Brazil’s Sports Betting and iGaming Market: A Major Opportunity
As the industry makes its way to SBC Summit in Lisbon later this month, one particular topic is likely to be discussed at length. With a population of more than 200 million people, making up the largest market in South America, the impending opening of Brazil’s betting market will bring a wealth of opportunities.
With 600 exhibitors in attendance at the Feira Internacional de Lisboa & MEO Arena, and with plenty of them making their way over from Latin America, SBC Summit will be an ideal show to discuss expansion plans in the region, and how to establish a competitive edge in such a fledgling and lucrative region. Should everything run to plan from here on in, the show is taking place at a very opportune moment, just over three months before the market opening in Brazil.
Brazil’s Regulatory Progress: Bill 3626/2023
Last December, Brazil’s chamber of deputies approved Bill 3626/2023 to regulate sports betting. Just over a week later, Law No. 14790 was published into Brazilian law. This outlines the regulations imposed on the online betting market in the country.
The market was initially set to be fully launched by the end of July, and while this did not materialise, the window for prioritised license applications closed in August, with 113 operators submitting requests before the deadline.
Major Players in the Market
The list of applications reads like a who’s who of the sports betting and iGaming industries, with bet365, Betfair, Betsson, Betway, Caesars and Sportingbet being among them. The operators that applied within the initial 90-day window, and before a deadline of 20 August, will have their applications processed before 1 January, as the market is forecast to finally launch at the outset of Q1 2025.
Lessons from the US: Early Market Leadership
A key thing to remember about Brazil though is that certain operators already have a footing in the market, with Betano, bet365 and Sportingbet among the market leaders, as they already chose to operate there prior to regulation. The Brazilian population are already very familiar with betting operators, with many of the country’s football teams already featuring official betting sponsors and shirt sponsors. As many as 15 of the 20 teams in the country’s Serie A football league have a sportsbook as their main sponsor.
That familiarity which players already have with certain brands is in some way reminiscent of the US sports betting markets which opened up after the Professional and Amateur Sports Protection Act (PASPA) was overturned in 2018. Despite the swathe of new operators that launched in the US across the next couple of years following the PASPA overturn, the likes of FanDuel and DraftKings were able to cement the top two positions in the market. This was due to the player bases and recognisability they had already established when previously operating only as daily fantasy sports sites.
Product Innovation: The Key to Success
The lesson that can be taken from that is that product innovation will be key to attracting players away from the sites they may already be used to playing with, or the new players that may have avoided betting pre-regulation.
In the US, FanDuel were using their marketing budgets to tell players about product specifics such as single-game parlays (which there is now a strong interest in across the market), rather than simply telling the consumer what sports betting is and how enjoyable the experience can be, which is what
too many new entrants focused on. This will be key to customer acquisition and retention, and it is something all operators moving into Brazil’s betting market will have to be aware of.
Betting App Expertise
One particular area where The Unit can provide expertise is in app development. This could particularly come in handy if Google were to resume its plans to offer real-money gaming apps, including sports betting, casino, and daily fantasy sports, on the Google Play Store. While these plans have been paused, it is still a key point of interest worth keeping an eye on.
What would make this even more significant is that Android phones are the predominant choice in Brazil. As of August 2024, 82.09% of phone users in Brazil use an Android device, with just 17.68% using iOS devices.
Apps can be a very efficient and cost-effective way of acquiring new users in Brazil’s betting market. The Unit are experts in sports betting app development and building world-class products for the industry. In a similar way to how product innovation will be important, offering localised apps which resonate with Brazil-based players will also be key, rather than simply copying what seems to have worked well in Europe.
Again, this is a lesson to be taken from the US, where operators were in such a rush to take their offering to market that they did not have time to tailor their apps to US-based players. Consulting with a team of experts who can advise and develop a functioning, market-specific app could provide the all-important edge that will make the difference in the early stages following a launch.
Learning from Other Markets in LatAm
Aside from Brazil’s betting market, there are other markets in LatAm which we are keeping a very close eye on. This includes Peru, where the regulated market launched in February. Like with Brazil, several notable international operators were already operating in Peru, but the market is now one of the most burgeoning territories in the industry.
Chile and Uruguay: Next Markets to Watch
Chile has come close to regulation in recent times, with the country’s Chamber of Deputies approving a bill to regulate iGaming in December 2023. However, an intervention from the Supreme Court mandated the country must have a 12-month cooling off period for grey-market operators, and the exact terms of regulation are still to be established. Having said that, Chile is still a point of interest and much progress has been made after years of inactivity.
Another country where developments are worth watching is in Uruguay. The Chamber of Senators approved an Online Gambling Bill in August 2022, but regulation is yet to come to fruition.
Let’s Discuss in Lisbon
The Unit team will be at SBC Summit to discuss how we can help potential partners in LatAm, with a particular view to mapping out plans for Brazil. When the market opens, we will be working to ensure we can provide our best-in-class software development and marketing services to both new entrants and existing operators. We always relish the chance to catch up with our partners and industry friends, and this show could be incredibly lucrative for all interested parties.
If you would like to schedule a meeting with The Unit team and discuss how we can provide our services and expertise to assist with your plans for LatAm, or for any other matter we can potentially help with, please get in touch here.
