SBC News Voice of the Sports Betting Industry
It cannot be underestimated how big a year 2024 is for sports betting. The Olympic Games, the UEFA European Championships and CONMEBOL’s Copa America all have the potential to be betting bonanzas.
The latter, especially, could be crucial given that Brazil – Latin America’s largest country with a football-frenzied population – is establishing a regulated framework for betting. Given the anticipation around potentially one of the world’s biggest markets, it is crucial that operators know what will work in the country.
Sportingtech, a sportsbook platform provider, has been conducting research on Brazil for the last two years in a bid to gauge the shape of the country in the event of a regulated framework.
Tommy Molloy, the firm’s Chief Product Officer, told SBC News about the data-driven approach Sportingtech is taking into Brazil as well as how to achieve success in what will likely be the hottest market in the world.
SBC: Brazil is finally establishing a regulated framework for sports betting after a seemingly never-ending wait – how excited is Sportingtech to be a part of this next chapter for Latin America’s most populous nation?
Tommy Molloy: We couldn’t be happier to see regulations finally getting the go-ahead in Brazil after what has been a lengthy process. It is no secret that Brazil is a market with enormous potential and this view certainly has not changed as operators prepare for licence applications to open later in the year. We have planned meticulously for several years in anticipation of regulated sports betting, so we are excited to secure our reputation as the leading supplier for operators in the country.
SBC: There have been fears over the channelisation rate due to President Lula’s player winnings tax rulings. How do you think this will play out in practice and how will market stakeholders try to steer players towards the regulated market?
TM: The 15% tax on winnings is half of the figure that was initially proposed, which is positive, although we are still very much aware that the final bill is yet to be rubber stamped so we will keep our ear to the ground for any further amendments. Operators and suppliers need to market content and products in the correct way to attract bettors.
As an industry, we need to promote safe wagering experiences, so customers can enjoy standout platforms with jam-packed product portfolios without taking risks. The positives of the regulated market far outweigh any negativity surrounding the proposed 15% Individual Income Tax on net winnings. With more than 130 brands reportedly expressing interest in obtaining a licence, there certainly doesn’t appear to be concerns that bettors will stray from the regulated market, and it is generally agreed that most people prefer to bet in these circumstances than take risks.
Education and awareness campaigns need to be in place by stakeholders to show players the benefits of wagering in a regulated space. Alongside this needs to be impactful marketing campaigns, although there is still some red tape surrounding what operators will be allowed to promote and the associated messaging. Naturally there needs to be a crackdown on unregulated operators and regulated brands need to make their voices heard to the relevant lawmakers. A united front can ensure that bettors are active in the regulated space.
SBC: With such a passionate population full of sports fans, particularly football, what methods can be deployed within a platform to engage these fans and convert them into bettors?
TM: Seamless, localised experiences are key. Bettors want easy to use products that gives them what they are looking for in an accessible way. The more this can be delivered to them, the more they will engage. Brazilian customers should have access to a website or app that is clearly aimed at their specific tastes, in their own language with content they enjoy, in one or two clicks.
Having tailored content continues to drive operator growth and convert sports fans into bettors. They want to be provided with sports or markets that we know are relevant to them and that we know will appeal to them after analysing behaviours and preferences. If they are able to place bets within a couple of clicks or swipes then this will ensure platform satisfaction and meeting their expectations.
SBC: Sportingtech has notably enjoyed success in Brazilian markets, particularly in the latest Serie A season. What does it take to win in Brazil and what type of products resonate the best with Brazilian bettors?
TM: We have spent more than two years conducting market research in Brazil to position ourselves as trusted suppliers in anticipation of this year’s regulation. Brazilian football fans value community and they are passionate about their home teams and leagues. As a result, we enhanced our Bet Builder product with the inclusion of Serie A stats that we know resonate with their betting behaviours.
By integrating the Brazilian Serie A into our Bet Builder, we have seen fantastic engagement and results, with an impressive 10,000 bets placed using the feature during each match across the 2023 season. Brazilians like to bet as early as possible, with around 75% of bets on Serie A football placed before the game starts, so having markets priced-up quickly pre-match is vital.
Brazil has also seen a boom in social media influencers as internet adoption has increased. Because of this, we have integrated Share-a-Bet functionality into our offering so customers can share their betslips with friends on social media. By amplifying our sportsbook offering with this feature we help our clients acquire new customers, build brand awareness, and increase conversion rates.
SBC: It is often said that localization is key to success in Latin America, and I’m sure this is also the case for Brazil too. How do you cater your sportsbook platform towards different demographics?
TM: We are fortunate to have teams around the globe who research player behaviours and analyse a vast array of data to help us enhance our products and services. We can drill down into the patterns observed and ensure that we are hitting the relevant audience segments with appropriate content. We have built our platform in a modular way particularly the front end where we are able to populate a multitude of key modules at the touch of a button allowing our operators the flexibility to tailor their websites to maximise their offering. We do not rest on our laurels and are always speaking with our product teams about how we can create further bespoke solutions for our partners and their customers.
90% of people who have a mobile phone in LatAm use an Android as opposed to an iPhone, so it is imperative that our products are functional across both operating systems. This is a prime example of how we ensure that all segments of the audience base are catered for, with research and data driving our innovations.
SBC: What groundwork has Sportingtech done to become a trusted partner for operators looking at the Brazil market as a key target and, among a raft of other providers, what makes your platform stand out?
TM: We have been planning for quite some time and created an outstanding reputation across LatAm. Our knowledgeable team is passionate about our brand. They are experts in getting to grips with the latest regulatory frameworks. Our product and sales teams also help to ensure our platforms meet the necessary criteria and can deliver to the highest standard.
We pride ourselves on remaining fluid and exploring any opportunity. Understanding the player base within each jurisdiction and what it enjoys most is of great importance. We have customisable and tailored solutions and we are able to produce dynamic features within our platforms to enrich player experiences.
SBC: What are Sportingtech’s plans for both SBC Summit Rio and its operations in the country over the next 12 months?
TM: Our attendance at SBC Summit Rio will be no different than others in the calendar. We will be speaking at length with partners old and new, and understanding their requirements as we prepare to deliver our bespoke products and services. We will have our core LatAm team in attendance, some of whom speak Spanish and Portuguese, to help facilitate positive conversations.
We will be looking to further enhance our footprint in Brazil over the next 12 months having already created an impressive reputation and 2024 will be about utilising our tools and capabilities to deliver both before and after licence applications formally open.
