Online gambling and betting operator Betsson is strengthening its footprints in Latin America. The gambling operator has now become the single largest stakeholder in the Brazilian race betting operator company Suaposta.
According to a report published on Tuesday in the Games Magazine Brazil, Betsson has purchased a 75% stake in Suaposta. Suaposta also happens to be the lone operator authorized to offer online bets on horse racing.
The betting brand is operated by Rio Grande do Sul Jockey Club (JCRGS).
According to the deal, despite Betsson now becoming the largest stakeholder, Suaposta’s founders André Gelfi and Fernando Corrêa would be in charge of the brand’s local online operations.
Speaking to the Games Magazine Brazil, Gelfi said that the increased involvement of Betsson will put them in “an interesting position to contribute to the development of the onshore sports betting market in Brazil.”
Brazil is about to legalize gambling and Betsson’s deal with Suaposta will strategically benefit the company when the gambling market opens up in Latin America’s largest country.
Recently, the Bolsonaro government has softened its stand on legalizing sports betting and gambling; however, it has left to evangelical lawmakers to consider the move.
Betsson has not yet officially announced the stake acquisition deal.
A significant section of the Brazilian lawmakers are in favor of legalizing sports betting but so far they have not met with much success. Moreover, they have not been able to convince the majority during the ongoing consultation processes to revise the tax plans that mandate a 3% tax on online betting turnover. For retail betting operators, the tax is flat 6 percent.
Earlier this week, in his address at the Online Gaming Summit Brazil, Ministry of Economy under-secretary Waldir Eustáquio Marques Jr. confirmed that the tax revision is in the cards. He said that the government could reduce the higher tax figures – effectively about 30% and 35% of GGR – to a level that could be acceptable for all. He also said that this revision would not be put to public debate.
He also said that the government is working towards having a regulated sports betting market by June 2020.