Brazil’s gaming market is showing significant growth with total revenues from casinos, lotteries, online gaming and sportsbetting exceeding US £4 billion. Most forms of gambling in Brazil were illegal but in December 2018, the Government passed legislation to regulate sports betting. This opened up opportunities for both local and international companies to enter the Brazilian market and offer online sports betting services.
Lotteries, such as the popular Mega-Sena, have a significant following in the country, with millions of people participating in regular draws. It has proved to be challenging however to provide the exact number of people who gamble across all forms in Brazil because gaming is such a diverse industry with a lack of comprehensive data and records for the region.
Sportsbetting in Brazil
Online fixed odds on sports events have been legal in Brazil since 2018.
In 2021 a tax was proposed to target revenues for the sector with a view to create a new revenue stream for the government estimated to be at least US $385 million. However it appears that this figure will be exceeded once the online gaming sector in Brazil is regulated. In reality, the proposed reforms may yield the government in excess of up to an additional US $1.2 billion in taxes.
Many sports betting companies have been scaling up activity in Brazil over the last few years. Amongst the leaders are bet365, Betano and Betfair.
Recently local football clubs have also increased brand exposure through sponsorships from a number of online sports betting companies.
Brazil has emerged as a powerhouse in South America due to its strong economy, regional influence, political stability, development of infrastructure and cultural impact. With a diverse and robust economy, Brazil has become a major player in emerging technologies and fintech.
The SiGMA Group’s Americas Summit this week has been a roaring success. When gaming will become regulated, the sector will flourish not only in Brazil but in all of the LatAm region.
SiGMA Americas is giving a headstart to operators, exhibitors and delegates who travelled from all sides of the globe to participate in this important event in the global iGaming calendar. For many it provided an opportunity to explore and expand into this new territory.
Founder and CEO of the SiGMA Group, Eman Pulis said this week that the success of SiGMA Americas in collaboration with BiS has been impressive.
Brazil spent years attempting to regulate sports betting but the tide is turning for the gaming sector and the potential in the region is tremendous. I am absolutely enchanted by Brazil and excited by the prospect of what is yet to come. Finding oneself so very much at home in a a country that is so far from my native Malta is a testament to the similarities of our heritage, culture and way of life. In Brazil I have discovered that rare feeling of belonging, a home away from home. I look forward to being instrumental in cementing the expansion of the gaming sector in the region with SiGMA’s influence and knowledge as the World’s gambling authority.” Eman Pulis, Founder and CEO – the SiGMA Group
The country’s large size and population give it significant influence in regional affairs, and it actively participates in initiatives promoting South American integration. Political stability, along with ongoing investments in infrastructure, supports economic growth and connectivity. Brazil’s rich cultural heritage and diversity contribute to its social and cultural influence. While facing challenges, Brazil’s progress positions the country as a prominent player in South America.
Pulis added that M&A activity in the gaming sector is expected to continue to grow and local businesses are bound to continue to partner with strong participants in the global arena to offer superior products to customers.
Locals are passionate about sports with favourites being football, American baseball and basketball, and on a more diverse level horseracing influenced by neighbouring Argentina. There is a marked customer appeal in mainsteam European football leagues generated by the growing use of the internet.
Tax revenues a game changer for Brazil
President Lula has brought new life into the economic model of Brazil.
Regulating the gaming industry for example should bring in substantial tax revenues. Lula’s intention is to introduce the new reforms to regulate the sector. He has flagged the new proposals as being a matter of urgency. Former President Jair Bolsonaro was somewhat reluctant to sign the law to legislate gaming – restrictions on gambling in the country date back to the 1940s.
Lula is also keen to unite South American countries and supports the issue of the ‘sur’, a new digital South American currency to be emitted by a South American Central Bank.
Proposed Common Currency for the LatAm Region (SiGMA)
The news that Brazil’s newly elected government has regulated sports betting has been met very positively by the sector.
Strategic expansion for SiGMA
Pulis together with BiS co-founders, Alessandro Valente and Carlos Cardama, inaugurated the conference, expressing excitement about the expansion of nyycpjw.comwide. The Brazilian iGaming Summit (BiS) in collaboration with SiGMA attracted high profile global speakers and delegates. Pulis thanked BiS for their invaluable contribution.
During the summit, year-end results for UK-based venture capital firm Ikigai Ventures were revealed. The company specializes in funding innovative technologies and iGaming start-up projects. Despite macroeconomic challenges, Ikigai identified high-potential opportunities in 2022 and continues to expand its presence in the iGaming industry.
For more information about panels, interviews and events at the SiGMA Americas Summit in Brazil this week, visit SiGMA News.
