Brazil nuts
Regulation sees Brazil’s gambling sector grow exponentially, Apuesta Total growth, Chilean demands +Más
The number of iGaming companies in Brazil has grown by 735% since 2021.
In +Más: Loterj accreditation extension, Peru tax raids.
Peru: Apuesta Total grew by 30% in Q124, says CEO.
Chile: operators demand modernization of the SCJ.
Colombia: Coljuegos transfers $5.8m to the Ministry of Science.
You’re part of something way bigger.
Brazilian growth
All rise: The number of online betting companies in Brazil increased by 734.6% between 2021 and April of this year, according to a survey by Datahub, prepared exclusively for CNN. According to the data analysis platform’s research, in the first four months of 2024 alone the same number of companies were opened as in the whole of 2022.
In 2021, there were 26 companies in Brazil whose main activity was gambling and online betting.
By the end of 2022, there were 79 companies, a jump of 204%.
Today, there are 217 companies.
Regulation, that’s what you need: Datahub account executive Felipe Mesquita told CNN that these numbers skyrocketed with regulation. “Now that gaming is ‘blended’, aligned with the government and laws, it tends to provide more security to companies and consumers and naturally tends to grow,” he explained.
According to the Ministry of Finance, in one month at the end of 2023, 134 companies expressed an interest in working within Brazil’s betting sector.
Abroad church: With the structuring of the market, the country also attracts attention abroad. According to Datahub, two foreign companies sought to operate in Brazil in 2023. In 2024, that number increased to five.
“Although modest, this increase is significant and indicates a growing interest in the Brazilian market, encouraged by new legislation that can offer greater predictability and legal security,” the study noted.
These companies are registered with the Federal Revenue, implying compliance with Brazilian fiscal and regulatory requirements, even if they are headquartered in other countries.
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+Más
Window of opportunity: The State Lottery of Rio de Janeiro (Loterj) has extended the accreditation period for companies wishing to operate fixed-odds sports betting and online games in the state for another 60 days.
The extension began last Friday, June 14, and all clauses and conditions of Accreditation Notice No. 01/2023 remain in effect.
The state accreditation costs $929k, while taxes represent around 5% of profits; this compares with $5.5m and 12% respectively at a national level.
Taxman: The National Superintendency of Customs and Tax Administration of Peru (Sunat) has carried out a coercive collection operation in 12 casinos in various districts of Lima to recover an estimated tax debt of $794k.
Bolivia’s Gaming Control Authority (AJ) conducted two operations in Cochabamba this month, resulting in the seizure of several slot machines and the arrest of two individuals.
The Peru Gaming Show, held last week in Lima, saw more than 8,000 visitors, with talks focussing on online regulation and the needs of iGaming operators in Peru and Latin America.
Apuesta Total growth
At the double: Apuesta Total grew by 30% in the first quarter of 2024 compared to the same period in 2023, CEO Gonzalo Pérez revealed in an interview with Peru’s Revista Casino. The executive said the company has been “maintaining double-digit growth rates for many years.”
He also referred to the impact of the opening of remote gaming and betting in Peru and how this scenario will attract new operators.
According to Pérez, the coming years will continue to be growth years for the betting market in Peru, thanks to the constant entry of new players.
He also foresees a reorganization in the market at the supply level, as some operators are leaving because margins are shrinking and others are arriving due to the stability and predictability enjoyed by the market thanks to regulation.
Taking responsibility: Pérez said responsible gaming is part of the company’s brand identity because, beyond including the message of #ApuestaResponsable, “we do not emphasize encouraging our customers to idealize prizes from their bets; we do not propose the bet that will change your life, but rather we focus on highlighting that playing is another entertainment option.”
SCJ modernization demands
Suits you: During the first half of this year, Carlos Baeza, legal advisor to Betsson, Betano, Coolbet, Latamwin, Betwarrior and 1xBet, filed two lawsuits against the Superintendency of Gaming Casinos (SCJ) and the Undersecretary of Telecommunications (Subtel) for exceeding their powers in 2023.
He also filed another lawsuit against the state lottery Polla Chilena de Beneficencia for unfair competition.
All this followed the Supreme Court ruling on September 12, 2023, which blocked 23 betting sites, including the above-mentioned operators.
Although the industry continues to function, this ruling served its detractors to label them as illegal.
This is the modern way: Faced with this scenario, Baeza changed his strategy and asked: What factors caused this scenario? What should be done? And what is missing to recover lost ground? Subsequently, he deemed two modifications necessary:
First, modernize the SCJ and, second, provide real figures of the impact of casino platforms on Chile, but through an independent body.
For Baeza, the SCJ has an “anachronistic” institutional design (from the early 80s) and is more political than technical.
Today, “the superintendencies are regulatory agencies, collegiate and independent bodies, that is to say, they are autonomous and without political burden,” he said.
Operators hope to include this proposal to modify the SCJ in the bill that is currently in the Senate.
A taxing problem: Baeza claimed the Ministry of Finance has underestimated the importance of the industry worldwide, especially regarding the impact it can have on tax collection.
He added that, today more than ever, it is necessary to measure the real impact of the online platform industry: the number of competitors, revenues, players and potential tax contribution.
However, the lawyer acknowledged the association does not manage figures from its members.
Coljuegos transfers
Give me it: In the first four months of the year Coljuegos transferred ~$5.8m to the Ministry of Science and Technology of Colombia to promote and strengthen research, scientific development and technological innovation in the country, according to the regulator’s president Marco Emilio Hincapié.
The official added that the transfers came from the total collection of the luck and chance games sector, which was estimated at being over $76.6m between January and April this year.
He explained that towards the end of the year, the entity expects to have transferred about ~$17.3m to the ministry, which is equivalent to 12% of its total budget.
And there’s more: These contributions are in addition to those already made by Coljuegos to local health funds ($16.8m), departmental funds ($2.5m), the Administrator of the Resources of the General Social Security Health System ($60.7m) and the Territorial Entities Pension Fund ($6m).
In total, in the first four months of 2024, Coljuegos has transferred $92m for health and scientific research, and it is expected to reach $234m in contributions by the end of the year.
Publication schedule
This is the English version of the LosIngresos+Mas newsletter published yesterday (June 19).
An +More Media publication.
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