation”.

La Rede Globo, through a statement, confirmed that DFS is analyzing possibilities in this market. “We are evaluating the potential of sports matches in Brazil,” the newspaper reported. On the other hand, Band and SBT have not yet been pronounced in this regard.

Edit @_fonta   www.zonadeazar.com