Brazil is the market that everyone across the igaming industry is talking about. But with the government making last-minute changes to its regulatory framework, Affiliate Leaders examines just how big the challenge will be for affiliates eyeing up Brazilian expansion.
————————————————————————————————————
Anticipation for the Brazilian igaming market is continuing to grow as we approach the scheduled 1 January 2025 launch date. Brands from across the world are eyeing up new opportunities within Brazil; but with more than 180 brands having already applied for a licence, competition is likely to be fierce.
Traditionally, operators might turn their attention towards branding, marketing or promotions as a means of building visibility and acquiring customers in a new market. But with the Brazilian government announcing that it was making moves to ban bonuses and sign-up offers, operators may be forced to reconsider their strategies.
This new announcement marks a decisive shift in regulatory oversight in Brazil, introducing a new layer of complexity for those looking to break into this South American jurisdiction. But it’s not a deal-breaker for expansion.
A changing landscape
Betting bonuses have long been a cornerstone of affiliate campaigns, driving traffic and conversions. For many, bonuses can be an effective tool to drive engagement with new audiences, reactivate dormant players and incentivise players to return to your brand.
But with bonuses now off the table, affiliates must rethink how they attract players and create value for operators in Brazil.
This isn’t the first review that the Brazilian government has carried out on the inbound gambling framework. In fact, over the last few months, the government and affiliated agencies have been actively taking steps to fine tune proposed regulations – and player protection has been cited as a defining factor in any changes.
Most recently, the Federal Supreme Court unanimously upheld Minister Luis Fux’s emergency measure which would issue an outright ban on advertisements that target minors, as well as gambling using social welfare payments.
In a similar vein, the latest announcement of the National Consumer Secretariat’s (Senacon) directive to ban betting bonuses aims to protect vulnerable groups – particularly minors and those deemed to be at risk of problem gambling.
Senacon revealed that those brands which do not comply with the new ban on marketing bonus offers will face a daily fine of BRL 50,000 (approximately £6,800) – a fee that will certainly make a dent in any marketing budget after a few days.
Navigating the challenges
For affiliates, the immediate question that is likely to arise is how they can best adapt marketing strategies to remain on the right side of compliance. After all, affiliates will be looking to strike a balance between responsibility and sustainable growth.
One of the key priorities for many operators, and affiliates, will be closely monitoring regulatory updates. If the last few months are anything to go by, regulations may be subject to change – and quickly.
With the Brazilian market expected to become one of the most competitive gaming jurisdictions in the world, it’s now more important than ever that all gambling brands prioritise compliance.
Affiliates may also be well placed to consider focusing their marketing efforts on promoting responsible gambling, ultimately demonstrating value to players and also helping spotlight a safer wagering environment. This could involve featuring tools that limit spending or highlighting operators that offer an array of responsible gambling tools.
Brazil – still a land of opportunity?
The ban on marketing bonuses might sound like an additional nail in the coffin for affiliates. But as previously mentioned, this doesn’t mean that affiliates should overlook the opportunities for expansion here.
Despite the new restrictions, the Brazilian market remains potentially fertile ground for affiliates. Its population of more than 200 million people, combined with the country’s inherent love of sports and casino, still provides ample opportunity for engaging with bettors.
From SEO, educational content and reviews, to guides, influencer partnerships and engaging post-match analysis, affiliates still have a chance to make their mark in Brazil. If anything, this might pave the way for greater creativity.
What next?
The regulatory environment in Brazil may be tightening, but it’s still brimming with opportunities for growth. Instead, the focus has now shifted towards avoiding the mistakes made by more mature markets and instead creating a sustainable, player-centric ecosystem that will stand the test of time.
In essence, it will be innovation that forges a new battleground for affiliates. Those that can quickly pivot to new regulatory changes and are willing to evolve alongside market demands will stand to gain an edge.
By focusing on compliance, personalisation and responsible gambling, affiliates can not only navigate these challenges but thrive in one of the most exciting igaming markets on the horizon.
