Brazil has emerged as one of the most significant markets for the gambling industry. As the country’s government considers implementing restrictions on payments, other teething troubles over new regulations also exist.
Tatiana García Barrenechea, Commercial Director for LatAm at Light & Wonder, Thomas Smallwood, Chief Commercial Officer at ESA Gaming, Izabela Słodkowska-Popiel, Head of Account Management for North America and Latin America at Wazdan, Helena do Couto, Regional Legal Officer LatAm at Eeze, Alvaro Camargo, Country Manager Brazil at Xtremepush, and Thiago Calmon, Online Sales Manager at R. Franco Digital, conclude the latest CasinoBeats roundtable by addressing critical factors to consider to achieve success and issuing a vision as to what the market could ultimately look like.
CasinoBeats: What are the key factors operators need to consider when putting together a profitable offering that appeals to players and bettors and how important is localisation?
Tatiana García: Without a casino-floor heritage, Brazil requires a bespoke approach to content, and it will be intriguing to discover early trends that emerge once the regulated market goes live.
We believe certain game types will appeal to a large segment of players in the country, with crash games being one in particular. They offer quick-fire, unpredictable entertainment that is engaging while also simple to understand for those players who are not acquainted with feature-rich slot experiences.
Our analysis also suggests that video bingo games will be a big hit for operators, along with three-reel slots that are accessible and engaging.
Thomas Smallwood: Selecting the right local partners is crucial. We pride ourselves on offering our game aggregator system as a localised product, not only in terms the game suppliers we offer but also the experience we can add.
Having relevant themes and popular game types, such as our mine games, which have proved very popular in the past in Brazil can make a significant difference.
Player loyalty will also be essential in a market where tax impacts operators, suppliers, and players alike. Those operators who adopt innovative cross-selling techniques, like our EasySwipe games accessible through our sportsbook widget, can gain an edge by driving conversion from sports to casino without cannibalising existing revenue streams.
Izabela Słodkowska: To develop a profitable offering in Latin American markets, operators must prioritise player demographics and preferences, tailoring content and promotions for each specific region.
Localisation is essential: adapting to diverse regulations, preferred payment methods, and responsible gaming standards helps foster trust among players. A strong, region-specific approach not only enhances credibility but also boosts long-term growth potential across Latin America.
Helena do Couto: Beyond gathering data from current player behaviour, it’s essential for operators to present themselves to potential players in ways that captivate, connect and build trust.
When comparing Brazil to Europe, its territory covers an area roughly 80% the size of the entire continent. So, although Brazil is just one country, it is crucial for operators to explore the cultural diversity of each region. This approach helps players feel recognised and connected to the operator.
The Brazilian tendency to bargain for discounts and love of giveaways translates into a market preference for bonus offers. Connection can also be enhanced by integrating the operator’s brand into elements already familiar to players.
Trust will be built on a license to operate in Brazil, clear games rule, and efficient customer service, given the country’s strong consumer protection system. And of course, a portfolio featuring the most popular games among Brazilians, with a dash of new releases.
Alvaro Camargo: This is a good question. While entering the market with a set of services and products that have been successful in other markets is a reasonable strategy, it is also vital to remember that you are dealing with a very specific audience.
You need to understand your customer and the ways that things are run in Brazil. There are local habits and cultural differences that have a big impact on the way customers relate to brands and operators.
It is also important to understand that Brazilians are impulsive, emotional customers. Well-structured support teams and service levels are required to allow players to make quick deposits, interact and offer real time incentives in a dynamic way, constantly keeping them engaged.
Brazil is also a very visual culture, too. By packaging services attractively, this will help to keep players within an ecosystem.
Thiago Calmon: To succeed in the competitive gaming and betting industry, operators must prioritise a seamless user experience. This involves optimising both website and app interfaces to ensure intuitive navigation and accessibility for all players.
Coupled with this is the importance of offering flexible payment options tailored to local preferences. By accommodating various payment methods that resonate with regional habits, operators can enhance user convenience and build greater trust among their clients.
Localisation within content is also essential; understanding local interests, such as favoured sports and cultural nuances, enables operators to engage effectively with their target audience. Additionally, emphasising responsible gaming practices is crucial in establishing a trustworthy brand.
By promoting a safe and responsible gambling environment, operators not only foster player loyalty but also contribute to the integrity and sustainability of the industry as a whole.
CB: Finally, amid reports that Brazil won’t be quite as lucrative for operators as was first predicted, what is your ideal vision for the future of the regulated market in the country?
TS: My ideal vision for Brazil’s regulated igaming market is one that strikes a sustainable balance for all stakeholders—operators, suppliers, players, and the regulator. For regulators, this shouldn’t just be about blocking unauthorised sites; they also need to create an environment where regulated operators can flourish.
Such an approach would benefit players, maintain industry integrity, and ensure long-term growth. A balanced ecosystem, where regulation doesn’t stifle opportunity, would make Brazil a leading example in LatAm and beyond.
It can also lead to Brazil becoming a hub for companies looking to establish a corporate presence to target the wider LatAm region and to lessen the impact of withholding tax.
IS: The ideal future for Brazil’s regulated market would strive for a balance between fair profitability and sustainable growth.
This includes streamlined licensing processes, moderate tax rates, and flexible payment solutions. Such an environment would encourage investment, enhance market competitiveness, and serve as a benchmark for regulatory practices in Latin America, fostering trust and promoting growth across the region.
HdC: It depends on what was previously forecast as profitable. There is, of course, a difference between the period prior to the regulation and the one that will begin on January 1, 2025, but Brazil will continue to be a major force in the betting sector.
As for my ideal vision, I imagine an industry recognised by everyone for what it is: a form of entertainment. People will understand that regulation – not prohibition – is the best path.
Regulations will be consolidated, discussions about interpreting the rules will be minimised to almost zero, data published by institutions and the media will be accurate, and we’ll be able to focus all our energy on improving the product and player experience.
AC: We have a unique tax structure, so that presents a challenge to companies entering the market. The government has proposed a lot of questions that will affect profitability, but there has to be an understanding that it’s all about scalability.
In the pre-regulated market you had small, profitable operations that did not spend much on marketing and instead went down the route of affiliation. With the new structure in place, the margins that were in play no longer are and that means businesses will need to go big. Otherwise, it will be very difficult to become profitable.
This is where customer engagement also becomes invaluable, interacting with existing players in the right way. If operators gain highly relevant data about their customers and leverage that effectively, connecting with them effectively at the right times, this can help to extract so much value compared to chasing new players.
TC: In the gambling industry, it’s crucial to understand that although initial profits may not meet expectations, a well-regulated market can bring significant long-term benefits. Establishing a transparent environment protects players and encourages fair competition among operators.
Clear regulations enhance trust, promoting responsible gambling practices and instilling confidence in stakeholders. This transparency attracts investment, as stability and integrity are appealing to investors.
For Brazil, creating a reliable market not only benefits local operators but also enhances its global competitiveness. Supporting innovation through strong regulations will ensure the industry meets consumer expectations while respecting ethical standards, contributing to long-term sustainability and growth in Brazil’s gambling landscape.
TG: Brazil is the biggest country in Latin America and with a population of 250 million people, the potential for our industry to flourish is substantial. It is really important that within the regulated market, players are presented with the widest possible range of content that appeals to every segment.
This will help channelisation efforts, enabling Brazilian operators to deliver entertainment that is fun, wide-ranging and above all, safe and secure. I am optimistic this will be the case once regulations kick into effect early next year.
It’s a very exciting time and we look forward to continuing to work with operators, alongside our commercial and games teams, to ensure that this is a very successful market for Light & Wonder.
