Brazil
Where does the Sport of Kings fit into the Brazilian market?
With a regulated Brazil now in sight, Richard Duncan, Head of Business Development at racing odds and data provider PA Betting Services, assesses the potential for the sport to become a key product in this emerging market
With the last few months having seen Brazil’s sports betting bill clear all the hurdles needed to finally be signed into law, many in the sports betting world have understandably taken a keen interest in the possibilities offered by South America’s largest country.
The home of footballing greats Pelé and Ronaldo and boasting more World Cup titles than any other country, Brazil’s passion for and the resulting potential of football betting is clear. There are a number of parallels to be drawn between a market such as the UK and Brazil when it comes to football. For one thing, the similar level of devotion among the fan base looks set to ensure that football will easily remain the biggest betting turnover generator in Brazil, as it is in the UK.
What’s less clear is how likely racing is to come anywhere near the second place it holds in the UK market, where it accounted for 36% of remote betting turnover in the last set of official Gambling Commission statistics. However, there are a number of comparisons that can be made between the UK and Brazil when it comes to racing. For example, there’s a hardcore fraternity of racing fans and many more casual racegoers, those who are likely to view a day at the races as much in terms of the experience as the opportunity to have a flutter. Not to mention that Brazil boasts the third-largest horse population globally. The thoroughbred industry has been growing steadily since the 1990s, with notable group one winners such as Siphon, Sandpit and, more recently, Bal a Bali elevating the breed’s prominence.
But there’s a huge difference in the local availability of racing. While Brazil’s enormous size makes it the fifth largest country in the world and its population of more than 215 million makes it the seventh most populated, it has just four racetracks, albeit these are well-attended on race days. The UK, ranked 80th by land area and 21st by population, meanwhile, is home to 59 racecourses.
This disparity goes some way to explaining why football is taking the lion’s share of sports betting turnover in Brazil despite currently being unregulated, while racing takes a fraction of this even though it’s been legal for many years.
Online operators could be doing more to cash in on local racing than they currently are. The key to making the most of the Brazilian opportunity is educating the local population on the benefits of betting opportunities that the sheer volume of international races affords and cross-selling this to keen sports bettors.
Filling the gaps
Because while football is unlikely to lose its crown as the most popular sport among Brazilian bettors, the problem with football, NFL, basketball, MMA, golf, tennis and everything else, is that there are so many gaps in the schedule. And once the significant licence fees outlined in the new law have been paid, both local and foreign operators are likely going to need to optimise their product with as little downtime as possible in order to justify their investment.
Racing has the edge over all other sports because on a global basis there exists a full calendar where there is always something to bet on.
In the UK and Ireland we’ve already seen this approach used to great effect with the relatively recent introductions of North American, French, South African, Australian and Asian racing for domestic audiences. This secondary content does well as it lands in either prime leisure hours or is filler at weekends or for poor weather conditions. The increasing globalisation of racing was, in fact, one of the key reasons for our acquisition of Asian racing data provider iRace Media in the second half of last year.
In this respect, foreign operators, some of which have established a foothold in Brazil prior to a regulatory regime and are savvy with this approach used in established markets, may have an edge over others, simply because they’re experienced with the product.
Brazil is likely to be the same as any other fledgling market in the sense that if a company has just started offering a legal gambling product, they are likely going to have greater comfort in offering products to bet on that they are familiar with.
Mitigating the risk
In conversations our team has had with operators in emerging markets such as Brazil, Latam and Africa, the racing knowledge gap is an issue that’s come up repeatedly. They could easily integrate with a data provider such as ourselves from a technical perspective, but they may not fully understand the data they are looking at and some worry this leaves them overexposed.
There are a number of things that make racing more challenging than other sports to trade. For a start, the vernacular used in racing is not something that everyone understands if they’ve not been exposed to it before. In addition, a lot of operators fear racing because while they believe it can make them good money, they know there are people out there, professional punters and big racing syndicates, that know more about racing than their own traders.
This view is not unique to Brazil or even new markets, it’s something we also hear in our core markets and it possibly goes some way to explaining why new operators sometimes take every sport on offer before they get to racing. But inevitably, most take racing at some point because the volume on offer is too great to ignore. However, one recent shift worth mentioning is that more operators new to racing are opting for a platform partner or pricing partner to avoid being exposed to risks they aren’t comfortable with.
This is something that may be even more attractive to operators in emerging markets like Brazil given their lack of experience with global fixed odds racing to date. One thing that may work in their favour is that the country’s bettors would also appear to lack the maturity shown in established markets when it comes to the type of bets they are placing.
For instance, virtually all of the bets taken on football in Brazil are multis, which are bad for punters but which operators love as they are high margin and low risk. A diverse racing portfolio similarly has the potential to deliver high margins for operators and keep players engaged year-round, meaning the product could be just as successful in Brazil as it is in many more established markets.
Richard Duncan is Head of Business Development at PA Betting Services. He has been with parent company PA Media Group since 2002, with the bulk of his career having been spent working in its racing team.
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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