Andrei Beu shared his thoughts with GamblingNews on the fast-evolving market in Brazil. Find his outlook on how technology can unlock the true potential of the Brazilian sports betting market below.
Brazil stands on the cusp of regulating and licensing sports betting. The “sleeping giant” has awoken. With a population of 214 million and a national obsession with football, Brazil’s lawmakers are focused on launching the newly regulated market in time for the 2022 World Cup in November.
If everything runs on schedule, the first full legal year of sports betting in Brazil, 2023, could reach US$720,000 in gross gaming revenue, rising to US$1 billion by 2026, according to data provider H2 Gambling Capital.
Industry researcher Vixo says the country has the potential to quickly become a top-five regulated market globally, along with the likes of the UK, Australia, Italy, France, and New York.
With a tax rate that’s expected to be relatively friendly to the industry and no limit on the number of licenses available, international operators will be clambering over one another to be licensed in time for the World Cup.
The market will be highly competitive and is likely to grow quickly. Branding and marketing will be crucial, of course. And regulation will allow operators to buy space on major advertising channels.
But for operators who cannot afford multi-million-dollar advertising campaigns, or to splash their brands across the shirts of the country’s football giants, like Corinthians or Santos, it’s crucial you get the basics right.
In a competitive new market, you should aim to partner with a provider that can offer top pricing and a top bonus engine. Combine this with localized, market-specific content, ensure that leading payment methods are available and that possible future additions like bingo can be added without disrupting the technical infrastructure.
The 2022 World Cup presents a massive opportunity to drive acquisition in Brazil. But operators will have little time to establish themselves in the market before bracing for what they hope will be a huge wave of betting activity.
According to FIFA and its services partner Sportradar, an estimated $155 billion was bet on the 2018 World Cup globally, a figure that could well be eclipsed come November.
Brands entering the new market will need to ensure their operations are underpinned by the best technology that can offer real platform stability. It needs to be able to withstand a surge in wagering from a lot of new customers.
The bottom line is, if these new customers can’t get their bet on Brazil for the team’s opening game against Serbia, they will go somewhere else. And they won’t come back.
That means, if you’re running a proprietary platform, you need a small army of developers and engineers working around the clock. And if you’re a white label, again, you need to be working with the right partner.
Your partner must have the platform stability to ensure that your sportsbook has all functionality and features working properly at all times. And that means not just when you’re plugged in, but when all your partners’ third-party clients are plugged in too.
With the current technology available, you should look for a software provider that can deliver 99.5% uptime. This should ensure that players can access the sportsbook and use it as they would expect to.
There are many providers out there, all claiming to offer unbeatable solutions. But not all are cut from the same cloth. Pick the wrong one and succeed in this exciting new market will be like San Marino trying to win the World Cup.