Gabriel Szlaifsztein, Regional Sales Director for LatAm at Continent 8 Technologies, talks about the Brazilian market and why operators and suppliers must prioritise robust infrastructure if they are to succeed.
The opening up of Brazil has added yet more impetus to the already thriving LatAm market. This is a significant jurisdiction that looks set to open its doors to legal and regulated online sports betting and casino for the first time.
Given the sheer size of the market – it has a population of more than 214 million as of 2021 – and the appetite that we have seen for sports betting and casino while it has been in a ‘grey’ state – it’s no wonder that both operators and suppliers are looking to get in on the action.
As is often the case when a new market opens, a lot of focus is given to product and marketing to ensure the user has the best possible experience with a brand, and that they know the brand is actually live in the market in the first instance.
This is of course important, but first operators and indeed suppliers need to consider their infrastructure and its role as the foundation of their sportsbook, casino or product/service offering.
Infrastructure ultimately ensures the sportsbook or casino is safe and secure, and that there is no downtime, which in turn negatively impacts the player experience. Not only that, infrastructure must be deployed in a way that is compliant with the rules of the market.
So, what are those rules in Brazil?
At the moment, regulations and requirements are still being finalised and are subject to change. But our team on the ground is reporting that Brazil will look to other regulated LatAm markets such as Colombia, Peru and Buenos Aires and use their regulations to guide its framework.
“If operators and suppliers do not have the necessary protections in place, the impact of a successful attack on their business can be near fatal”
If this does happen, then operators and suppliers will not be required to have specific infrastructure in each country (or specifically in Brazil), but they would likely need to have a local backup of all customer data – the regulator usually requires access to this for its verification and auditing activity.
This would mean that operators and suppliers targeting Brazil can house their infrastructure elsewhere. Of course, operators would need to be mindful of the requirement to have local data backups and they will also need to take latency into account.
Latency is a key consideration when it comes to the player experience. Bettors and casino players expect a lightning-fast experience – they want to be able to bet without delay and fire up the reels and watch them spin without any lag or interruptions.
Infrastructure is key to reducing latency so operators will need to think very carefully about where they host their infrastructure.
At Continent 8, we serve the entire LatAm region from our Colombia data centre. When used in conjunction with our global connected network spanning over 100 locations and our suite of managed hosting, connectivity and cloud solutions, it ensures customers are faster than their rivals.
Just as important is infrastructure security and Continent 8’s Secure division is the market leader in this area.
Our multi-layer offering takes in DDoS and WAAP protection as well as MDR/EDR and SIEM/SOC. The industry is one of the most attacked, and the opening up of a new market, such as Brazil, certainly catches the eye of cyber attackers and criminals.
If operators and suppliers do not have the necessary protections in place, the impact of a successful attack on their business can be near fatal. By taking a multi-layered approach to security, businesses can put a ring of steel around their systems and networks, ensuring they are fully prepared.
“…for operators and suppliers looking to make their move in what will be a fiercely competitive jurisdiction, they must first establish a strong foundation”
Continent 8 has been providing innovative yet reliable infrastructure to the global online gambling industry for more than 25 years now. Over that time, we have come to understand the unique needs of this industry, and what it takes to deploy infrastructure in regulated markets.
In every jurisdiction, we take a first-to-market approach so that our customers can be among the first to go live and leverage the tremendous advantage this provides. To do this, we work closely with regulators in each market, sharing our experience and expertise.
This is no different in Brazil where we have boots on the ground. This in itself makes Continent 8 unique – we have a dedicated LatAm team that truly understands the market, the culture, the infrastructure and the requirements of businesses and consumers.
Specifically in Brazil, we have been working with the regulator to overcome a key issue when it comes to connectivity which differs from state to state – in some, carrier quality is high but in others, it is not, and this makes for a fragmented market.
Our solution is to have one international provider that consolidates all carriers across Brazil, and this is a role that Continent 8 is willing and able to take on. Ultimately, this would ensure all operators and suppliers were able to access stable, reliable connectivity across the market.
Many consider Brazil to be the sleeping giant of Latin America, and this might well be the case. But for operators and suppliers looking to make their move in what will be a fiercely competitive jurisdiction, they must first establish a strong foundation, and this comes down to infrastructure.
This is exactly what Continent 8 provides and our award-winning suite of managed hosting, connectivity, cloud and security solutions have powered many businesses across LatAm and beyond to long-term success.