Operating and expanding in Brazil can be a complex endeavor for sportsbooks. It demands thorough planning, research, and implementation to navigate the country's different opportunities and obstacles, with many crucial factors to keep in mind. Regulation remains the most significant factor to consider, but even when the regulatory limbo in which sportsbooks and other industry players currently operate dissipates, understanding the new legal landscape in Brazil would only be the first step. Playing by it is another thing.
Sportsbooks must learn how to comply with the requirements the government had set for obtaining licenses and the new tax regulations while also fully grasping the financial outcomes they impose on them. Most operators voiced concerns over the latest decision, claiming that the total tax burden for companies in the provisional measure (PM) signed by President Lula should reach approximately 30%, after taxes such as PIS, COFINS and ISS. Also considering the taxation on player prizes, this would place Brazil among the highest tax burdens on the planet for the sector, clearly something to be aware of.
Creating tools for preventing fraud and match-fixing is another essential sportsbooks would need to adapt, in addition to implementing risk management and responsible gambling practices. Both would be vital for protecting customers and maintaining business integrity in a country that still has mixed opinions on sports betting's social impacts before jumping into the ring.
Localization is crucial, and it has many faces
Localization is a key factor. Latin America is a promising sports betting market as a whole, but only operators that will pay special attention to comprehending the cultural and social differences between the countries and within them will gain an edge over their competition. This is why effective marketing and promotion strategies that resonate well with local customers and account for sensitivities and habits are crucial for expanding in Brazil.
Localization also means customizing offerings to local crowds. Sportsbooks with a wide range of products and services must adapt them to Brazilian users, overcoming language barriers and terminology challenges. Establishing a culturally sensitive customer support infrastructure, operating with high availability, and being thoughtful of cultural differences in communication styles would resound well with customers and potential users who still make their first steps in the evolving sports betting scene.
Finding the right match - data provider
Data is the most critical building block upon which successful sportsbooks are built and the game-changer that separates leading bookies from the rest of the pack. A comprehensive data set, provided in real-time, with low latency and high accuracy, allows operators to offer customers a wide coverage of betting markets on various sports and leagues while managing risk exposure, increasing user engagement, and maximizing their profitability.
This is why when sportsbooks are building business partnerships and local collaborations in Brazil, choosing a data provider that understands the unique challenges that await them and has experience with tackling them can be a significant difference-maker.
For us at LSports, Brazil has long been a major target. We recently established an official presence in the country with dedicated LSports representatives, providing sportsbooks 360° backing of sales, customer support, and customer success. Our future intentions in Brazil are well manifested by the 10-year data rights deal we signed in late 2022 with the Brazilian Basketball Confederation (CBB), allowing sports fans to enjoy a gaming experience they never experienced before. Starting next year, we will also hold the data rights for the NBB (Novo Basquete Brasil), the country’s premier men's basketball league.
All of our products are fully localized for every country in LatAm. This includes BetBooster, LSports' AI-based betting tips tool, which is already being used by top sportsbooks such as Estrela Bet and Rivalo, and our soon-to-be-launched Sports expert chat (SEC), a large language model utilizing similar technology to ChatGPT, which we believe will revolutionize the way sports data is accessed and used in the industry.
LSports Co- Founder and CEO
Source: Exclusive GMB