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.
Alexandre Tauszig Sales Director at NGX
Xtremepush set to boost engagement and retention for Brazilian iGaming platform NGX
Xtremepush, the leading provider of CRM and loyalty marketing powered by AI, has gained further momentum in LatAm following an agreement with integrated iGaming and sports betting platform NGX.
NGX is an all-in-one platform that delivers secure casino and sports betting management, with full quality control to ensure excellence. It offers complete autonomy and drives innovation for operators, supporting their growth in Brazil.
As a result of the partnership, users of NGX’s platform will benefit from Xtremepush’s engagement, AI and gamification tools, delivered through its real-time Customer Data Platform (CDP). NGX’s operator partners will be able to deliver personalized messaging, promotional campaigns and targeted promotions to their players, boosting engagement and retention.
The strategic partnership represents a strong period of growth in LatAm for Xtremepush, following recent agreements with leading operators Senna Sport and Betsul, along with platform providers including Vibra Gaming and WeeBet.
Robbie Sexton, Director of Partnerships & Sports Betting & Gaming at Xtremepush, said: “We are delighted to partner with NGX following a successful growth period for Brazil in Q1 2024. Their vision for success, innovation and integrity is perfectly aligned with our aspirations in the thriving market.
“NGX’s platform is respected in the Brazilian iGaming scene and will help us deliver our solution to more operators in LatAm.”
Alexandre Tauszig, Sales Director at NGX, said: “We consistently strive to help operators meet the changing demands of the industry, which is why Xtremepush is our partner of choice.
“The provider’s leading engagement and retention tools, which are constantly upgraded, will help operators leveraging our platform to reach customers more easily and effectively, increasing their life span.”
Pragmatic Play, a leading content supplier to the iGaming industry, has signed its latest Latin American agreement, this time with leading operator bplay to solidify its position in the rapidly expanding Brazilian market.
The integration of Pragmatic Play’s award-winning products into the operator’s portfolio will allow bplay customers to enjoy a range of Slots, Live Casino and Virtual Sports content, including popular titles such as Gates of Olympus and Blackjack X.
In total, bplay will gain access to more than 300 Slot titles, market leading Virtual Sports titles, and award-winning Live Casino games as it looks to establish itself in the vibrant Brazilian market.
It is the latest deal signed by Pragmatic Play in Latin America, where it continues to grow its commercial presence, aligning with the company’s impressive growth strategy in the region.
Victor Arias, Vice President of Latin American Operations at ARRISE powering Pragmatic Play, said: “Partnering with bplay reinforces Pragmatic Play’s dedication to delivering unparalleled gaming experiences to players in key Latin American markets and highlights the success in growing its commercial footprint in Brazil.”
Leopoldo Saravi, Product Manager at bplay, added: “Partnering with Pragmatic Play marks an important step forward for us as we continue to provide leading entertainment to our players across the Brazilian iGaming landscape.
“Pragmatic Play’s ever-expanding portfolio already resonates highly amongst players on the continent, so adding its titles to our platform will increase our overall offering and helps us meet the evolving needs of our customer base.”
Salsa Technology has hailed a hugely successful BIS SiGMA Americas where it presented its Latin America-ready solutions. Sao Paulo’s Transamerica Expo provided the backdrop for the Brazilian iGaming community to come together to discuss all the major trends and developments in the region.
From Salsa Technology’s biggest stand yet at the event, the team was on hand for the duration to share info about the cutting-edge technology and highly-flexible solutions created specifically to meet the needs of local markets. The GLI-certified PAM, Salsa Omni, was a hot topic for those seriously exploring the regulated Brazilian market. It provides a comprehensive solution that includes secure migrations for peace of mind. Salsa Technology’s recent collaboration and seamless launch with NossaBet sparked many new conversations around partnerships.
“Seeing the sheer number of people visiting our stand and enquiring about our Latin America-ready solutions filled me with pride,” the founder of Salsa Technology, Peter Nolte, said. “There is huge momentum in the region following the regulatory advancements and we’re perfectly positioned to support those wanting to succeed here.”
Many productive exchanges were focused on Salsa Gator given its unrivalled ability to provide casino gaming in the regulated Brazilian market, complying with the specific requirements laid out by state regulators.
During the two days in Sao Paulo, Salsa Technology’s signature Senhor do Bomfim wish ribbons were in high demand, while the artisanal cachaca kept the conversations flowing.
“This year’s BIS SiGMA Americas event was the best yet for the business as the focus has never been sharper on what our solutions can deliver within the region,” the Chief Operating Officer for Salsa Technology, Andre Filipe Neves, said. “Attendees arrived with clear intentions and demands to discuss how best to expand into these regulated markets. Our preparation set the stage for significant success.”
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