According to BtoBet, the implementation of a regulated gaming market in Brazil has great profitability potential for foreign operators, as a combination of a sports-centered community and enhanced internet infrastructure pose new opportunities for remote gaming.
Publishing the study ‘Brazil Betting Focus: LatAm’s largest regulated market in the making?’ the company looked at how Brazil could become a global gaming powerhouse.
The igaming and sportsbook platform provider estimated that Brazil’s online gaming industry will rise to $101bn in gross income by 2024, with data from H2 Gambling Capital indicating sports betting will account for 67 percent of the overall market.
Although in 2017, as reported by the Brazilian Legal Gaming Institute (IJL), the illicit sector accrued $6.4bn in GGR, businesses claim that operations will be much more lucrative once the country’s legal structure is set.
The study added: Building on the step towards regulation: “Market experts are hopeful that an open licensing structure will be adopted. However whilst this seemed to be the case in the first public discussions led by the Brazilian government, this scenario has changed.
“In fact the third draft of the regulation has seen the Brazilian government shift its stance from an authorisation-based licensed system (open licensing structure where there are no fixed number of licences) to a concession based system, which might in itself include a bidding process.”
Luiz Felipe Maia, an attorney at Brazilian company FYMSA Advogados, underlined that a scheme dependent on compromises would not help anyone. He said: “By limiting the number of licences, we will only be creating excuses for unlicensed operators to continue operating offshore.
“Regulation must create the necessary conditions to attract all operators willing to invest in our country and to comply with our rules, which will set the highest standards based on international best practices.”
Despite a slight decline in overall mobile phone use, enhancements to the country’s internet infrastructure and increasing traffic via mobile devices present new growth opportunities.
The report noted that while the penetration of mobile connexions is 97 percent, which for the region is slightly lower than the median, internet connectivity is ‘in line with the region’s average penetration.’
The acceptance of digital payment methods could be a barrier to the growth of online sports betting in Brazil, the report found, however the adaptation and trust of these methods is accelerating.
Although credit card payments are Brazilians’ most commonly used mode of transaction (71 percent), cash (21 percent) occupies the next place, although bank transfers or e-wallets account for 4 percent of payments.