Brazil is the next great market for iGaming. Since November 2018 it leaves the industry with its breath on hold. Hence, a lot has happened. A new president has been elected in the country of Order and Progress. Many are trying to enter in the gaming market from the front door by signing up partnership with football teams for a bigger brand awareness.
Others are trying to collaborate with the government for the establishment of new markets within Land-Based Casino. In its very essence, the world is looking at Brazil as “the Big Next Thing” and it is going to blow up - sooner or later - with the publication of the first public tender for licensing.
The feeling of optimism that the industry of gaming has towards Brazil, has been disputed by a political landscape which lacked of stability in the past years. It will be fundamental to keep having an administrative continuity in order to process and to make the next step.
The big question is, how to do that? Answering to this in the most correct way is far from simple, especially when one wants to examine Brazil and its development.
On one hand, the Brazilian Gaming market has an estimated potential of 3 billion of US dollar per year, only considering Casino and Betting activities. On the other, when iGaming will be active in the country, what can happen can be misconcieving.
This is because the development of the Brazilian Gaming industry has two different faces and a subsequential - although as important - challenge.
Brazil is divided in two different market landscapes: one which is the reality in the metropolitan areas and megacities. The other is the reality of rural, undeveloped areas. With an average of 71.5% in the continent of South America, Brazil lags behind with an estimated 66% Internet penetration. Despite this, the huge population still allows Brazil to have an estimated astonishing 120 million people connected on the internet.
This means that the infrastructure level is built upon the first reality and that development in Gaming has to follow general growth.
The government has to see the legalization process as an opportunity to develop Internet Penetration, to favor the industry, but to favor a growth in the always so important pillar of growth of Infrastructure.
With a 66% Social Media rate and a 17% growth rate for both Internet access and advertising marketing, the country is capable to keep growing.
Industry-wise, being able to connect players all over the country may be a crucial factor of success of a given firm over the other: Brazil is the second country in the world - excluding populations with over a billion people - for Internet users. Brazilians wants to chat. They want to share, exchange and be entertained for good.
Those are not simple keywords. They will be the engine to better develop an attractive offer in the countries. Operators will be called to develop not only management and maintenance tools, but most importantly communication instruments to generate an important market share quota.
Betting on Football and Sports Betting in general will be the leading force for iGaming. It will be the main driver to an underdeveloped market which deserve to be a giant among men. Not only Sports Betting and iGaming Products, but eSports will be another leading factor for the country: let’s not forget Brazil has more active videogamers than most European countries and it might be a fact that can impact betting activities.
* Anna Verdoliva is Sirplays Chief Sales Officer, South America
Source: GMB
