LATIN AMERICA IN FOCUS
FA clears Paquetá of match-fixing allegations, Brazil sports betting delivers big tax contributions, Rush Street has its best quarter ever and more.
Brazil Soccer Star Paquetá Avoids Match-Fixing Ban
West Ham and Brazil soccer player Lucas Paquetá has avoided sanctions for match-fixing after the English Football Association’s (FA) independent regulatory commission found insufficient evidence to support the charges.
In May 2024, Paquetá was charged with four breaches of FA Rule E5.1, with the FA alleging he deliberately received four yellow cards in Premier League matches while playing for West Ham between November 2022 and August 2023.
Paquetá has strongly denied purposely collecting bookings to influence the betting market, and the FA has now cleared him of match-fixing after failing to prove the allegations.
In an Instagram post, Paquetá said: “I can’t say anything more now, but I also can’t express how grateful I am to God and how eager I am to return to playing football with a smile on my face.”
Brazil Betting Generates $687.5 Million in Tax Over First Six Months
In the first six months of regulated betting in Brazil, the market generated BRL3.8 billion ($687.5 million) in tax revenue, according to data from the Federal Revenue Service (RFB).
On July 24, the RFB published its monthly report outlining the total tax revenue collected by President Luiz Inácio Lula da Silva’s Brazilian government.
In June, tax collections from the Brazilian gambling sector amounted to BRL764 million, representing a 6.1 percent decrease compared to May’s BRL814 million.
Udo Seckelmann, head of gambling and crypto at Brazilian law firm Bichara e Motta Advogados, told iGB: “While the market is still in its initial phase of consolidation, the data already demonstrates that regulation is a more effective path than prohibition or informality.”
Hanzbet Joins Forces with BigBet After Conflict with License Holder
Following a dispute that initially led to a suspension of its operations, the Hanzbet brand has now announced a strategic partnership with BigBet to jointly operate in the Brazilian betting market.
Earlier this month, it was announced Hanzbet would suspend its activities in Brazil’s licensed betting market following a dispute with its local license holder, EA Entretenimento e Esportes Ltda.
However, on July 28 Hanzbet announced it had formalized an agreement to operate in partnership with BigBet, one of three brands currently operating under Big Brazil’s license.
Hanzbet CEO Gabriel Martins voiced his excitement, saying: “We have always conducted our actions with clarity, seriousness and loyalty. We will continue, now stronger than ever, alongside a great brand like BigBet.”
Rush Street Interactive Achieves Quarterly Revenue Record
Rush Street Interactive has announced it achieved a quarterly revenue record of $269 million in Q2, a 22 percent year-on-year increase.
Net income was also a quarterly record at approximately $29 million for Rush Street Interactive, which is active in regulated LatAm markets such as Mexico, Colombia and Peru.
Monthly active users in LatAm across Q2 stood at 403,000, nearly a 42 percent year-on-year rise, though average revenue per monthly active user (ARPMAU) fell from $38 to $30.
Rush Street Interactive attributed the drop in ARPMAU in LatAm to its bonusing strategy in Colombia, which it implemented in response to the country introducing a temporary 19 percent value-added tax on online deposits for betting.
Investigation Against Esportes da Sorte Archived
The investigation into the operator Esportes da Sorte for money laundering has been archived by the Pernambuco Attorney General’s Office (PGJ-PE), according to BNL Data.
Last year, Esportes da Sorte owner Darwin Henrique da Silva Filho and his wife were arrested over allegations of illegal betting and money laundering, with the company later granted an injunction to allow it to legally operate in the newly regulated Brazilian betting market.
The PGJ-PE has now closed part of the investigations into Esportes da Sorte, deeming there’s no legal basis to continue pursuing the operator for money laundering offences.
