Games Magazine Brasil - What’s your assessment of Brazil’s sports betting market after its first months of regulation?
Chris Nikolopoulos - It’s still early days for Brazil’s regulated sports betting market, but initial assessments are promising. The legal framework has successfully balanced operator appeal with player protection, laying the foundation for a thriving and sustainable market. Our initial evaluation confirms that the country's growth trajectory aligns with projections from leading Regulatory Intelligence provider Vixio.
Early indicators validate the forecasted revenue surge from $2.5 billion in 2024 to $6.2 billion in 2028, accounting for more than half of LatAm’s projected GGR of $12.3 billion. This underscores Brazil's potential as a powerhouse in the global sports betting landscape.
However, this short period has also highlighted the importance of closely monitoring the market. As regulation continues to evolve, there’s a risk that excessive or unclear regulation could create setbacks. While Brazil has implemented innovative tools to enhance integrity and deter illicit practices, we must observe how this evolves.
Overregulation can have unintended consequences — excessive controls and complex compliance requirements might drive users towards unregulated or offshore markets, where protections are minimal or nonexistent — and ultimately undermine the good work intended by the newly enacted regulations. The same thing applies to a lack of clarity in relation to some verticals, for instance esports.
Adding to this complexity, Brazil’s regulator plans to revisit rules on responsible gambling and introduce specific requirements for suppliers as part of a series of reforms being considered over the next two years. While these reforms aim to strengthen industry standards and player protection, they also introduce additional layers of compliance that providers must navigate carefully. Therefore, maintaining a delicate balance is crucial.
What are the biggest challenges for operators and providers in Brazil right now?
For operators, the main challenges lie in differentiation, scalability and fierce competition. The high influx of local and international operators means that the battle for market share is intense, as we can see also by the fact that 18 out of 20 first-division football clubs in Brazil are sponsored by betting brands.
For instance, established global brands such as BetMGM and Caesars are entering the market with substantial marketing budgets, allowing them to capture user attention quickly. So the coming months would be interesting to see how the local bookmakers will leverage their presence and experience to maintain a dominant market share against new brands who have made a big name in other mature markets.
When it comes to providers, the challenges are slightly different but no less demanding. And it’s not solely down to how technologically advanced your sportsbook platform is. Firstly, content localization is crucial since Brazilian bettors have unique preferences, and generic, one-size-fits-all solutions won’t cut it.
Secondly, having a strong trading team that can cater offerings on demand to the local market is also key. Additionally, partnering with local operators demands high flexibility, since offering customizable solutions that resonate deeply with different market segments will be vital in securing long-term success.
How crucial is innovation for standing out in Brazil’s competitive market?
Needless to say that innovation is of the utmost importance. It takes more than just offering a flashy UI to maintain a competitive edge long-term.
At BETBY, we actively respond to these demands by continuously evolving our product portfolio. For instance, our recently upgraded Betting Tipster, which is a part of our award-winning AI Labs feature, provides personalized betting advice, helping users make more confident and informed decisions. Unlike many suppliers that limit their Betting Tips to major leagues, we can provide insights for all lower-tier leagues across the covered sports, enabling operators to activate specific, niche leagues according to their preferences while allowing users to diversify their betting opportunities and engage in an immersive experience.
Meanwhile, knowing that the esports scene in Brazil is one of the fastest growing worldwide, our BETBY Games portfolio offers an extensive selection of esports markets, including unique player-specific odds for CS2 and Dota 2, two of Brazil’s favorite titles. Additionally, we differentiate ourselves by providing odds for underexplored games such as Escape from Tarkov: Arena and Stormgate, ensuring a diverse and complete experience for bettors. By doing so, we help operators stand out in Brazil while appealing to bettors' preferences.
How does BETBY’s approach align with the evolution of the Brazilian market?
Our strategy at BETBY isn’t just about keeping up with Brazil’s growth, it's about leading and shaping it. To succeed in this market, we had to prepare ourselves and address several key questions, including for instance its specific regulatory framework. Brazil’s dual licensing system — federal and regional — introduces unique complexities, underscoring the importance of flexibility and preparedness.
While federal certification ensures nationwide operations, regional operators have a transition period of up to 180 days since launch to comply fully. For those who do not secure the necessary license, it’s game over in Brazil. Fortunately, BETBY’s proactive approach ensured we achieved both regional and federal certifications, allowing us to operate and provide our innovative solution in both licensing frameworks.
Beyond regulatory adaptation, we have a dedicated Brazilian team on the ground, which is a clear statement of intent regarding how much BETBY prioritizes the Brazilian market and LatAm as a whole. Our LatAm Regional Director, Juan Pablo Barahona, leads a local team that operates directly from Brazil, ensuring we remain closely aligned with local trends, regulatory developments and customer demands.
For BETBY, Brazil is more than just a market expansion, it’s about building local relationships and understanding the cultural and operational intricacies of the region. By combining regulatory adaptability, local expertise and technological innovation, BETBY is actively reshaping the future of the Brazilian landscape while helping its partners to thrive in the market.
Source: Exclusive GMB
