Betsson acquires stake in Brazilian sports betting operator
Betsson has confirmed that it has acquired a 75% stake in the Brazilian sportsbook operator Suaposta, ahead of the country’s government passing sports betting regulations.
While the terms of the deal are yet to be disclosed, the Stockholm-listed operator told iGamingBusiness.com that the deal would put Betsson in the “best position for the upcoming and expected re-regulation of the Brazilian sportsbook market”.
Suaposta claims to be the only brand currently licensed to offer sports betting in Brazil. It operates in partnership with the Rio Grande do Sul Jockey Club, which is licensed by the Brazilian Ministry of Agriculture, Livestock and Food Supply.
The brand was relaunched in 2018, following a successful management buy-out from Codere.
Partis, the consultancy and M&A advisory practice that served as exclusive advisor and broker to Supaposta for the transaction noted that the business offered a range of assets that would be highly valuable for Betsson. These include access to local payment methods and established search and social marketing channels.
Suaposta’s founders André Gelfi and Fernando Corrêa will continue to run the business following the acquisition, retaining a 25% stake in the brand, remaining chief executive and chief financial officer respectively.
“We are delighted to announce this agreement with Betsson Group, who are perfectly positioned to enable our business to realise its full potential in the newly regulating Brazilian market,” CEO Gelfi commented. “We are hugely grateful for the role Partis played in bringing this transaction together.”
Partis co-founder Rob Dowling added that the deal provides “an excellent outcome” for both parties.
“Suaposta’s founders are excited to maintain an active role and to realise their significant growth plans, and Betsson Group have gained unrivalled access into the emerging LatAm online gaming market.”
News of the deal comes with the Brazilian Ministry of the Economy’s Secretariat of Evaluation, Planning, Energy and Lottery (SECAP) putting the final touches to the decree to regulate sports betting. This could be introduced in the country’s legislature this month.
The conditions to be imposed on operators remain unclear, with a consultation that ran in September proposing a 1% tax on turnover, though subsequent reports have suggested this will be increased to 3% for online operators. Retail betting looks set to face a 6% turnover tax.
As part of the licensing process, operators will have to sign a declaration stating they have never operated illegally in a regulated market.