Betway withdraws from Brazil ahead of official market launch
Betway has trimmed its sails in Brazil, deciding the exit the jurisdiction ahead of the official rollout of the market on January 1, 2025, the company shared in a private communication to registered account holders.
Poised to be one of the most lucrative sports betting and gaming opportunities in Latin America, this exit has surprised many, with Betway pulling the plug on a number of popular brands that were expected to pursue further growth and opportunities in Brazil’s burgeoning gambling industry.
Betway exits the Brazilian market ahead of launch
Among those are the Dafabet, AmuletoBet, Vera&John, and Arena Esportiva brands, which will no longer be part of the iGaming and betting landscape of the country. Betway has sent a notice to its customers in Brazil and all brands that have been authorized to run their services by the Ministry of Treasury.
Betway is effectively seizing all activities on Wednesday, November 13, Betway did not give an explicit reason as to why this has been decided. A statement cited by various media outlets simply said:
"Dear Betway customers, regrettably, we have decided that we will not proceed with acquiring the regulated license offered in the country. We will work with you to return any outstanding balances.
Therefore, the decision not to proceed with the regulatory bidding contrasts with the expectations of many bettors regarding the platform’s permanence in the national market."
Depositing options for players were suspended as early as last week, and the company has urged registered patrons to withdraw their account balances from all affected brands as soon as possible.
This is the second decision to trim down operations in nearly as many financial quarters. The company previously withdrew from the United States, with Super Group confirming that it would not pursue any further operations sports betting operations in the country.
Exiting Brazilian must have its financial rationale
The move seemed to be the right one, as the company’s Q2 results proved to post record-setting numbers, that may allow it to better pivot towards new and existing markets.
Regardless, Brazil could have been a strong opportunity for the company, at least on paper, unless Betway is aware of developments that would make the market just as difficult to eke a profit out of as the United States has been in terms of sports betting.
Betway is certainly the first big sports betting company to withdraw from the promising Brazilian market.