Betsson Acquires 75% Majority Stake in Suaposta to Expand Horserace Betting Presence in Brazil

Betsson AB, one of the best-established Nordic online gambling companies, has acquired 75% of Suaposta, the first race betting operator in Brazil.

Earlier this week, it became clear that Betsson had purchased a majority 75% stake in the only horseracing betting company that can legally offer online racing betting services in Brazil. For the time being, Betsson already has a significant presence in the horseracing sports betting sector thanks to its Racebets brand that has been one of the leaders in the segment both on the territory of the UK and in continental Europe.

According to media reports, the founders of Suaposta – Fernando Corrêa and André Gelfi – are set to keep managing the business. As Mr. Gelfi explained to Games Magazine Brasil, the deal with Betsson put the Brazilian company in what he called “an interesting position”, as it would be able to contribute to the further development of the land-based sports betting sector in the country.

Suaposta is operated by the Rio Grande do Sul Jockey Club (JCRGS) that has been present in the segment for more than a century. Betsson, on the other hand, has a well-established worldwide presence, as it currently holds gambling operating licenses in 12 jurisdictions. Currently, over 1,000 people are employed by the Nordic company, which also has more than 500,000 active users.

The Deal with Suaposta Is Not Officially Announced by Betsson Yet

Even though it has a relatively long history in the racing services in Brazil, Suaposta has not managed to evade the challenges in the sector including the difficulty to attract and retain younger betting audiences to the service. Towards the end of November 2019, the board of directors of JCRGS posted an editorial to express their concern with the lack of so-called “government incentive” in order to make sure that the future of the local racing industry is supported.

In addition, the editorial was aimed at paying attention to the legalization of sports betting services in Brazil. JCRGS noted that the legal sports betting operations would turn to another instrument of competition that would have to be faced by racing.

Betsson AB has not yet officially announced the deal with Suaposta but in any case, the acquisition would help it position well on the Brazilian market at a time when the global online betting industry is waiting for the Brazilian Government to finally set up its new sports betting regulatory framework. The new regulations would guarantee an equally laborious process of accepting and processing applications for legal betting services.

Lately, some lobbyists for the local betting sector have called for lawmakers to revise their existing tax plans. Under them, a 3% tax is set to be imposed on turnover generated by online betting services. In comparison, land-based betting operators are set to pay a 6% tax on their turnover.