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.
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.”
Award-winning provider highlights vast Latin American expertise at show
Full-service betting and gaming platform provider Sportingtech has introduced some of its newly-appointed Latin American team at this year’s BiS SiGMA Americas, showcasing how its local know-how and intuitive products can elevate any operator’s position in the region.
On-hand for the duration of the event in Sao Paulo was Marina Selmi, Latin America Regional Sales Manager, who outlined the full power of the supplier’s solution. Sportingtech’s expertise in the Latin American market was on display to more than 10,000 delegates, with the company boasting a comprehensive understanding of customer preferences across the region.
Laura Manzella, Senior Account Manager, was also present to provide insight on the current landscape. Manzella was able to inform partners of the latest regulatory updates and detailed the provider’s most recent technological developments to highlight its robust products.
Sportingtech has made great strides in developing its Latin America-facing team in recent months, with boots-on-the-ground personnel keeping abreast of the changing legislative scene to ensure compliance.
The supplier places a huge emphasis on its people and takes pride in fostering a collaborative and supportive culture. To coincide with this, there have been several key hires in senior positions across the company to help accelerate growth, following Chief Executive Officer Tom Ustunel’s appointment in December of 2023.
This year’s event saw Sportingtech pick up another high-profile industry accolade as Ustunel (pictured) won the coveted Chief Executive Officer of the Year award. The win recognized the leadership and commitment he has brought to Sportingtech as the brand is primed for more growth across the globe in 2024.
“BiS SiGMA Americas is certainly one of the most important events in the calendar and we had a tremendous experience at this year’s show,” Ustunel said. “It was important for us to showcase our local team members who have acquired a comprehensive understanding of the region and how we can positively impact the offerings of current and prospective partners. With regulations in Brazil almost finalized and other markets showing unique appeal and growth potential, we are well-placed to exceed operators’ expectations across Latin America.”
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/.
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