Betsson acquires 75% stake in Brazilian racing operator
Nordic firm makes investment ahead of expected reregulation of Brazilian sports betting market
Betsson has acquired a majority stake in Brazilian online horserace betting firm Suaposta as the operator looks to tap into the growing Latam market.
The Malta-headquartered firm acquired a 75% stake in Suaposta which a spokesperson said put Betsson “in the best position” for the upcoming reregulation of the Brazilian sportsbook market.
Under the terms of the agreement, Suaposta founders Andre Gelfi and Fernando Correa will retain a 25% stake in the business, remaining as CEO and CFO respectively and running the business on behalf of Betsson.
Suaposta is currently the only online operator authorised by the Brazilian government to offer horseracing betting in Brazil and is run by the Rio Grande do Sul Jockey Club (JCRGS).
It offers betting on 600 racetracks, together with live streaming of races every five minutes.
The Suaposta brand relaunched in 2018 following a management buy-out from its previous owners, Latam-focused operator Codere.
Betsson said Suaposta’s use of Google and Facebook in its marketing, together with local online payment methods, was “highly valuable” ahead of the launch of the regulated Brazilian market.
Suaposta CEO Andre Gelfi said Betsson was “perfectly positioned” to take the Suaposta brand into the new online sports betting market.
M&A firm Partis, which brokered the acquisition, said the deal provided an “excellent outcome” for both parties.
Rob Dowling, Partis co-founder, added: “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”.
Shares in Betsson parent company Betsson AB fell by 1.27% in early trading to a price of SEK 42.75.
Sports betting regulations are currently still being finalised following several consultations taking place earlier this year, however the Brazilian government previously said it was looking to “fast-track” the launch of the market by as early as 2020.