67% of the gross profits will be taken up by sports betting
With Brazil’s regulated gaming sector constantly improving, combined with its sports fanatic culture and an improved functioning of the online infrastructure of the country, more opportunities in gaming and betting are arising everyday, making the region one of the best for the gaming sector.
According to BtoBet, Brazil is a future giant of gross profits, questioning it as “LatAm’s largest regulated market in the making” in its Brazils Betting Focus’ latest report.
By 2024, the iGaming and sportsbook platform provider predicts a growth of $101bn in gross profits, with sports betting taking up 67% of the total betting market.
In 2017, the illegal sector had an income of $6.4bn, reported by Brazilian Legal Gaming Institute (IJL), but experts believe not only on an increase on profit, but a measurable growth in the creation of new IP´s for the countries gaming landscape, once the legal framework is established in the country.
BtoBet explained in its latest report “Market experts are hopeful that an open licensing structure will be adopted. However, whilst this seemed to be the case in the first public discussions led by the Brazilian government, this scenario has changed (…) In fact the third draft of the regulation has seen the Brazilian government shift its stance from an authorisation-based licensed system (open licensing structure where there are no fixed number of licenses) to a concession-based system, which might in itself include a bidding process.”
Regarding the concession based system of Brazil, Luiz Felipe Maia, lawyer at FYMSA advogados, explained “By limiting the number of licences, we will only be creating excuses for unlicensed operators to continue operating offshore”.
Apart from the constant growth of mobile connectivity, despite a slight dip recently, one of the barriers crucial to the growth of online gaming will be the full acceptance of digital payment methods, and even though the trust for these methods is still a bit uncertain, it is accelerating on the daily, with credit card payments occupying 71% of the transactions, cash by 21% and bank transfers or e-wallets at 4%.
SiGMA News is now covering four different regions: Europe, Asia, Americas and Africa. Find the latest breaking news and updates on anything related to gaming here!