Multiple Brazilian operators abandon their licensing submission process
Several big players in the gaming industry, including Arena Esportiva, AmuletoBet, and Vera&John (now owned by Bally's Corporation), have steered clear of head-to-head competition with giants like Flutter Entertainment and Bet365 in Brazil. Instead, they're focusing on profitable markets where they see a chance to rake in some serious dough. According to Super Group President Richard Gasson, their focus will be on Africa's markets, leaving the fierce Brazilian competition to others.
Now, let's discuss why it's a jungle out there for the little guys. To operate in Brazil, you need deep pockets. Not only do they slap you with a licensing fee of around $5.2 million per license, but you'll also have to splash out on state-of-the-art tech infrastructure to keep the regulators happy.
The regulatory framework is no walk in the park either. You've got to play by their rules, which include complying with anti-money laundering and Know Your Customer requirements. And let's not forget the mandatory responsible gaming mandates and security protocols or the complex technical standards for gaming platforms.
The question is, will the Brazilian market eat smaller operators alive? Perhaps they'll find a niche to thrive in, like focusing on specific games or services. Or maybe the legalization of land-based gambling in the future could offer them a lifeline.
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- Although AmuletoBet, Arena Esportiva, and other gaming companies are not directly competing with Bet365 and Flutter Entertainment in Brazil, the fierce competition and stringent requirements pose a challenge for smaller operators.
- The concentration of finance and the necessity for substantial investments in licensing fees, tech infrastructure, security protocols, and compliance with numerous regulations make the Brazilian market a daunting landscape for smaller operators.
- To survive in the competitive Brazilian gaming market, smaller companies might consider focusing on specific markets, games, or services or look to the possible legalization of land-based gambling for potential growth opportunities.
