Introduction: Setting the scene
Introduction:
A waking giant
B
A report put together
by KPMG suggested
a combined online
betting and gaming
market would be worth
up to $2.1bn annually
4
razil has often been referred
to as a “sleeping giant” by
those in the igaming industry.
Indeed, this is exactly how one of
the commentators we spoke to for
this report described the country.
A population of 210 million with
a clear propensity for gambling –
albeit largely illegally at present
– and a huge sporting culture
has understandably given rise to
widespread optimism about the
Brazilian opportunity.
Until late last year, however, there
was little indication as to when the
industry would be able to seize that
opportunity. But with the signing
into law of legislation to legalise
sports betting in December, it’s fair
to say the sleeping giant is now
waking up.
Although the structure for the
regulated sports betting market
will be decided over a two-year
consultation process and the details
of how the regulation will unfold
are still unclear, analysts and market
watchers are hopeful an open
licensing structure will be adopted.
If that comes to pass, analysis
from Morgan Stanley suggests
that the Brazilian sports betting
BRAZIL The regulated opportunity in Latam’s largest market
market might be worth up to £1.6bn
annually at maturity within five
years. The team suggests there is
an untapped enthusiasm for gaming
in the country, where the regulated
offering is currently confined to the
lottery and a small amount of horse
race betting.
Although much of the attention is
currently focused on sports betting,
more immediately, the instant lottery
concession (Lotex) will be decided
imminently, while there are also
plans for a bill allowing integrated
resort casinos across the country.
Online gaming is also a potential
prospect, although any progress
would likely depend on a successful
sports betting launch. A report put
together by KPMG on behalf of
the Remote Gaming Association
(RGA) in late 2017 suggested a
combined online betting and gaming
market would be worth up to
$2.1bn annually.
This report looks at the current
state of play in Brazil, discusses what
future regulation could look like and
how this will impact market size, and
considers which operators are best
placed to benefit from a regulated
market in the country.