Sports betting in Brazil has been a topic of discussion since the passing of Provisional Measure 846/10 in December 2018, allowing for the formulation of sports betting laws. The government has extended the timeline until the end of 2022, opening up opportunities for operators to focus on Brazil’s enthusiasm for sports like football and its thriving esports market.
Brazil’s esports market has been a priority for Abios, with its founder and CEO, Oskar Fröberg, highlighting the country’s prominence in League of Legends and other esports. The intention is to legalize or regulate both sports betting and esports betting by the end of 2022, which Abios closely monitors as a provider of odds products in various licensed regions.
In South America, there is a significant demand for sports-themed gaming such as FIFA or esoccer, and Brazil is no exception. The country’s passion for soccer/football extends to esports, making it an attractive market. The Brazilian regulations for sports betting encompass esports, including requirements for operators to have a subsidiary in Brazil, potentially increasing costs and limiting competition, which may benefit established providers but pose challenges for startups.
While the regulation landscape remains uncertain, there is a thriving esports market in Brazil. Fröberg believes that attracting bettors to esports is not a concern, as certain esports communities already have a strong appetite for betting. The focus should be on getting esports players to engage in betting rather than attracting traditional sports bettors. Marketing efforts may need to navigate strict advertising regulations to avoid backlash.
While Brazil is the most compelling market, Latin America as a whole presents a vibrant opportunity for investment. Fröberg sees Brazil as a prime market for future growth in esports and sports betting due to its large population, growing economy, and increasing disposable income. Many leading companies are heavily investing in Brazil and Latin America due to the positive trajectory of the market.
Brazil holds a unique position in the betting world, with enthusiastic sports and esports audiences, growing interest from operators, and strong support for an esports-led strategy. It serves as a significant testing ground for the potential success of such a strategy.
