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Challenges and opportunities in Italy and Brazil, a conversation between country managers at Stake
In an exclusive interview with SiGMA News, Fabio Bufalini (main image, left), Country Manager for Italy at Stake, and Thomas Carvalhaes (main image, right), Country Manager for Brazil at Stake, shared perspectives on operating within these contrasting markets. Their conversation explored the unique challenges and opportunities present in Italy’s mature market compared to Brazil’s developing landscape.
Italy’s established market
The Italian gambling market has been regulated for more than 15 years, beginning with sports betting and poker and later expanding to casinos. As Bufalini emphasises, “the market is huge, with many established local and international operators.” This maturity comes with high consumer expectations and established practices that dictate how businesses engage with customers.
However, the competition is fierce. Stake’s goal in Italy is not only about capturing market share but also establishing credibility in the larger regulated environment. “Entering a mature market like Italy provides a strong platform for credibility and allows us to create a stronger presence in regulated markets globally,” explains Bufalini.
Brazil’s potential
In contrast, there is ample room for development in Brazil. Following the legalisation of sports betting and skill games in 2018, the country is embarking on a journey toward a more fully regulated market. Carvalhaes is eager to point out that, even where gambling is concerned, there is more to Brazil than football: “There’s a bit of a misconception because we love football.”
Throwing a glance towards his Italian counterpart, he adds, “We have five World Cup titles, but that doesn’t necessarily mean that we’re only about sports betting. Of course, sports betting has led the way to where we are now in terms of regulation, but the Brazilian population are more inclined towards RNG-based games, betting on chance, superstition than anything. You need to understand the Brazilian way of life and how superstitious the culture is, the way Brazilians behave, like getting off the bed on the right foot, not walking under a ladder and things like that. And this resonates with their betting behaviour as well.”
The Brazilian cultural nuances shape customer preferences, presenting a unique opportunity for Stake.
“The market is promising, and mobile web penetration is exceptionally high, offering a vast potential audience for innovation in betting,” he adds. This contrasts sharply with the steady, careful approach required in Italy.
Regulatory stability in Italy
Operating in Italy means dealing with a well-defined regulatory framework. However, the rules can be restrictive, especially regarding advertising when compared to Brazil. “Since 2017, there has been a total ban on advertising gambling services,” Bufalini explains. With just a hint of envy, he adds, “If I compare this to Brazil, you can go out with the brand and advertise freely. So this can be a huge opportunity, depending on how much you want to invest and compete.”
The ban on gambling advertising in Italy forces companies to be more creative in promoting their brands. Bufalini notes that they can engage in brand awareness campaigns but must avoid direct calls to action for gambling activities.
“If I can compare to Brazil, you can do whatever you want in Brazil right now. You can go out with the brand and advertise all over the world. So this can be a big, big opportunity because it also depends on how much you want to invest and compete with the others.”
In Italy, strategies focus on increasing brand visibility through sponsorship and partnerships rather than direct marketing activities.
“We rely on affiliate partnerships and innovative branding strategies to create a presence in the market,” he says.
Brazil’s regulatory evolution
Brazil offers a mix of uncertainty and opportunity. As Carvalhaes notes, while operators can advertise freely, they must prepare for possible changes as regulations mature.
“The Brazilian market needs a long-term vision,” he stresses. “It’s going to be a marathon, not a sprint. The brave operators are those who will capitalise on the market’s growth potential. There’s not a single market that has done it absolutely right from the top in terms of regulation. There’s always learning curves. It’s up to us operators to work alongside the regulators, the government and ensure we’re on the same page and we’re heading towards the same place.”
Given this volatility, Stake is capitalising on innovative marketing techniques and partnerships.
“We’re excited to work closely with regulators to shape a responsible gaming environment that benefits everyone,” Carvalhaes states. “The emphasis on collaboration with authorities while fostering a robust player experience will be key.”
The tradition of gambling in Italy
The Italian market has a well-established gambling culture shaped by tradition and a strong emphasis on sports, especially soccer and tennis. Bufalini describes how this familiarity with gambling translates into expectations for quality and entertainment.
“There’s a lot of emphasis on authenticity and tradition. We need to ensure that our offerings align with Italian consumer sensibilities.” As an example, he compares the decline in poker’s popularity in favour of casino games and sports betting. “The growth rate for casino and sports betting is around 20% a year, reflecting changing player habits,” he explains.
Brazil: A culture of superstition and chance
In Brazil, the cultural landscape significantly influences gambling behaviour. Carvalhaes notes, “Brazilians are superstitious, which resonates deeply in their betting behaviour. Small rituals and beliefs influence how they approach games of chance.”
This perspective suggests that marketing strategies must incorporate aspects of cultural engagement that speak to these beliefs. The excitement for football remains, but as Carvalhaes emphasises, the market is also ripe for innovation in RNG games that capitalise on local customs.
“The challenge is to create a unique experience that aligns with these cultural nuances while maintaining compliance with evolving regulations,” he says.
Focus on product quality and user experience
The conversation inevitably led to the importance of product quality in maintaining competitiveness. Bufalini emphasised the critical nature of product development and integration, noting, “The product is crucial. It’s the first part. So we need to be at the level of competition…we will not push launch until this is done properly.”
He elaborated on the need for thorough integration and compliance with local authorities before launching and communicating the product, “meeting local standards is fundamental”. According to the Bufalini, this careful approach to product readiness is essential in every market, and marketing efforts should only follow after ensuring a competitive level of product differentiation.
Thomas Carvalhaes added the importance of user experience as key to product differentiation. He mentioned regulatory limitations that dictate what can be offered, stressing, “For me, one of the key things is UX, the end-user experience.”
Thomas highlighted the importance of exclusive offerings, but emphasised that exceptional user experience and customer retention strategies are what truly set operators apart. He pointed out, “Albeit in Brazil we cannot offer a welcome bonus now, there’s so many clever ways…to keep bringing that customer back.” Thomas concluded that innovative strategies in user engagement and customer service are vital for maintaining customer loyalty and competitiveness in markets with stringent regulations.
Strategic differentiation for success
The dialogue between Fabio Bufalini and Thomas Carvalhaes illustrates how Italy and Brazil offer diverse opportunities for Stake’s growth and innovation despite their distinct market characteristics. Italy, on the one hand, is a mature market characterised by established player preferences and stringent regulations, which requires a steadfast commitment to brand loyalty and a creative approach to marketing — particularly given the advertising restrictions.
Brazil, on the other hand, is rich with cultural nuances and a youthful, tech-savvy audience, is ripe for a flexible, innovative strategy – one that embraces new trends and marketing techniques. Both leaders were quick to recognise the importance of understanding local customs and regulatory frameworks, which form the backbone of their respective market strategies. Ultimately, success lies in adaptability, collaboration with regulators, and a deep understanding of consumer behaviour in both contexts, which allows operators to effectively face the challenges ahead while capitalising on the opportunities presented by these diverse markets.
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