
The recent transition to a regulated betting framework in Brazil marks a pivotal moment for the industry, offering significant opportunities alongside unique challenges.
Don Jaques, VP Americas at OpenBet, outlines six critical strategic imperatives for operators to successfully navigate this evolving market, drawing on comprehensive research and market projections from the company in partnership with H2 Gambling Capital.
Enforce strong compliance measures, including geolocation and player protection
Brazil’s shift from a gray market to a regulated environment marks a critical evolution in its betting landscape. For years, the absence of specific regulatory oversight allowed both local and international operators to capitalise, rapidly building extensive customer bases.
However, this lack of supervision also left bettors and operators exposed to unregulated practices, including scams and fraud. With the introduction of strict regulations, the focus is now on establishing a safer, more transparent market where both operators and players are protected under a clear legal framework.
Central to this regulatory landscape is Ordinance No. 722, which outlines comprehensive guidelines for the operation of betting systems and platforms. These measures mandate the use of precise geolocation technology to ensure all betting activity occurs within authorized areas.
This requirement not only ensures compliance but also safeguards operational integrity and protects bettors from unauthorised and illegal activities.
As well as high precision location tracking and fully flexible geo fence management, OpenBet Locator plays a crucial role in fraud prevention, with location spoofing, jumping and VPN detection combining to supercharge operators’ fraud operations capabilities as has been the case in the United States where similar geolocation requirements have been in place for more than 10 years.
While geolocation requirements ensuring betting activity within authorised areas are a key aspect, the ordinance extends far beyond that. It establishes stringent standards for everything from data center management to system certification, ensuring both operational integrity and regulatory compliance.
A crucial part of this includes integrating robust player protection measures. Advanced technologies that offer real-time monitoring and responsible gambling features will not only meet regulatory standards but also foster trust and enhance the betting experience.
As Brazil’s market evolves, these measures will become increasingly important for creating a safe and secure betting environment.
Understand and adapt to local culture
Cultural sensitivity is key to success in Brazil’s sports betting market. The country’s diverse and vibrant culture requires operators to tailor their content and marketing strategies to align with local interests and behaviors.
A deep understanding of Brazilian sports culture, especially the passion for football, and adapting betting offerings and marketing approaches accordingly will enhance relevance and appeal. Operators who invest in localised strategies and culturally informed operations will differentiate themselves and build stronger connections with the Brazilian audience.
This attention to local culture, or tropicalization, can manifest in a multitude of ways. From payment methods such as PIX, to localised content on casino and sportsbooks where football is #1, #2 and #3 in terms of sports, to the channels in which operators will engage with their players – WhatsApp is one of the most popular means of communication across Brazil.
Deploy scalable and resilient technology
Scalability is a critical consideration in Brazil’s sports betting market. With H2GC projections suggesting the market could reach US$10bn (R$47.2bn) in GGR by 2029 and an estimated 39 million active online betting accounts by 2026, operators must be equipped to handle significant traffic volumes.
OpenBet’s powerful Betting Engine is designed for this level of demand, handling over 100,000 bets-per-minute and facilitating more than 3 billion bets annually, all with zero downtime.
The ability to manage high transaction volumes and ensure consistent performance during peak times, such as major Brasileiro Serie A matches, is essential. Investing in scalable and reliable technology infrastructure will be key to sustaining operational excellence and providing a consistent betting experience.
It is also crucial to develop and maintain trust and this goes hand-in-hand with other user experience factors, such as smooth customer onboarding and processing instant payment transactions. Consumers will have choice and it’s important to get these hygiene factors right – while hygiene, it doesn’t mean it is easy to do.
Leverage superior content and betting features
As Brazil transitions into a regulated market, the quality and variety of betting products available to local players are set to improve dramatically. The introduction of tier 1 providers, which more commonly operate within regulated environments, will elevate the overall betting experience by bringing advanced platforms, enhanced services, and innovative products to Brazilian operators and bettors alike.
To stand out in Brazil’s competitive market, operators should offer a diverse range of betting options and innovative features. Football remains the dominant sport, representing 86% of the market’s GGR according to H2GC, but expanding the variety of available markets and betting types can significantly boost user engagement.
Features such as in-play betting and BetBuilder, which allow for customised bets as events unfold, cater to the sophisticated preferences of Brazilian bettors. These options not only drive engagement but also support higher profitability, as seen with multiples bets, which deliver a significantly higher margin compared to single bets.
Implement effective risk management strategies
Brazil’s large population and betting market forecasts, means effective risk management becomes more critical than ever. The country’s large population and expected surge in betting activity present unique challenges for operators.
With an anticipated 4 billion wagers projected by H2GC in the onshore sports betting market by 2026, Brazil is quickly catching up to mature markets like the UK, which sees around 4.4 billion wagers annually despite having a third of Brazil’s adult population, according to H2GC. This highlights the vast potential as more recreational bettors enter the market.
The influx of high transaction volumes combined with relatively low individual player values creates an environment where even minor inefficiencies in sportsbook offerings can be exploited.
This is particularly challenging in a market that will see sophisticated bettors actively looking for weaknesses to maximise their returns. Effective risk management strategies are essential to navigate this complex environment, Operators must implement sophisticated strategies that can adapt to these high volumes while protecting margins.
Embrace OpenBet’s complete betting ecosystem
Successfully navigating Brazil’s regulated market requires a comprehensive approach that integrates advanced technology, regulatory compliance, and engaging betting experiences. By embracing a complete betting ecosystem, operators can streamline operations and elevate the player’s experience.
A cohesive approach combines trading tools, scalable betting technology, robust compliance services, and innovative fan engagement solutions, ensuring operators are well-equipped to meet the demands of Brazil’s evolving market.
This strategy combined with the 25 years’ experience provides is essential. We have a proven track record of working within the world’s most complex regulatory requirements, including with numerous state-owned lotteries, which has allowed us to gain insights that most other suppliers are not able to offer.
Brazil’s regulated market presents a wealth of opportunities for those prepared to address its unique demands and OpenBet is the provider that is perfectly positioned to do so. Focusing on tailored services and products, alongside teams with specialist knowledge, drives differentiation.
Operators can create unique, localised experiences that resonate with bettors, allowing them to stand out and capitalise on this promising opportunity.