With a population of more than 215 million people, the Brazil market has “everything it takes to be one of the powerhouses” of the igaming industry.
That was a key message in a new market report published by SOFTSWISS, titled ‘igaming in Brazil: pre-regulated market overview’.
As it stands, the Brazil market is currently awaiting the launch of its regulated market following President Lula’s decision to sign off on provisional measure No-1182.
If, or when, that legislation comes into force, igaming companies which have not received a licence will be unable to advertise their products to bettors across Brazil.
A rich sporting history
Brazil has become somewhat synonymous with sports, and more specifically, football. This affinity for the game is reflected in the size of the country’s sports betting market, with bettors opting to bet on sports much more than online casinos.
Data shared in the SOFTSWISS report shows that 81 per cent of bettors bet on football, compared to 33% for basketball, 29% esports and 26% poker.
The report reads: “The sports betting market in Brazil is significantly larger than that of online casinos in terms of number of users. The first evidence showing the difference between the two markets is the revenue generated through online sports betting.
“In 2020, the operations recorded €1.2bn. In 2023, the expectations are an increment that reaches €2bn, almost doubling in three years. This sum is directly related to the number of online gambling users in Brazil; by 2027, it is believed that there will be 2.25 million active users.”
Highlighting the key differences between online casino and sports betting, early insights from the Brazil market have shown that 69% of bettors choose to bet on online sports betting, 38% fantasy games, online casino appeals to 36 per cent and 32 per cent online bingo.
An opportunity for online casino in Brazil
Despite the popularity of sports betting, this isn’t to say that there isn’t a growing opportunity for online casino companies looking to enter the Brazilian market.
SOFTSWISS has predicted that by the end of this year, the online casino sector in Brazil will reach €0.91bn in revenue. And by 2027, around 2.25 million people will “participate in online casino games” – with 48 per cent of bettors expected to play casino games “one to three times per week”.
Something that SOFTSWISS noted in its research, however, is that the majority of casino bettors are still likely to gamble via a sportsbook. With that in mind, any operators entering the Brazilian market should be considering new and innovative ways to cross-sell their sports products to casino bettors, and vice versa.
A sleeping giant
Bringing the report to a conclusion, SOFTSWISS highlighted that while the market is still not fully regulated, early figures have shown that there is a growing potential for “rapid expansion” once it opens up.
The report concluded: “Brazil has all the advantageous facets that make it an attractive market poised for success, including its growing young and middle-aged population, the penetration of technology, its gaming and football culture and its economic prosperity.
“The combination of these elements create a favourable space for companies interested in being part of Brazil’s igaming story. SOFTSWISS and the entire igaming industry are closely watching the development of Brazil’s igaming market and are here to make sure current and future operators have the winning technology partner to succeed.”
You can download the full report HERE