In late 2023, Brazil legalized sports betting. Wagering is expected to start soon, possibly this quarter or the next, as regulators finalize licenses. Brazil appears to be emerging as the next hotspot for the sports betting boom, potentially surpassing the United States.

Tom Waterhouse, the principal of Waterhouse VC, said that he thinks there’s a lot of opportunity in Brazil. The report states that 140 operators are eyeing entry into Brazil. They face a license fee of R$30 million or US$6 million, along with a requirement for a local 20% shareholder.
Waterhouse VC is a specialized fund in sports betting investments. Since its launch in late 2019, it has achieved an impressive average annual return of 111%.
Waterhouse added that the situation in Brazil will be akin to the United States. Sportsbook operators may not see profits for a while as they focus on expanding their market presence, akin to a land grab strategy.
Sportradar is a betting data and analytics firm. According to them, even though Brazil is not the same size of the United States market, it is still a big prize. The US is about a US$10.8 billion gross gaming revenue or GGR legal market. Regulators estimate that the Brazilian gray market for sports betting currently generates around US$2.2 billion in gross gaming revenue (GGR). They anticipate that this figure will surge to US$5.4 billion once the market is regulated.
Carsten Koerl is the CEO of Sportradar. He stated last month that soccer is the driving force behind this opportunity. Their CONMEBOL deal is very supportive. They are looking into strengthening this portfolio to attack Brazil for years.
The legal sports betting market in Brazil isn’t open yet. The government is anticipated to commence awarding licenses either this quarter or the next. As per a briefing paper from Mayer Brown’s law firm, once this occurs, operators will face a 12% tax on gross gaming revenue (GGR), while bettors will be subject to an income tax of 15% on their net winnings.