Top factors for iGaming operators eyeing Brazilian market

Lea Hogg 1 month ago
Top factors for iGaming operators eyeing Brazilian market

As the Brazilian iGaming market expands, operators are flocking to São Paulo for SiGMA, eager to explore opportunities in this dynamic landscape. They encounter a unique blend of challenges and prospects. A deep understanding of the local culture, iGaming preferences, regulatory climate, and technological inclinations is vital for success.

Andrea Giuliani, a Brazil specialist from WA.Technology, shares his insights on the top five factors for iGaming operators aiming to establish their presence in Brazil. He provides valuable insights into player preferences and behaviours, ranging from payment methods to game selection and the configuration of betting networks. Here’s what you need to know to effectively navigate the intricacies of the Brazilian iGaming scene.

Prevalence of Pix as a Payment Method 

The most crucial factor is the widespread adoption of Pix. Created by the Central Bank of Brazil, Pix is transforming payments with its ability to finalize transactions in seconds, operating 24/7, including holidays. Unlike traditional methods constrained by banking hours and can take more than a day, Pix operates smoothly across various financial institutions. Given its convenience, it’s unsurprising that Pix now represents over 90 percent of payment transactions among iGaming customers in Brazil. The platform has processed an impressive 28.5 billion transactions annually, positioning Brazil as a global leader in instant payments. This trend is significant for operators as the Brazilian government is likely to designate Pix as the sole authorized payment method for sports betting and iGaming to bolster responsible gambling measures.

Local Content Preferences: The Demand for Fast Games 

Brazilian players exhibit a marked preference for fast-paced games, mirroring a broader trend within the country’s gaming community. According to data from Agencia Brasil, the Brazilian eSports market is among the largest globally for the 18-30 age group, alongside the USA and China, underscoring a cultural preference for fast-paced games. This trend influences the choice of games and the development of content specifically tailored to the market, ensuring it resonates with local players. Introducing popular fast-paced games, such as various types of digital slots and quick-play lottery-style games, could be crucial for effectively engaging this audience. Despite the shift in game choice, safe and manageable play remains a top priority.

The Importance of Instant Payouts 

The topic of payments reappears in our top 5 – this time concerning payouts. In Brazil, the expectation for instant payouts is particularly strong, likely driven by the same cultural preferences that have popularized Pix. The speed at which players expect to receive winnings can significantly influence their loyalty and satisfaction with the gaming platform. Operators need to incorporate robust payment systems that not only accept deposits but also ensure rapid withdrawal processes to meet these expectations, leveraging technologies capable of handling high transaction volumes efficiently.

Sports Betting: A Retail-Driven Market 

Despite the rise of online platforms, sports betting in Brazil remains heavily retail-driven. Many players prefer placing bets at physical terminals, which are widespread throughout the country. This preference underscores the importance of a dual strategy that combines a strong online presence with access to physical betting options, potentially through partnerships with local retail networks or by establishing branded terminals in key locations. A key element for the preference for retail bets is the level of distrust for online purchases that exists in the Brazilian market. According to an online consumer study conducted by Americas Market Intelligence in 2023, 34 percent of adults still have reservations about shopping online for fear of being scammed. Therefore, establishing or tapping into local retail networks in Brazil will contribute to the level of trust during purchasing.

Navigating Affiliate Networks in Brazil

A strong understanding of how the affiliate networks are set up in Brazil is crucial for tapping into the Brazilian market. Operators should understand that in Brazil there are often as many as 6 layers to an affiliate network. Affiliates that can navigate the nuances of Brazilian consumer behaviour and effectively promote iGaming platforms will be instrumental. This involves careful selection of partners who not only understand the local market but are also skilled in employing strategies that resonate with Brazilian bettors.

WA.Technology’s expertise in Latin America ensures operators can more effectively enter and thrive in the Brazilian market by understanding and integrating these fundamental considerations. WA.Technology’s strategic partnership with Latam Entertainment and in-house local experts provide iGaming operators with the tools to address these needs, such as advanced payment solutions like Pix, swift payout methods, dual-channel betting options, and tailored and localised game content for fast-paced, immersive experiences.

Find the WA.Technology team at Stand J115 at the Transamerica Expo at SIGMA Americas on 23-25 April 2024.

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