Waiting for the boom in Brazil’s sports betting sector
“Brazil is a booming market” says sports betting expert Dinos Stranomitis during an interview with SiGMA News.
He explained how in 2017 the first country to implement gaming regulation was Columbia. “The country has a population of over 40 million,” he said. “Can you imagine the potential in Brazil with a population four times bigger?”
Gambling scenario in Brazil
LH: What are your thoughts about the potential of the Brazilian gaming market?
Dinos Stranomitis: When gaming will be regulated, it will be much more consistent to do business in Brazil. My belief is that you don’t wait to enter the market after it is regulated but you need to make a headstart by entering the market before. I believe that this is the right time now to make headway in Brazil and to put the right fundamentals down as a company. I go there often which is why I will go there again next week. I go to explore new territory. For Altenar, Brazil did not start now. We have been increasing our presence in the country for the last few years.
LH: What will you do during your trip to Brazil this month?
Dinos Stranomitis: We will visit our affiliates and business partners and look at developing our business further to lay the foundations for when the market is regulated. We will also investigate what is happening in other neighbouring countries in the LatAm region. Brazil is a different situation from Argentina, Chile, Paraguay and Peru. I make sure I keep up to date with developments in the market, different trends and to remain close to operators and associates. I need to be in Brazil often – before the market really sets off. I am also looking forward to attending the SiGMA Americas summit in Sao Paolo.
LH: What is your gut instinct about the potential of sports betting in Brazil?
Dinos Stranomitis: In Brazil people love local football. I have heard much about other popular sports in the country, for example, The Ultimate Fighting Championship, bingo and so forth. But people adore local football, it is very much part of the local culture. All the rest is window dressing.
LH: What do you think is unique about the Brazilian sports betting sector?
Dinos Stranomitis: When you are in sports betting you care about every international event but not as much for local leagues. Brazil is the same as many other countries, the locals love local sports. The bottom line is that local leagues specific to a country will make more money for an online operator than international events.
LH: Once regulation in Brazil is implemented, what outcome do you expect?
Dinos Stranomitis: We all know what the regulation in Brazil will be like. It is not as bad as we thought initially. However, the Government is requesting BR35 million as an entry fee for operators. That is in the region of US $5-6 million. This is very expensive for some operators and eventually it will encourage some offshore companies to carry on offering their services. When regulation finally comes through, the entry fee will be a barrier to a large number of operators as it is too high. I believe that when it happens we will see up to 15 companies applying for a licence. I believe that a number of other operators will try to keep working illegally.
LH: What would be the ideal situation for the future of gaming Brazil?
Dinos Stranomitis: Ideally the Brazilian government could be a bit more cautious on the entrance fees. The Government can regulate the industry whist giving the opportunity for everyone to bet legally and still collect reasonable taxes. Operators working legally in the jurisdiction will open up the job market and create more work for locals.
Sports betting tips
LH: The outcome of sports can be somewhat unreliable. What is the basis of your forecasts?
Dinos Stranomitis: Sports betting forecasts are very complicated to work out and rely on maths with surprise outcomes as a result of unpredictable factors such as last minute injuries of important players. Sportsbook is an ever growing market. It will become even more competitive with cutting edge technology.
LH: Can you share with us some tips on betting odds for the upcoming French Open?
Dinos Stranomitis: If you want a tip on the French Open, we have Roland-Garros. We are told that Rafael Nadal has pulled out of the French Open and is not playing due to an injury. It seems he is also planning to retire next year. The organisers at Roland Garros have made a statue of the 13-times champion. I personally doubt that we will ever have a single player who will win so many times in the future. It is likely we will need many years to see this record from another person. My prediction is for another Spanish player to win and I can say that my bets are on Carlos Alcaraz.
SiGMA News spoke with Dinos Stranomitis, Co-Founder of sportsbook solutions provider Altenar where he heads an international team of traders, risk managers, operators and IT developers to compile odds and analysis on live betting and sports related gambling.
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STOP PRESS: SiGMA Americas – World iGaming Festival will take place in Sao Paolo from 14 -18 June.
