Economist Adam Patterson believes high regulatory costs will drive an M&A “boom” for Brazil's sports betting market.
Brazil passed Bill 3,626/2023 to regulate sports betting and igaming on 21 December. President Luiz Inacio Lula da Silva then signed the bill into law later that month.
The country is currently in the process of rolling out its regulations. Licence fees are expected to cost BRL30m (£4.6m/€5.4m/$5.9m) for up to three brands.
Normative Ordinance No 722 outlined regulations on the technology and security requirements of betting systems. Operators must gain certification of their systems from accreditation entities recognised by the ministry of finance. They must also keep their systems constantly updated to maintain compliance.
With operational fees expected to be costly, smaller companies could face obstacles if they are to operate in Brazil.
Patterson is an economist and partner at Redirection International, which specialises in M&A and has a team working in Bra..