Betsson AB, listed in Sweden, has reported that it has acquired a majority shareholding of 75 percent in Brazilian racing operator Suaposta, gaining an early foothold in Brazil ahead of planned regulated market opening.
Betsson management confirmed its investment in Suaposta, but has not yet chosen to disclose any terms or terms of the deal.
Operating in collaboration with the’ Rio Grande do Sul Jockey Club’ of Porto Alegre, Suaposta provides Brazilian racing online wagering services, approved by the Ministry of Agriculture and Livestock of Brazil.
The racing company is the former LatAm asset of the Codere SA gaming group Bolsa Madrid, which was purchased in 2018 by André Gelfi and Fernando Corrêa’s management team.
Games Magazine Brazil has reported that Gelfi and Corrêa will maintain Suaposta’s leadership, maintaining a 25 percent stake in Betsson’s new asset.
Trading in September saw Betsson governance approve a stable private bond issuance raising € 90 million in working capital from institutional investors promoting’ continuing growth initiatives.’
Weighed down by rising European tax burdens, Betsson Group Chief Executive Pontus Lindwall’s Q3 Trading stressed the expansion of the company’s ‘geographic spread’ into new unsaturated regions.
Currently, industry leadership is awaiting the release of the official decree on regulated fixed-odds betting services from the Brazilian government.
The government proposed a 1% turnover tax on wagering products in the preliminary consultation released in September. Nonetheless, industry reports suggest that the conditions for taxes can be further modified.
Industry analysts have pointed out that the Brazilian government will impose ‘monthly operating charges’ on sports wagering facilities, in addition to a fixed R $3 million (£ 600,000) for a nine-year licence.
Brazilian professional sports bodies have raised further regulatory concerns regarding the lack of integrity provisions and protections detailed in the draught frameworks of the government.