The Brazilian market continues to be one of much intrigue for gambling operators, as they seek to ensure the maximum engagement for igaming in the region.
In a piece for SBCNews, specialist gambling investor and industry M&A strategist, Tom Waterhouse, believes that investor appetite will be replenished by the launch of Brazil’s forthcoming federal gambling marketplace.
Analysing whether international operators or domestic operators will take the lead in the Brazilian market as it opens up, Waterhouse backed the potential of local operators, although he did admit that it was too early to call.
He stated: “The possibility for a local domestic champion to emerge is high considering the complexity and regional differences across different states in Brazil. If a local champion emerges, it is likely to attract the attention of operators like Flutter and Entain, who have a history of buying ‘local heroes’.
“Most recently, in September, Flutter acquired an initial 51 per cent stake in MaxBet, the second largest sports wagering and gaming operator in Serbia, for €141m. Flutter has an option to acquire the remaining 49 per cent of MaxBet in 2029.”
The desire for localised knowledge and strategies could grow the potential for mergers and acquisitions as international players look to tap into the knowledge of those already on the ground in the region, according to Waterhouse.
Waterhouse continued: “The launch of Brazil’s regulated betting market is an exciting growth area for international operators and suppliers. Companies that can demonstrate a Brazilian growth strategy may benefit from increased interest from investors and there is likely to be M&A activity focused on the Brazilian market over the next few years.
“For example, international operators like Flutter may acquire leading local Brazilian operators. On the supplier side, affiliates will be able to earn high revenues per depositing customer for the next few years, ultimately increasing their valuations.”
In a recent comment to CasinoBeats, Martyn Hannah, Managing Director of Comparasino, also highlighted that localisation could be key for operators.
He stated: “Those looking to make a move in Brazil and launch an online casino have a big opportunity to take advantage of, but they will have to ensure their offering is fully localised for the market.
“This means having a cashier that offers the payment options players use plus a lobby stocked with games from LatAm providers as well as renowned international studios.”
