Stockholm-listed Betsson AB has acquired a 75% majority shareholding in Brazilian racing operator Suaposta, securing an early foothold in Brazil ahead of an anticipated regulated market opening.
Betsson management has confirmed its investment in Suaposta, but as yet has chosen not to disclose any deal terms or conditions.
Operating in partnership with Porto Alegre’s ‘Rio Grande do Sul Jockey Club’, Suaposta offers online wagering services on Brazilian racing authorised by Brazil’s Ministry Agriculture and Livestock.
The racing platform is former LatAm property of Bolsa Madrid gambling group Codere SA, which was acquired by the management team of André Gelfi and Fernando Corrêa in 2018.
Industry news source Games Magazine Brazil has confirmed that Gelfi and Corrêa will maintain leadership of Suaposta, retaining a 25% stake in Betsson’s new asset.
September trading saw Betsson governance sanction a secured private bond placement raising €90 million in working capital from institutional investors to support ‘ongoing expansion initiatives’.
Weighed down by increased European tax burdens, Q3 trading saw Betsson Group Chief Executive Pontus Lindwall emphasise broadening the firm’s ‘geographical spread’ across new unsaturated regions.
At present, industry leadership awaits the publication of the Brazilian government’s official decree on regulated fixed-odds betting services.
The government’s draft consultation published in September saw the government propose a 1% turnover tax on wagering services. Nevertheless, market updates report that taxation criteria may further be adjusted.
Industry analysts have underlined that the Brazilian government may enforce ‘monthly operating fees’ on sports wagering services on top of a fixed R$3m (£600,000) for a nine-year licence concession.
Further regulatory concerns have been raised by Brazilian professional sports bodies with regards to the lack of integrity provisions and protections detailed by the government’s draft frameworks.