SBC News Voice of the Sports Betting Industry
In the aftermath of a successful SBC Summit Rio, Dotan Lázar, CEO of LSports, assesses the challenges facing sportsbooks within Brazil following a landmark development last year.
On December 30, 2023, Brazil witnessed a historic moment as President Lula sanctioned Law 14790, marking the finalisation of sports betting regulation. According to reports, over 100 businesses have shown interest in applying for a license since. Yet, Brazil’s journey toward regulated betting remains winding.
Clarity needed
Despite the progress made, concerns still linger among sportsbooks and industry players. Key worries include the anticipated stringent restrictions on bettors, including a 15 per cent taxation on winnings and a low ceiling of maximum winnings (R$2112 = approximately $423).
Overturning this executive decision is crucial for bookies to ensure a sustainable client base and growth potential. Early-stage sportsbooks may also struggle with the high cost of license acquisition (R$30m for a five-year license) and a lack of technically skilled manpower for product implementation and client support.
Threats to integrity are another issue. According to reports, Brazil continues to lead the world ranking of yearly suspicious sports events. This deterring fact, alongside political instability affecting decision-makers in the sports betting sector, makes operators tense about entering a newly regulated market without a strict and protective framework.
Above all, there’s a general lack of clarity regarding the conclusive restrictions that will be applied to the sector. While current regulations are open to different interpretations, it is clear that any aggravation of rules may result in billions of dollars being wagered on offshore operators rather than regulated ones.
Combatting challenges
While everyone eagerly awaits definitive guidelines, sportsbooks must arrive prepared for take-off. In a climate of uncertainty, collaborating with proficient partners with a proven overall track record in Brazil can provide them a crucial advantage in a highly competitive regulated market.
This is particularly important when selecting a data provider. Variety means reaching wide crowds, a crucial objective in a vast country like Brazil.
This is why access to a comprehensive data set covering domestic and international, niche and popular events is essential. The two other sides of this data triangle are speed and accuracy. Ensuring your data is provided in real-time after a thorough verification process can prove vital.
Experience also plays an important part. A data provider with specific expertise in Brazil would likely have an established local presence and can offer sportsbooks the support and guidance they need to navigate the landscape.
Ideally, this should include technical aspects such as guarantees for fast product integration time, highly responsive customer support, and tailored business offerings such as localised tools, customisable solutions, and flexible packages.
Every sportsbook strives to distinguish itself from competitors by offering users a unique experience. Tech-oriented providers can assist bookies in meeting this goal by leveraging their data to develop differentiating solutions. User engagement and retention are examples of common pain areas operators should check whether their provider can address.
A long-standing commitment
For LSports, Brazil has long been a primary target. We maintain a boots-on-ground presence in the country, providing 360-degree support to sportsbooks in sales, customer service, and customer success.
With years of operation in Brazil and partnerships with leading sportsbooks, we have gathered extensive knowledge, resulting in the creation of educational reports tailored for sportsbooks at various stages of development, both before and after regulation.
Standing out in a newly regulated market presents challenges, which we address by empowering sportsbooks in Brazil with cutting-edge solutions. Our product portfolio includes fully customisable data feeds, trading intelligence solutions, and an engagement tools suite highlighted by a revolutionary ChatGPT-like sports betting chat.
Our coverage is unmatched, spanning 12,000 leagues and 2,500 markets across over 100 popular and niche sports. In Brazil alone, we cover 300 leagues and over 16,000 fixtures monthly. Additionally, we recently secured a 10-year data rights deal with the Brazilian Basketball Confederation (CBB). These strategic initiatives underscore our commitment to the evolving Brazilian market.
Meet us
LSports will be at BIS SiGMA in São Paulo! Visit booth O-80 to learn about their offerings and experience a personalized 1:1 demo of the group’s flagship solutions for sportsbooks.
