Brazil
Inside Brazil’s race to the finish line
The buzz around a fully-regulated Brazilian sports betting market has been amplified since the passing of legislation in late December 2023. As operators await the publication of a regulatory framework later this year, many industry stakeholders are trying to prepare themselves for meeting licensing requirements.
Marc Crean, OpenBet’s VP for Latin America and Canada, shares predictions for the months ahead.
After a two-decade wait for a legalised gambling market, Brazil’s president, Luiz Inacio da Silva, has now sanctioned law 14790 to approve gambling regulation in the booming LatAm market. The government has been engaging key stakeholders and giving regular and transparent updates over recent months and the path to regulation looks optimistic with a thriving market is in sight.
There are strong opinions from all sides about Brazilian regulation and how it should look, yet there is great potential to create new revenue streams and jobs for the country, which is generally viewed as the jewel in the crown of LatAm’s sports betting market. However, before the market can operate smoothly, sustainably, and safely, the serious issues of match-fixing, money laundering and responsible gaming must be ironed out. A highly publicised investigation concerning allegations of widespread match-fixing is still ongoing, with seven professional football players charged for alleged crimes in the scandal.
The government wants to establish a market that provides sports betting entertainment to Brazilians, generates revenue for the country and protects local players and institutions as quickly as possible, but the specifics of the regulations will change over time as technology develops. The framework must be flexible enough to cope with changing demands and stay one step ahead of illegal operations when it is finalised.
One introduction is a 12% GGR tax on operators, which is a sustainable rate and in line with other successful regions, as well as a 15% tax on bettors’ net gains. This is expected to generate R$3 billion in revenue for the Brazilian government each year. However, while the government will struggle to satisfy all stakeholders, taxes are not unique to Brazil nor to sports betting. Most market estimates have Brazil as third or fourth in the world in terms of size, and the proposed cost of a license is in line with UK and US costs.
What is clear is that Brazilian regulators must exercise caution on a proposed tax on player winnings. There is room to do this successfully based on how the tax imposition is implemented. It is in the law, so it is going to be in place, but the devil is in the details. It has been seen again and again how this type of tax, whilst well-intentioned, can reduce channelisation and end up pushing people to black market sites.
Shaping the industry of the future
Brazil has its own unique cultural, social and economic dynamics that will have a major influence on product, operations and marketing activities. Regulation will create a massive amount of local opportunity both on the supply and the operator side of our industry. However, people tend to overestimate the need for local product and underestimate the need for local marketing and operations. This invariably creates opportunities for local companies and I think this is healthy for our industry.
Early-adoption, innovation and an unparalleled consumption of social media are three local dynamics that will have a massive impact on the shape of the industry. As always, companies with boots on the ground will be better placed to understand and tap into these areas.
When you add in the size of the market and the passion for sports, we can expect to see a lot of new ideas and innovations coming out of Brazil once the market fully opens up and starts to flourish.
BiS SiGMA Americas
GR8 Tech Brings “Best Workplace 2024” and Fresh LatAm Insights from BIS SiGMA Americas
GR8 Tech’s participation at the recent BIS SiGMA Americas event held in São Paulo was quite successful, highlighted by winning the ‘BEST WORKPLACE 2024’ award at the SiGMA Americas Awards and holding over 150 meetings with operators and other stakeholders. These interactions have laid a solid foundation for GR8 Tech’s strategic expansion in the region and provided the team with significant insights into the evolving Latin American iGaming market.
A Closer Look at the Brazilian Market and Wider LatAm
“Brazil is not synonymous with Latin America. Each country on the continent has its own unique characteristics,” Evgen Belousov, GR8 Tech CEO.
The most important thing to understand in the LatAm region is that it’s very diverse. There are significant cultural and operational differences that necessitate a localized approach. For example, “Brazil’s rhythm is distinct; life starts in the afternoon, and business interactions reflect this laid-back pace. To thrive here, understanding and integrating into the local lifestyle is essential.”
Belousov further discussed the Brazilian market’s competitive nature, highlighting retention strategies’ crucial role. “The churn rate is high as players frequently shift between operators lured by aggressive marketing. Hence, having robust retention mechanisms, such as real-time tools and enticing bonus mechanics, is crucial to maintaining a loyal customer base,” he added.
Yevhen Krazhan, CBDO, addressed trending compliance and market preferences. “Regulation is a hot topic, with a keen focus on product compliance. Moreover, while classic sportsbooks saturate the market, emerging interests lie in areas like fantasy sports and social gaming, which present new opportunities for differentiation and growth.”
Thomas Carvalhaes, Senior Business Development Manager for the Latin America region, provided his expertise during the panel discussion “Understanding the demands and evolution of the B2B market”, highlighting the demand for localization and intuitive technology. “In Latin America, where many markets are still learning the ropes of iGaming, the simplicity of the technology is key. Products need to be user-friendly to ensure they meet the expectations of a clientele that values straightforward and engaging gaming experiences,” Carvalhaes explained.
Future Directions and Engagements
Building on the insights and achievements from BIS SiGMA Americas, GR8 Tech is actively expanding its presence in Brazil and LatAm, establishing its reputation as a key player in the region. The company is also exploring opportunities in other global markets, with Asia as the next target at SiGMA Asia, scheduled for June 3-6 in Manila, Philippines. This upcoming event presents another fantastic opportunity for GR8 Tech to demonstrate the capabilities of its flagship GR8 Sportsbook platform and forge new partnerships in another exciting and diverse region. We invite all our partners and clients to stay tuned, following our updates at https://gr8.tech/.
Kiron Interactive, a leading provider of virtual sports and numbers games, has announced a new partnership with EstrelaBet, one of Brazil’s most prominent online gaming operators, to deliver its innovative virtual sports portfolio to the operator’s extensive player base.
The agreement sees EstrelaBet, the sponsor for nine football teams in Brazil, integrate Kiron’s popular virtual sports games into its online offering. Players will now have access to an exciting range of virtual sports, including football, horse racing, and motorsports, enabling 24/7 betting opportunities across a wide variety of fixtures and markets.
Kiron’s virtual sports games are designed to replicate the excitement of real sports betting, with a staggered schedule of events providing opportunities for in-play betting every two minutes. The games are fully customisable, allowing EstrelaBet to tailor the content, odds, and frequency of events to meet the preferences of its local audience.
EstrelaBet is a leading online gaming operator in Brazil, offering a wide range of sports betting and casino products to players across the country. Founded in 2019, the company has quickly established itself as one of the top three operators in the market.
The integration of Kiron’s virtual sports content is expected to significantly enhance EstrelaBet’s online offering, providing its players with engaging new betting options and driving revenue.
Steven Spartinos, Kiron Co-CEO, said: “We are delighted to partner with EstrelaBet, one of the biggest names in the rapidly growing Brazilian market. This agreement underlines the appeal of our virtual sports offering and its ability to drive player engagement and growth for operators in markets worldwide.
“We look forward to working with the EstrelaBet team to deliver an exceptional virtual sports betting experience to their players and to supporting the continued expansion of their business in Brazil.”
Fellipe Fraga, Chief Business Officer at EstrelaBet, said: “It is a pleasure to have this partnership with Kiron, allowing us to offer our clients more options for entertainment in iGaming, using new technology and an advanced product.
“We are always looking for ways to enhance our offering and provide our players with the best possible betting experience, and we are confident that Kiron’s virtual sports games will be a valuable addition to our portfolio.”
Brazil
FBMDS, Planet Invest and EverPlay Score a Fantastic Goal in a Revolutionary Partnership Involving Ronaldinho Gaucho
FBMDS, a leader in online casino game development, has joined forces with Planet Invest and EverPlay in a partnership to revolutionize the iGaming landscape. This strategic alliance involves the iconic Brazilian football player Ronaldinho Gaucho and sets new benchmarks for innovation and excellence, focusing on the creation of extraordinary online gaming experiences for Latin American markets, with an emphasis on Brazil.
FBMDS, Planet Invest and EverPlay are committed to raising the level of the global iGaming offer. The alliance involving the active participation of football player Ronaldinho Gaucho demonstrates the common will of the three organizations to provide remarkable gaming experiences in the online casino universe and includes a sequence of major releases to be disclosed soon. Ronaldinho’s involvement with new games is anticipated to be a game-changer, bringing innovations tailored specifically for Brazilian iGaming enthusiasts.
By Brazilians for Brazilians with a strong innovation push
With a solid emphasis on meeting the specific needs of Brazilian players, FBMDS brings a deep understanding of the local market. According to Renato Almeida, Director for FBM: “Our Brazilian DNA guides the creation of online casino games ready to surprise the local players. This partnership demonstrates our dedication to delivering games that directly touch the hearts of Brazilians.”
“Ronaldinho Gaucho’s involvement reinforces our commitment to innovation, localized and high-quality entertainment. We are concentrating efforts to exceed operators’ and players’ expectations and create a set of games that can impact the Brazilian and Latin American markets in force,” said Almeida.
In this synergy between FBMDS, Planet Invest and EverPlay, the three companies intend to add value to the online casino games offering and strengthen the connection with Latin American and Brazilian players through immersive and personalized gaming experiences covering different game types.
A shared vision to raise the iGaming excellence standards
According to Ricardo Namen, Director for EverPlay: “This partnership between FBMDS, Planet Invest and EverPlay goes beyond a simple strategic alliance. It reflects a shared vision of innovation and a commitment to the future of digital entertainment. Together, we are shaping the next generation of online casino games.”
Nilton Leao, Director for Planet Invest, highlights the group’s ambition: “Our goal is to amplify the engagement that Ronaldinho Gaucho brings to his fans. He is a sensation that embodies joy and entertainment. Through this partnership, we are leveraging his unique appeal to deliver unparalleled fun and excitement, enhancing the way fans experience the thrill of iGaming.”
By leveraging the strengths of each partner, this collaboration aims to generate a global impact by maximizing the impact of the launch of several online casino products across international markets. It also aims to transform the iGaming industry with cutting-edge proposals and to strengthen ties with a set of demanding and passionate player communities, ensuring that each release is eagerly anticipated and celebrated.
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