The House Wins
Mergers, acquisitions and fundraising in the Brazilian fixed-odds betting market, post-regulation
The thesis
The 2023 law created a regulated betting market from scratch, with a licence fee of thirty million reais for up to three brands. There is a single Brazilian transaction with audited data, and it was loss-making. The rest of the document is built from there, on the targets, the buyers and the structures that still have no precedent
What the study establishes
In the first year of the regulated market, R$220.6 billion was deposited, with gross gaming revenue of R$36.9 billion and a hold of 16.7% of deposits
By the antitrust test the market is not concentrated, with an index of 898 against the 1,500 threshold, which explains the fast-track clearance of every transaction in the sector
Eighty-five authorisations cover 188 brands, an average of 2.2 per licence against the cap of three, which leaves sixty-seven brand slots idle in the market
Contents
- The market the law created
- The economics no one publishes
- The targets and the buyers
- Five structures without precedent
- What to do with it