Our exploration of the most popular stories from SBC Leaders magazine in 2024 kicks off with Elisa Marcante’s analysis of the rivalry between international and local operators in Brazil. This feature was first published in Issue 33 of the magazine.
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As global gaming giants like Flutter and MGM Resorts assert a stronger presence in Brazil, figures such as Lívia Troise, CEO of Betmais; Fellipe Eduardo Fraga, Business Director at EstrelaBet; and Andreas Bardun, founder and CEO of KTO, share exclusively with SBC Leaders their perspectives on the competitive dynamics between Brazil’s homegrown operators and the increasing foreign interests.
For some time, international operators have been eyeing Brazil’s betting industry, but momentum truly surged when Flutter Entertainment, the owner of Fanduel, pursued acquisition discussions with Brazilian firm Betnacional at a price point speculated to be around $1.3 billion. This move was quickly succeeded by MGM Resorts’ strategic alliance with local media conglomerate O Globo to launch US-based BetMGM in Brazil. MGM Resorts’ CEO and President, Bill Hornbuckle, emphasized that this partnership facilitates a swift market entry, similar to their strategy in Canada, by utilizing local technology through LeoVegas as opposed to their US partner Entain.
Lívia Troise from Betmais braces for “intense activity,” anticipating that regulatory changes and market realignment will initiate mergers among major and minor players. Troise believes that market consolidation could streamline operations, enhancing service quality and fostering investment.
Troise foresees intense competition, where smaller brands might face challenges but can seize opportunities within niche sectors. While big players like Betano and Bet365 dominate, Flutter’s keen interest in Betnacional reflects the intrinsic value of Brazil’s local brands. So, who leads among the independent operators?
### Brazil’s Leading Independent Operators
Evaluating independent operators, Betnacional, a target of Flutter, stands as a prominent local brand. Flutter’s interest and the reported valuation of $1.3 billion reinforce its standing. As part of a strategic expansion, parent company NSX Group acquired TVBet in 2024, broadening Betnacional’s reach in Brazil’s North East. Operating under a Curaçao license until securing a Brazilian license, Betnacional sponsors the Campeonato Carioca and supports cultural figures like Seu Jorge and Ludmilla.
Esportes da Sorte emerged as Betnacional’s formidable competitor within six years. Based in Pernambuco, the firm sponsors major football teams, such as Grêmio and Corinthians. Betmais, a pioneer in Brazilian gaming since 2014, also holds a Curaçao license. The São Paulo-based operator ramped up marketing efforts, achieving notable growth in deposits and user activity. Lívia Troise notes a significant uptick in first-time deposits and gaming revenue, establishing a 4% market share.
EstrelaBet operates from São Paulo and Belo Horizonte, licensed in Curaçao, and sponsors national sports events and teams. CEO Fellipe Fraga remarks on the industry’s cultural evolution, with the company drawing 10 million players and employing over 400 people. Other notable brands include Bet7k, Brazino777, and Galera.bet.
### International Competitors in Brazil
Despite a saturated local market, international entities such as Betano, Bet365, Blaze, KTO, Sportingbet, and Superbet prominent the Brazilian market’s top 20. Betano, part of Kaizen Gaming International, was the first to apply for a federal operating license, establishing sponsorships with clubs and events, including the Brasileirão and Copa América 2024. Its marketing prowess has yielded success across Latin America, securing substantial traffic and brand recognition.
Bet365 remains equally familiar in Brazil, frequently ranking near Betano in digital traffic and user trust. Although based in Curaçao, Blaze has fully committed to the Brazilian market, overcoming legal challenges and becoming a notable sponsor of Santos FC, alongside endorsements from soccer star Neymar.
Since its inception in 2018, KTO Group, led by Andreas Bardun, has sharply focused on Latin America, withdrawing from other markets to prioritize Brazil. Sportingbet, a staple in Brazil thanks to early strategic moves by former GVC Holdings COO Kenny Alexander, remains influential despite Alexander’s departure.
### Brazil vs. International Competitors
Predicting whether local brands can thrive against international contenders is complex, says Troise. However, Brazilian firms may benefit from deeper market insight and adaptability. She notes the competitive edge of comprehensive data analysis, AI integration, and the development of a wider betting ecosystem, including casino games and other offerings.
Troise stresses the importance of responsible advertising and education about industry risks to establish a trustworthy market environment. Both she and Fraga agree regulation will significantly impact operators, necessitating innovation and partnership to remain competitive. Bardun encourages Brazilian youth to consider careers in gaming, highlighting the industry’s growth potential.
While established operators have the upper hand, newcomers like KTO and EstrelaBet demonstrate rapid growth capabilities. All mentioned companies anticipate further market consolidation, with Bardun exploring possible partnerships to amplify growth.
Troise summarizes that market adaptability and consumer understanding will define the industry’s success, while Bardun sees numerous opportunities for both local and international players in Brazil’s dynamic market. He is optimistic that Brazil will become a crucial hub in the global betting scene.