Esportes da Sorte Acquires ST Soft, Hopes to Open a New Leaf

Brazilian betting operator Esportes da Sorte has successfully obtained authorization to operate in Rio de Janeiro, thanks to its acquisition of ST Soft-operated Apostou.com, which had already received licensing by the state’s lottery provider Loterj in November 2023. This move allows Esportes da Sorte to establish a presence in the lucrative Rio de Janeiro market despite ongoing legal challenges.

The Operator Faced Significant Controversy

Esportes Gaming Brasil, the parent company of Esportes da Sorte, acquired a majority stake in ST Soft. Loterj granted the company’s request to transfer the Apostou.com domain to its proprietary brands, esportesdasorte.com, and onabet.com, noting that the operator successfully met all legal requirements for this migration.

This new license comes at a critical juncture for Esportes da Sorte, which has been involved in a scandal due to its alleged association with money laundering and unlawful gambling operations. Last month, the company’s CEO, Darwin Henrique da Silva Filho, was arrested as part of an ongoing investigation, casting doubt over the company’s future.

Esportes da Sorte released a public statement reaffirming its commitment to responsible gambling, supporting the legal and reputable market, and protecting the interests of bettors. The company highlighted its support for regulating the sector despite its share of regulatory troubles and noted that a stable and transparent industry would benefit all stakeholders.

The New License May Prove Less Valuable than Expected

Despite securing a Loterj license, Esportes da Sorte may face challenges expanding beyond Rio. A recent appeal from the attorney general’s office contended that allowing state-licensed operators like Loterj to function nationwide without a federal license could result in double standards. This case comes at a critical juncture as the federal government gears up to enforce its new updated regulations on 1 January 2025.

Further complicating matters, Esportes da Sorte didn’t appear on the list of federal government-approved betting sites allowed to remain operational past the 1 October license application deadline. The company has filed an administrative appeal with Brazil’s Prize and Betting Secretariat, arguing that it meets all the criteria for a federal license.

Currently, Esportes da Sorte is the third-largest operator in the country, with a roughly 9.59% market share. However, Esportes da Sorte’s ability to maintain a foothold in Brazil’s expanding market remains uncertain due to ongoing criminal investigations, licensing issues, and regulatory uncertainty regarding its newly acquired certifications.