Betway signals Brazil exit ahead of launch of regulated online gambling
Betway had applied for a licence to offer online gambling in Brazil.
Brazil.- Betway has announced that it will leave Brazil’s online gambling market just over a month ahead of the launch of regulations. The move comes despite Super Group’s brand having submitted an application for a licence to operate on the regulated market when it launches on January 1.
Betway was one of 93 operators and 205 brands to have applied for a Brazil online gambling licence before the initial window closed on October 1. Like all operators already active in the grey market who made applications, its application meant that it could continue operating during the transition period up to the launch of the regulated market.
The operator wrote to customers to advise them to withdraw any outstanding balances. Its email read: “Dear Betway customers, unfortunately we have decided we will not continue in the process to acquire the regulated licence offered in the country. We will work with you to return any outstanding balance. If you have an account that you would like to discuss, contact us by email and include your username.”
Betway belongs to Super Group and recently left the Swedish online gambling market. It gave no reason for why it has changed its mind about Brazil, but the market is likely to be highly competitive.
There also remain doubts about the future of the market, with some legislators making late proposals to ban online gambling before the regulated market even launches due to concerns over the impact on personal finances among vulnerable sectors of the population. The Supreme Court is currently weighing a legal challenge to the regulatory framework brought by the trade union CNC.
Meanwhile, the Ministry of Justice and Public Security (MJSP) has contacted 17 gambling operators to request details about how they will protect vulnerable consumers. The move comes ahead of the planned launch of a regulated online gambling market from January 1. Operators active on the grey market but have applied for licences have been allowed to continue operating during the transition period.
The operators, which include both multinational and local brands, were asked by the National Consumer Secretariat (Senacon) to provide a detailed outline of their measures on advertising, bonuses and restrictions designed to prevent minors from gambling. They must also detail monitoring and blocking systems in place to protect consumers at risk of indebtedness.
