Gaming in Brazil

6/8/2021 Update:

Brazil is an attractive and untapped gaming market

  • Massive population of 210 million people making it the 6th largest population globally
  • We estimate casinos could generate between $9B to $17B of GGR under the current proposed legislation, which means Brazil would generate more GGR than every jurisdiction except the US and Macau
  • Due to stalled efforts of gaming expansion in Japan, Brazil may be the most fertile ground for gaming developers, investors and operators

Sports Betting has been legalized and regulations are being written

  • Sports betting was legalized federally on December 13, 2018 and the Ministry of Economy is progressing to write regulations within the allotted two-year time frame (which can be extended for up to an additional two years)
  • Brazilian President Jair Bolsonaro formally added sports betting to the country’s agenda in August 2020, signing a decree to add sports wagering to Brazil’s Investment Partnership Program (PPI) portfolio and national privatization program and appointing managers to lead the licensing process
  • On June 2nd 2021 the Chamber of Deputies approved the Provisional Measure (PM) 1034/21, which amends the sports betting law which now considers the payment of taxes on net revenue from collection, discounting income tax and prizes (GGR) – the measure goes to Senate
  • Licensure model, number of licenses and modality are not yet defined 

Key Supreme Court decision could legalize gambling

  • On April 7th the Brazilian Supreme Court will be addressing the constitutionality of gambling in Brazil; the voting is likely to become a pre-cursor to decriminalization of all gambling in Brazil
  • Several gaming bills have been introduced calling for the legalization of integrated casino resorts across 32 locations (throughout Brazil’s 27 states), as well local forms of gaming; the bills have been merged into one bill (Chamber of Deputies version) with the following specifications:
    • 10% gaming tax rate
    • One casino per state with a population of 15M-25M and three per state with a population greater than 25M
  • Among international gaming companies, Hard Rock appears most focused on Brazil as it continues to develop several hotels in the country; we expect Rio de Janeiro and Sao Paulo to be of keen interest to larger gaming companies such as LVS, CZR and MGM

Privatization of the National Lottery was mooted by the Supreme Court’s decision to end the federal monopoly opening significant expansion opportunities for the states

  • The Federal Supreme Court (STF) unanimously decided to end the federal government’s monopoly for operating lotteries in Brazil, which allows state lotteries to operate their own
  • Lottery operators and suppliers will be able to offer their platforms and services directly to the states and current operators can extend their offerings 
  • The IGT/SGMS consortium that was awarded the federal instant ticket concession announced its withdrawal due to delays on the part of CAIXA Economica to execute a contract by the concession deadline

The Spectrum Gaming team includes consultants and investment bankers, including on the ground in Brazil, dedicated to providing 360 degrees of services to developers, investors, operators, government agencies and other stakeholders.

Spectrum Gaming Capital released a report on Attracting Investment to a New Brazil Gaming Industry

Please click to access the reports in both English and Portuguese versions