Hard Rock Hotel Has Eyes in Brazil for New Casinos
The approval of a Bill for the legalization of physical casinos in Brazil may be a step up to significant developments in the country’s tourism and entertainment sectors. A proof of it is that the global CEO of the Hard Rock hotel chain, Jim Allen, is closely monitoring the progress of the legislation that could pave the way for casinos and bingos in Brazil.
Hard Rock, renowned for its hotels, restaurants, and casinos, is expanding its footprint in Brazil with a significant investment of US$1.35 billion. Currently, there are four Hard Rock Cafe locations in Gramado (RS), Curitiba (PR), Ribeirão Preto (SP), and Fortaleza (CE). The intent to expand underscores Hard Rock’s commitment to growing its presence in key foreign tourist destinations within the country.
The decision to bring Hard Rock hotels to Brazil is influenced by the dynamics of the timeshare segment, which is a form of property ownership where multiple individuals share the rights to use a property, such as a vacation resort or condominium, for specific periods each year. Historically, timeshare projects targeted C-class clients, offering simpler services in less popular destinations. The approval of a law in 2018 made timeshares more appealing in the country.
The Benefits of Legalization
Minister Sabino, along with Vice President Geraldo Alckmin, who also serves as the Minister of Development, Industry, Commerce, and Services, strongly supports the legalization measure. The Hard Rock chain, which operates several casinos in the United States, has encountered challenges in establishing itself in Brazil through partnerships. A major project involving eight Hard Rock hotels was derailed due to construction delays and investigations by the Federal Police involving Venture Capital Participações e Investimentos (VCI), the group’s then-partner in Brazil.
Legalizing casinos and other gaming activities that allow betting is expected to bring numerous economic benefits to Brazil. Casinos can generate direct jobs in construction, boosting local economies and enhancing national tourism. Additionally, the increased government revenue from taxes on these establishments could be reinvested in critical areas such as education, health, and infrastructure.
Why Brazil?
The Brazilian iGaming market is set to grow significantly, with a projected revenue increase of 24.1% this year, reaching US$1.97 billion by the end of 2024 and US$3.63 billion by 2028, maintaining a steady growth rate of 16.51% per year. Online Casinos, newly legalized, are expected to generate US$1.11 billion this year, but by 2028, sports betting is predicted to lead with US$1.71 billion, followed by Online Casinos with US$1.61 billion, and lotteries with US$0.31 billion.
According to a research by KTO casino on the unexplored potential of Brazil’s iGaming market, it has the potential to reach an estimated value of R$ 50 billion, driven by recent regulations and a growing interest in online games. With significant growth expected in the coming years, the Brazilian market offers attractive prospects for investment, driven by evolving regulations and increasing internet penetration in major urban centers like São Paulo and Rio de Janeiro.
The research also states that Brazil has a deep-rooted cultural affinity for gaming, which further supports the iGaming industry’s potential success. As consumer preferences lean towards faster transactions, updated game data, more live gaming options, and insightful post-event analysis, addressing these demands can further propel the sector’s expansion and user engagement in Brazil.
Overall, the legalization process and changing landscape are already opening up new investment opportunities for Brazil. This shift is expected to stimulate economic growth, creating new opportunities and industrial hubs that could propel the country towards a period of prosperity. As regulations evolve and industries such as iGaming gain traction, the country fosters a dynamic environment for both domestic and international investors.
