Potential US Firms, Including DraftKings and MGM, Exploring Opportunities for Licenses in Brazil


Published on: April 3, 2024, 09:05h.

Last updated on: April 3, 2024, 09:05h.

Last year, Brazil implemented regulations for its online betting market, a move that is set to attract major players in the industry to Latin America’s largest economy.

The Brazilian flag flying against a backdrop of the sun
The Brazilian flag flying against a backdrop of the sun. DraftKings and MGM are among the US companies that could pursue online wagering licenses there. (Image: Pixabay)

It’s rumored that US-based betting giants such as DraftKings (NASDAQ: DKNG), MGM Resorts International (NYSE: MGM), and Hard Rock International are exploring opportunities to enter this populous region.

The list of nearly 135 pre-registrants for Brazilian online betting licenses includes major players in the industry, with US firms like Bally’s (NYSE: BALY), DraftKings, and MGM, as well as entities associated with European sportsbook giants Entain and Flutter Entertainment (NYSE: FLUT).

For domestic iGaming and sportsbook operators, Brazil’s appeal is clear. While US state-level legalization is slow, Brazil offers a ready market with a large population, positioning it as a key player in the global industry.

Brazil Could Boost Rush Street Interactive’s Appeal

Rumored to be a takeover target, Rush Street Interactive (NYSE: RSI) may see increased interest as Brazil opens up its online betting market.

Industry experts suggest that Brazilian regulators may favor locally-established companies and those with a presence in Latin America when granting licenses. With existing operations in Colombia and Mexico, Rush Street Interactive stands out as the only US gaming company meeting this criteria.

There is speculation that the company may expand to Argentina and Peru in the future. If successful in obtaining a Brazilian license, RSI could become an attractive acquisition target for a US-based operator eyeing opportunities in Latin America.

Last month, Bloomberg reported that RSI had discussions with potential buyers, including DraftKings, although the company has not officially confirmed these negotiations.

Brazil: The Next Frontier of Sports Betting

Brazil’s status as the largest economy and most populous nation in the region makes it an enticing market for gaming companies, with unique opportunities for growth.

With no Las Vegas-style casinos, the demand for iGaming is expected to be high among Brazilian bettors looking for access to table games.

On the sports betting front, Brazil’s passion for soccer is well-known, with a rich history in the sport. Additionally, other sports like the NFL and NBA are gaining popularity in the country, showcasing the diverse interests of its residents.

[ad_2]

Source link

Leave a Comment