Despite the growing momentum of the Brazilian gambling market, Spanish gambling operator Cirsa has recently made it clear that it will not include Brazil in its expansion plans for the time being, citing the immature local infrastructure, unstable licensing system, and high compliance costs.
In the prospectus for its planned IPO, Cirsa explicitly excludes Brazil from its short-term expansion scope. The document notes that although Brazil has officially established a regulatory framework for online gambling, the market is still in a "transition period," with most platforms operating without a license. Moreover, these unlicensed platforms not only have lower compliance requirements but also enjoy a cost advantage over licensed operators.
Cirsa added that it has not made any specific decisions regarding entering markets in neighboring countries, including Brazil, and is continuously monitoring developments in other Latin American markets such as Chile, Uruguay, Jamaica, and the Bahamas.
It is worth noting that, despite Cirsa's cautious stance, tax revenues from the Brazilian gambling industry reached 472 million Brazilian reais (about 87 million US dollars) in the first five months before 2025, demonstrating significant market potential.
As of now, Cirsa's Latin American business is concentrated in Panama, Colombia, Mexico, the Dominican Republic, Peru, Costa Rica, and Puerto Rico, collectively contributing 32% of the company's revenue in 2024, with Panama being the strongest market, accounting for 9%.
The prospectus also points out that the overall gambling scale of Cirsa's active and target markets is estimated to be 33 billion euros, expected to increase to 40 billion euros by 2028. This IPO aims for a valuation of up to 2.5 billion euros, potentially making it the second-largest listing in Spain this year.
