Interviews
The changing face of sports betting
With Flutter reporting a key trend of a higher proportion of accumulator bets being placed across the US, is the recreational betting market about to hit lift-off? We talk to Callum Broxton, Commercial Director at Checkd Group, Brandon Walker, Head of Amelco US and Alex Kornilov, CEO at Betegy, to get the low-down on the market, examining the role played by European suppliers in shaping the offering put in front of bettors and looking at how high-quality content and new media partnerships are driving engagement and trimming CPA for operators.
How quickly is recreational betting growing in the US and how influential are the ideas imported by European suppliers?
Callum Broxton, Checkd Group: “There has been some understandable copying of homework as the US market finds its feet, with high-margin products starting to be placed front and centre by the major operators. Much has been made of the need to educate the population on the intricacies and details of sports betting, but that same population has spent years being stats-obsessed thanks to fantasy sports and broadcasts of the games themselves. Recreational markets such as single-game parlays bundle up the knowledge they already have and present it to them in a simple, easy to consume betting product.
“There has also been a clear realisation of the organic marketing power of big wins from small stakes and the role that plays in attracting a whole new audience. Winning $10,000 from a $10 parlay is far more relatable and attainable than winning the same amount from a $5k bet on a single match to hit the over. The former is also far more likely to catch fire on social media and be picked up by publishers, operators and affiliates across the country – those sorts of stories are an invaluable marketing tool for the industry as a whole.”
Brandon Walker, Amelco: “It’s definitely growing and it’s extremely influential. Pre-defined accas / parlays are really going to take off, especially with recreational punters. Alongside that, with the likes of BetBull and its tipsters, it’s got every reason to drive serious growth.
“That’s not to say that’s all the market is going to be, but it will certainly play a big role in the landscape, especially in attracting a new generation of bettor, rather than the old-school approach of moneyline and single bets. The traditional ways of betting will always be there, of course – with the mainstay of high rollers, VIPs and singles.
“But, on the recreational side, newer bettors are going to be interested in the likes of pre-defined parlays, who will want something that can be more emotional, rather than a complex decision. Looking at Fubo for example, we’re seeing a real transition into merging entertainment with the betting experience – and that’s something that can almost be called native, rather than a European import. Combine the streaming experience, which is arguably a more US-centric idea, along with recreational betting – and you have an entirely different landscape to Europe.
“Moving forward – looking at innovation around entertainment and engagement, we’re almost only scraping the tip of the iceberg in terms of what’s out there and what can be done. Sports fans are becoming savvy to what’s available – and it’s an open invitation for excitement and engagement, and this space is set to grow even more.”
Alex Kornilov, Betegy: “It’s growing quickly, as the US in effect offers a blank state for creating an entirely new experience. As we all know, a big chunk of the market has come from recreational activities as such as skill-based betting (think DFS), which means fans are already used to the recreational element. Betting offers a natural cross-over, as they still see this as a similar skill-based activity, in the style of making an informed bet. Casino of course, is a completely different kettle of fish, but when it comes to sports DFS really does provide the base – just look at DraftKings, FanDuel, ESPN and Yahoo. You effectively have the customer base already to transfer over. It is one can argue, already there by default.
“What can be learnt from European suppliers? For me, it’s more about factors such as infrastructure and affiliate management. It’s less about the ideas here, but rather about the tech that can be supplied to support such growth. The core is definitely there to satisfy the demand, and you need suppliers (predominantly European), that can supply that tech and make it top notch.
“That’s not to say, however, that European tech can just be taken and updated – we can see plenty of examples where that tech has been taken and failed to deliver. The US has a unique set of requirements, and it needs to be repackaged and adjusted to fit the US ecosystem.”
Do you see a future where high-margin products such as single-game parlays completely take over the market?
Kornilov: “I see huge potential in quick markets, which is in effect, the generation of bespoke markets for each single event – and it’s supremely well suited in the US to the type of activities that can bring huge turnover to operators. Given the vast expanse of all US leagues across all major sports, you can begin to see the opportunity to offer real-time betting in action, literally on every shot taken. Alongside this, user generated markets (think ‘request a bet’), is another excellent example. I’ve already seen the tech in action for this, which is at the development stage – offering micro and real-time bets, and it’s definitely an area that will offer fantastic growth.
“We can see similar-style action in Europe, particularly in the UK with the Premier League. However, so much more is possible over here given that broadcasters in the US can have complete ownership on the rights of one game. This means that rather than the UK situation of broadcasting at far higher latency, the US is almost instant, enabling so much more to be done to engage and excite.
Broxton: “It seems unlikely that one bet-type alone will take over the US market. There were similar predictions made in the UK during the early days of Request-A-Bet/Bet Builder products. It’s true that these products have been at the centre of industry innovation over the last couple of years. More and more markets are being added to the selection pool and American operators are essentially able to benefit from the trial-and-error process which has taken place in mature markets.
“Ultimately, it’s a very human question and there will always be variance in behaviour. Huge sectors of the market will always prefer traditional parlays or single bets, not to mention in-play.”
Walker: “They will play a big part, but not all of it. They are not necessarily in a position to dominate the market, but this is definitely a high-growth space that holds plenty of potential.
“Just as we’ve mentioned already, this will offer a high incentive for the new generation customer to get involved in betting, as it offers what will be perceived to be a ‘bet low, win high’ outcome, which contributes to that entertainment factor. It’s still most likely that the more established bettors, who have been enjoying land-based sports betting for years (if not decades), will likely stick with the more ‘traditional’ forms of betting as it’s what they know.”
What does the future hold for the old-school American bettor, who traditionally places large stakes on the moneyline?
Broxton: “There is currently a huge opportunity for someone to become the home for the old-school bettor by offering a no-nonsense platform with the best odds. The best example of this would be the Betfair Exchange in the UK which is synonymous with hardcore punters, offering guaranteed value and top odds. The trade-off with exchange-based products, though, is that there is little to no room for innovation and they are limited to offering a fraction of the markets available on sportsbooks. This means they struggle to attract new, younger audiences as a result.
“However, there are some incredibly innovative companies attempting to modernise the exchange model in the US. Sporttrade, for example, offers an alternative, exchange-based experience aiming to capitalise on the exponential post-pandemic surge in popularity of stock/crypto trading platforms among under-30s by presenting users with a Robinhood-esque interface where they can trade bets as if they were stocks.”
Walker: That’s always going to be there. Take the Super Bowl: even prior to PASPA, the large stakes being placed were very much based on emotion and supporting the home team. I think it’s ingrained in the American DNA; and that style of betting is not going anywhere. What’s exciting is the growth in options across betting markets that should create a more exciting hybrid offering for bettors.”
Kornilov: “I would certainly say that moneylines are a good ‘gateway’ into other types of betting as it provides an initial platform to get involved.
“Dynamic withdrawals are also a good evolution of this, as it allows for the fluctuation of odds – and it offers an interesting dimension where you can open and close positions. This progression from one single bet on fixed odds is exactly what operators need, as in many ways they’re behind on the ability to cross-sell across various types of betting. This is particularly the case for our industry, as compared to the likes of Amazon, with the ability to offer recommendations for one product given the use of another lagging far behind. The moneyline therefore can offer just that platform to make the introduction to betting, as it’s the easiest to onboard a customer. You can then offer something more advanced, whether that’s micro-betting or anything else.”
How far can betting incorporate itself into the overall media and sports entertainment industry in the US? What benefits does this approach hold from a CPA perspective for operators?
Kornilov: “How far? They’re trying to do it as quickly as they can. All the key players are doing their best to divide and segment their media markets as well as possible to attract different demographics, although the speed of adoption into betting will be very much defined by legislation. Logically, the more states come online, the further this can go.
“When it comes to CPA, it’s hard to define exact metrics in many ways. Of course, it is potentially the backbone of acquisition, but it’s difficult to define CPA via brand exposure, especially given the multitude of media spend now invested in during matches, which therefore means one cannot know how much (or indeed how long) such exposure will take before the customer gives betting a try. Over time, I believe CPA will go up, as there will be significant increase in media spend and exposure. As this spend increases, CPA will inevitably do so too.
Broxton: “This partly comes down to if and when regulators step in to limit the integration of betting into broadcasts. One of the biggest challenges in an immature market is building trust, familiarity and knowledge, all of which are enhanced immeasurably by synergistic integrations across traditional and new media. In a market the size of America, even a tiny fraction of the market entering the funnel lower down equates to vast sums of money being saved for operators from a CPA perspective.”
Walker: “Fubo, again, is a great example – mixing streaming services with betting. Look at MGM, too, with Jamie Foxx being one of their key figureheads. We’ve always associated brand ambassadors with such marketing, and looking at how the entertainment industry is merging, with the likes of musicians and entertainment icons, this plays a serious role. It’s all about the glitz and glamour in the US – Vegas holds a true legacy there. Looking over to ‘soccer’ in Europe – sponsorship and advertising is massively orientated towards sports betting. It’s becoming the same with the US right now, and in many ways, we’re only just getting started, PGA and the like are starting to test the water, and slowly but surely it will drip into the industry even more. The same can be said for media rights and stadium ownership, and we’re really only just scratching the surface. As brand exposure grows over time, this will likely lower the CPA as reach and awareness steadily grows.”
Moving forward, is there a danger that bigger operators carving up the market between themselves could stifle innovation?
Walker: “Not really – the US is still an open range and, indeed, so big that it’s almost like a snowball at the moment. Give it a few more years and we’re going to be talking about it in an even bigger way.
“Innovators will always be there, and there’s still so much space for smaller operators to be agile and capture market share that it makes it completely open for competition. The US has every potential to be the world’s most dynamic market and, given the interest and pick-up that online is now attracting, there’s no reason to think that the major operators will corner it for themselves.
“Of course, the likes of DraftKings and FanDuel hold plenty of potential for majority share, but there’s going to be plenty of incentives, and indeed means, for sports fans to give alternative operators a try, especially when it comes to brands being native to certain states or associated with their favourite teams.”
Kornilov: “Yes, that is a potential risk. Hopefully we’re a long way from this happening though – because given the nature of competition, you cannot compare the current state of the US market to Europe for example, as the big players are taking a lot more space. In the US, given the nature of current competition, we’re still in many ways in the growth stage, which offers plenty of diversity of outcome. I do hope that the US will present itself as a wonderful example as to how tech leaders – and indeed strategic decision-making can win market share, rather than just weight of investment. We’re seeing plenty of money ploughed into marketing and advertising by the biggest players, but a lot of the more agile outfits are spending their money far more surgically. As a result, such informed planning can enable them the capture far more market share and revenue that would otherwise be possible.”
Broxton: “Innovation rules all when it comes to online sports betting. Operators at the top who fail to do so are left in the dust, often irrevocably, in scarily short time frames. In the US, the pedal is jammed firmly to the floor in the race to scoop up as much technological capability as possible.
“Capital being relatively cheap to acquire has fuelled the M&A heavy landscape and, paired with eye-watering multipliers, it means any investment comes at a premium, premium rate. It’s inevitable, therefore, that the markers of success will soon switch from ‘who has acquired the biggest and best entity’ to ‘who actually has the best product and can start seeing a return on the immense investments made’. Innovation will only benefit from this demand for financial justification of outlay as it’s a faultless handicapper and the all-important Gen X and Y audiences have no mercy if you fail to keep up with the competition.”
Holly Fairweather, Director of US Accounts at House of Brands provider White Hat Studios, sits down with Gaming Americas to discuss the growing influence of women in the iGaming industry, and highlights how more can be done to improve the overall gender imbalance
Gaming Americas: Since joining the industry in 2018, have you noticed a change in how women are represented within iGaming companies, as well as general attitudes?
Holly Fairweather (HF): When I reflect on the past six years, it feels great to say I have seen a lot of positive changes in our industry and more importantly, an ever-increasing drive to address gender diversity. There is still work to do, and I am reminded of this attending our industry events, where it’s very evident we still lack female presence in C-level roles and on expert panels. It’s also not hard to see walking around conferences the overall gender imbalance that exists. With that being said, I do feel it’s moving in the right direction and I am regularly inspired by women around me being promoted to senior management roles, providing great mentors and role models. Awareness of gender diversity and celebrating success is continually being pushed via various channels, and for me plays a big part in why we are seeing more women have the confidence to progress in their careers and more women enter the industry. It’s also important to say, and why I think change is happening more, that the want of women to succeed and to increase female presence in our industry, is indeed backed by a strong support network of women supporting women, but also of the men in our industry.
Gaming Americas: How important are groups like Global Gaming Women? What kind of initiatives have they offered to help your own career development?
HF: I’ll be honest, I’m still learning about all that Global Gaming Women offers. Working in the US market I see GGW as a substantial network which offers reams of support from training courses, lean in circles and mentorship and networking events just to name a few. I have taken part in a few of the industry wide networking events, and really enjoyed them, connecting with some amazing people, learning more about the industry. One of my objectives this year is to participate in more events, adding value where I can whether that’s within the GGW network or through other avenues.
Gaming Americas: What more can the industry do to make it more appealing to women and ensure they are better represented within organizations?
HF: It’s got to start within each individual company taking responsibility for equal representation. This is not a tick box exercise to achieve a target on a gender split % by x date but must be about promotions and roles being rewarded to the best candidate for the role, regardless of gender, ethnic background, or sexual orientation. We need to shout about the success stories of DEI within the industry, creating an inclusive work environment will attract not just more women but more candidates overall, increasing the talent pool.
There is also a piece around exposure and shining the light on the fantastic women we have leading the way. Sharing their career paths, the good, and the challenges, to provide relatable examples of success. To make women in gaming not about the stats or portray the headline as a negative but more around showcasing the women that are successful and why, helping more women relate and pursue a similar path if this is what they wish to do.
Gaming Americas: What advice would you give to the next generation of women that are looking to make a breakthrough in the industry?
HF: This is a good one! First and foremost, you lead your own progression. Be proactive in building your network, push yourself out of your comfort zone to attend networking events. Reach out to other women in the industry for support and mentorship. That is on you to drive.
Immerse yourself in a team with values that align with yours, a team that welcomes and promotes diversity of all types and supports and rewards on merit are key.
Build your knowledge, for me knowledge is confidence. Quickly realise it is ok not to know everything, ask the questions and find out. Be solution-oriented, supporting your superiors will get you noticed for going over and above and adding value to your team and company.
I was told ‘people do business with people,’ which I stand by and could not be truer in the igaming industry. Always treat everyone with respect, be kind, be yourself, but don’t forget to back yourself! Relationship building is so key in this industry and has helped me progress to where I am today.
Lastly, take risks. And by this, I mean sometimes you must step out your comfort zone and push yourself to try something different to progress to the next stage. So far, the most pivotable moment in my career and biggest risk I have taken, and I’m sure Andy Whitworth (CEO) and the White Hat Studios (WHS) team won’t mind me saying, was accepting the job at WHS. A brand-new supplier to the US, no content live alongside the fact I had never worked in the US market, so of course there was an element of risk. It was, however, a calculated risk as I was joining a team of experts, senior level management I had worked for previously, in an ever-growing US market. A no brainer now when I look back.
Gaming Americas: From a White Hat Studios perspective, what DEI initiatives does the company put in place?
HF: DEI of all types is something I believe increases the performance of a team, and is something we are extremely passionate about at WHS. As we grow and expand, maintaining a strong culture has never been more important. We recently held a WHS workshop in Prague, with one section of our day spent holistically agreeing and locking down our values as a team, ‘Who we are, what we stand for ‘and ‘treating everyone equally’ is now embedded in our company culture as one of our five core values.
I have been lucky in the fact I have never felt that my gender has held me back in my current role and previous igaming companies. Although I understand this has not been everyone’s experience, I truly believe the more we celebrate success, drive awareness, embed inclusion within our companies, and work together across DEI as a whole, we will continue to see women progress and take on careers in igaming.
More and more jurisdictions are introducing licensing for B2B providers in an attempt to boost regulatory oversight and restrict black market activity with Sweden and Denmark recent examples. In this piece, we talk to Greg Ponesse, Chief Revenue Officer at Compliable, about how the increased compliance burden can favour suppliers’ standing in the iGaming ecosystem.
Have you seen a shift in attitudes from suppliers to only provide products in regulated markets?
We have seen that suppliers that have traditionally taken a .com approach are starting to move towards being licensed to secure additional revenue and more customers but also to improve their overall reputation and standing. The perception of brand integrity plays a big part of the decision-making process because some operator partners might be reluctant to work with suppliers if they have a mainly grey-market approach.
In the US, supplier licensing has always been the norm, so where we are seeing attitudes changing is primarily with European suppliers. Although most suppliers might have a few licenses that they need to manage in key markets, they are now better understanding the importance of being seen as fully compliant across the board as regulation changes and operators are looking for trusted partners.
Some of these brands are massive enterprises who are now trying to get a handle on how to manage all their licenses across multiple regions, and we have seen an increased interest in our software to support that.
What has been the driving force for this – regulator pressure or business strategy?
It’s a little bit of both. Regulator pressure is definitely a big one as gambling becomes more ubiquitous and mainstream. It’s the responsibility of the government to provide structure and regulation to ensure safety for consumers and many are starting to realize that suppliers play an equally important role in that as operators. We have recently seen examples of locally licensed suppliers being fined by regulators for offering their products to unlicensed operators, so providers need to be on the ball to ensure their reputation stays intact.
That said, the grey market suppliers up to this point have stayed in grey markets because that’s what was available to them. Now you’re seeing new markets opening up like North America, which has been huge, where all states require suppliers to be licensed. These grey market players that have previously focused on Europe now see that there’s revenue over there to be gained, so they need to pull up their socks and play the game.
As a business strategy, suppliers can only remain in black markets for so long, avoiding paying taxes and declaring revenue. In a competitive marketplace, suppliers can definitely benefit from being more established and having numerous licenses. Operators might be wary to work with companies that don’t take compliance seriously so being able to show that you have X number of licenses and that you have infrastructure in place shows that you’re serious, and that you know what you’re doing. It kind of sets the table for you to have a soft landing and to be able to begin those discussions with potential partners.
A sole focus on regulated markets would suggest a negative impact on profits so what benefits do suppliers see from being licensed?
If the train is only going in one direction, you eventually have to hop on it. Moving away from grey markets will inevitably have a negative impact on profits but you then have to look at where you can find additional revenue. If you are a licensed supplier, it does allow you to work with the big local operators. You have to decide on whether you can make more money as a grey-market supplier or by going into markets being licensed and making the most of what that offers.
Do you expect more jurisdictions will introduce B2B licensing going forward?
Yes, for sure. Gambling is ubiquitous now and governments recognise that it’s a great revenue generator for them and it also helps with ensuring responsible gambling. With licensing, you provide a framework, infrastructure, and environment that is safe, and it ensures that everyone is on a level playing field. That needs to include all different sides of the industry such as operators, suppliers, affiliates etc. If everyone in the ecosystem follows the rules, it will be a better place for all.
What are the big challenges that suppliers face when it comes to licensing in 2024 and beyond?
Your licensing strategy, so basically, where you are going to go get licensed. This process takes time and resources, and you want to make sure you are prepared before you start talking with operators. They will want to know, just like as with any other vendor, if you are licensed as a supplier.
If we use the US as an example, there is no shortage of suppliers that want to partner with the available operators, so you need to know who you want to work with and where, and then you have to make sure you sort those applications properly. That is all about getting the right advice or using software because if you fail the process, you will end up at the back of the queue and your go-to market strategy will be delayed.
What, if any, are the key differences between licensing in the US and regulated markets in Europe and other regions around the world?
For starters, every state in the US acts as if it is its own country and the licensing process is very complex and rigorous. In Europe, it was initially somewhat more relaxed. You got your Malta licence, and that was then good for all countries in Europe. We’re now seeing a bit of backtracking, with more and more countries getting tougher on rules and regulation.
Increased supervision, with regulators having more oversight, means there is no hiding and I think that is what we’re moving towards on a global scale.
I do believe that most suppliers and operators prefer a regulated market because it separates proper companies from the bad ones. If I was a large operator or supplier that invested time and money into licensing and establishing a compliance team, I would feel good about that because there are so many companies that can’t do it. There’s this element of pay to play, so to speak, in order to really maximize your profits in a region.
As Brazil finally gives the green light for sports betting and iGaming, industry leaders are gearing up for a transformative chapter in 2024. In this insightful roundtable discussion, we had the privilege of engaging with key figures, namely Henrique De Simoni (Account Manager LatAm at 3 Oaks Gaming), Massimiliano Vandelli (Head of Sales at ESA Gaming), Denis Kosinsky (VP Operations at NuxGame), Ihor Zarechnyi (CBDO at Evoplay), Jack Smith (Senior Sales Director at Sportingtech), and Roman Bogoduhov (Head of Accounts LatAm at EvenBet Gaming) to delve into the exciting prospects of casino entry into the newly regulated market. Our focus centred on the meticulous preparations undertaken by suppliers, understanding local player preferences, and exploring the collective vision for the future of this burgeoning market.
As the journey to secure the final approval for iGaming regulation in Brazil concludes, what strategies and preparations has your company put in place for the upcoming market launch?
Henrique De Simoni
Despite Brazil’s iGaming market being in its incipient stages, it has transitioned from a rising star to a tangible reality. This regulatory milestone in the largest Latin American country signifies a plethora of opportunities for the entire iGaming ecosystem, spanning from operators to providers.
As a company known for its agility and meticulous attention to detail, we’ve been actively engaging with key events in the region such as SBC Brazil, and SiGMA Americas. By fortifying our network and relationships with major operators, platforms, and aggregators, we’re positioning ourselves strategically for the impending market launch.
Massimiliano Vandelli
The impending regulation of iGaming alongside sports betting in Brazil presents a pivotal opportunity for our company. We’ve meticulously prepared for this milestone by adopting several strategic initiatives. Firstly, we recognise the significance of a diverse portfolio, particularly given the potential exclusion of certain online casino games. Therefore, we’ve focused on ensuring a balanced offering to cater to varying preferences and regulatory requirements.
Localization lies at the core of our approach. Brazil’s vast and distinct market demands tailored solutions, encompassing language support, minimum bets, and game types that resonate with local preferences. Additionally, understanding the nuances of player behaviour, such as volatility preferences, is crucial for delivering a compelling gaming experience.
Furthermore, leveraging our existing partnerships with established operators positions us strategically in capturing a substantial market share. We have a track record of success with these operators, and collaborating closely with them not only strengthens our market presence but also facilitates smoother market entry.
Ihor Zarechnyi
Evoplay’s business strategy after the final approval of iGaming regulation in Brazil will involve forging key partnerships to strengthen our position in the Latin American market.
With Brazil’s population surpassing 215 million and the local audience’s passion for entertainment, our diverse game portfolio is calibrated to cater to their preferences. Our overarching goal is to replicate and surpass the success we’ve already achieved in Latin America. We focus on enhancing the gaming experience of Brazilian players by addressing their entertainment requirements.
Denis Kosinsky
As for all new market entries, our strategy for Brazil consists of compliance, localization, partnerships and innovation. Much like Europe, Brazil is a highly fragmented market and each state should be approached on a case-by-case basis. We are customizing our platform for Brazilian players by adapting to the culture in terms of language, local payment methods and games that resonate locally while our multi-brand feature can be used by casino operators to manage different geos. We’ve also turned our attention to forming partnerships with Brazil-based companies, enabling us to both broaden our reach and enhance our offering.
With smartphones dominating as the preferred device for iGaming, we’re optimising our tech’s mobile compatibility for a superior experience. In addition, our marketing efforts are tailored to engage Brazilian audiences through localized content and community events. As Brazil finalizes its iGaming regulations, NuxGame is ready to deliver a comprehensive and culturally attuned gaming experience.
Jack Smith
We have recently seen that the Brazilian government has now officially recognised GLI as a certified testing lab. As part of this we have made continued efforts to conform to GLI 19 and GLI 33 which are synonymous with other markets on a global level. In addition to that we have also been working closely with Serpro on data transfer requirements.
In terms of strategy, our stance remains the same as always. We are focused on collaborating with our operators to ensure that we give them all of the technical tools and capabilities to harness their own local expertise and continue to be successful. This is crucial in what will likely be a very competitive market.
Roman Bogoduhov
The country is still at the early stages of regulation, so setting rules and transforming them into business practices will take several long and hectic months. Traditionally, online poker is not the first vertical to be regulated, and this is the case for Brazil as well: our turn will come after sports betting and online casino games. What we are doing now is a lot of homework and preparation: connecting with the market stakeholders, getting to know the player preferences, specific market challenges, and software demands.
Product localisation and customisation are at the core of the EvenBet Gaming platform, and our offering has to be ready for the market launch. So, our business development team explores the market and identifies the features and solutions needed by the Brazilian operators and players, so that we can adapt our product to their needs.
Also, it’s crucial to mention that the Brazilian iGaming community is quite closed and somewhat wary towards foreign vendors and providers, preferring to establish partnerships with companies that demonstrate a proven success record in the local market. While regulation moves forward, we can take it slowly, creating fruitful relationships, showcasing examples of our partnership with operators in South America and educating the market on the business strategies allowing us to earn on poker.
In anticipation of the iGaming launch, which specific verticals do you believe will capture the hearts of local players, and have you identified any unique preferences or trends that are shaping your approach?
Denis Kosinsky
As part of our continuous improvement strategy, NuxGame conducts regular market research and player feedback analysis to tailor our offering and stay ahead of the tech curve. With our aims of delivering a diverse, engaging, and secure gaming environment that aligns with local player preferences, we have identified key verticals that are poised to captivate local players.
Mobile gaming is one of the largest growing trends worldwide and Brazil is no different. NuxGame’s platform has optimized games to present a seamless mobile experience, catering to this increasing demand. Looking at specific genres, live dealer games perform particularly well in Brazil. For these titles to flourish moving forward, it is important to ensure that there is a Portuguese-language option in addition to high-quality live streaming and a diverse array of experiences to engage as many players as possible. Brazil is also a large adopter of cryptocurrency and blockchain technology. NuxGame’s Web3 technology and cryptocurrency purchasing feature position us to leverage these technologies for secure and efficient gaming experiences.
Ihor Zarechnyi
Initial findings from Brazil reveal a strong preference among the local audience for online casinos and sports betting. Based on third-party market research, it appears that Crash games capture the attention of 79.61% of Brazilian players. Following closely behind are slots, with a significant 39.83% engagement. Leveraging these data and our experience in the LatAm market, we’re confident that Evoplay’s diverse game portfolio, particularly our sport-themed titles, will deeply resonate with this audience.
However, despite our solid foundation, we remain committed to further understanding the local business culture and refining player communication approaches for strategic success. We’re actively developing exclusive projects like Slotopia and Bingo to enrich our offerings and cater to diverse player demographics.
Roman Bogoduhov
Undoubtedly, sports betting will stay the top online vertical in Brazil. As the market expands, new technologies and advanced solutions are coming to the country, online sports betting has a chance to become more prominent than offline, thanks to live bets, mobile access, and fast and secure payments which become available as the regulation settles.
Traditionally, the lottery is the second most popular gaming activity. Still, the state has a monopoly here, so the operators and vendors will demand lottery-like games: bingo, scratch games, keno, etc. Live casino games, card games (including poker and blackjack), and new trends like crash games will follow the leaders.
Jack Smith
As we know in most established markets there is a traditional split between sports betting and casino with Brazil unlikely to differ. Brazilians have a huge affinity with Soccer and that is not going to change anytime soon with more operators vying for sponsorship opportunities with its biggest clubs.
The inclusion of iGaming into the bill was hugely important as well as this represents a sizeable piece of the market. The likelihood is that we will likely see this continue to grow through traditional live dealers and crash games which have proven to be popular in the region as well.
At Sportingtech we recognize iGaming’s importance, hence why we are continuing to partner with local games providers to supply fresh new casino content that we feel will identify with the consumer. It remains to be seen how the landscape will change in the future but as always, our teams will continue to research the market and look for new innovative products to satisfy Brazilian players.
Massimiliano Vandelli
We foresee a diverse landscape of gaming verticals that will resonate with Brazilian players, driven by both traditional and innovative content. One area of particular promise lies in non-traditional games, such as crash games, which have demonstrated considerable appeal across Latin American markets. Our EasySwipe™ portfolio, in particular, stands out as a compelling offering for sportsbooks seeking to diversify into casino games. For instance, games like Goal Mine World, which allows players to personalize their gaming experience by selecting colours associated with the Seleção Canarinha (Brazilian national team), are tailored to resonate with local tastes.
Our widget integration within sportsbooks has already yielded remarkable results, fostering player loyalty and facilitating seamless cross-selling between sports and casino content. This underscores the importance of delivering fast and engaging casino experiences that complement sports betting activities.
While sports are expected to drive significant engagement, the initial interest from online operators targeting the Brazilian market indicates a growing demand for high-quality casino content as well. In response, our latest line of video slots, featuring titles like 12 Deadly Spins and Candy Drops, is poised to captivate avid casino enthusiasts seeking immersive gaming experiences.
Henrique De Simoni
Absolutely! With our company’s wealth of experience in the iGaming industry, I’ve been entrusted with spearheading our efforts in LatAm, particularly in Brazil. Understanding the local culture, speaking the language, and possessing a background in the B2C sector allows us to infuse our offering with user-centric experiences for enhanced player engagement.
I firmly believe that cross-selling will be the primary vertical to target. Seamlessly transitioning players from the sportsbook to casino presents a golden opportunity, especially in a country where sports hold significant cultural sway. While crash games have made initial waves, we anticipate slots to take centre stage in the long run. Our successful slot title, Coin Volcano, with its captivating theme, user-friendly gameplay, and vibrant graphics, exemplifies the high-quality gaming experiences we’re aiming to deliver in the market.
What are your overarching expectations for its trajectory? Are there specific milestones, challenges, or growth indicators that you foresee shaping the landscape in the coming years?
Massimiliano Vandelli
Looking ahead, we anticipate various challenges and growth indicators that will shape the trajectory of our operations in Brazil. Regulatory developments, including the implementation of iGaming legislation and associated licensing frameworks, will significantly influence market dynamics and operator engagement. Furthermore, evolving player preferences and market trends, such as the integration of sports and casino content, will present both opportunities and challenges for our growth strategy.
Primarily our aim is to secure significant exposure for our games with leading operators in the market. To achieve this, we are committed to fostering and strengthening our relationships with major partners in Latin America, who are poised to play a pivotal role in the market. We’re exploring opportunities for exclusive partnerships, developing sports-driven content, and creating bespoke games tailored to the requirements of major operators. By prioritizing localization, we aim to enhance player engagement and drive adoption of our offerings across the Brazilian iGaming landscape.
Jack Smith
Given the strong interest by what feels like the majority of the iGaming industry, it’s fair to say that everyone sees the growth potential in Brazil over the coming years. Research suggests that revenues will reach $2bn in 2024 and a projected market volume of $4bn by 2029. If those projections were to be correct, Brazil would solidify itself as one of the largest markets globally.
There aren’t specific milestones we are working towards but the continued increase of internet penetration in Brazil will play a crucial role in the development of the online gambling market. Smartphones are becoming more cost effective and available to everyone, and with the incoming legislation we will see the introduction of native apps to the iOS and Google Play stores. This will add an additional layer of convenience to the consumer.
There is also the retail opportunity, which has been hidden in plain sight for a number of years, so it will be interesting to see whether operators transition into retail to penetrate players who are limited to cash only transactions.
Ihor Zarechnyi
With the market’s upcoming launch, we anticipate a notable surge in activity. However, like any new endeavour, this journey may be accompanied by challenges and will require thoughtful, well-balanced actions from regulatory authorities and market participants.
We maintain a positive outlook based on predictions that Brazil’s online sports betting, casino, and bingo market could soar to nearly $3 billion in revenue by 2027, positioning it among the world’s leading markets.
As we navigate rapid growth, it’s important to acknowledge the potential risks, including market overheating. However, armed with a robust strategy and a line-up of games that culturally connect with Brazilian players, we’re well positioned for success in further solidifying our standing in the LatAm market.
Henrique De Simoni
The average Brazilian spends over nine hours on the internet per day, signalling a profound digital presence ready for exploration. As such, we’re poised to leverage this extensive online engagement by ensuring our high-quality games, coupled with robust gamification elements, provide unparalleled slot experiences.
In anticipation of numerous new entrants and potential mergers and acquisitions in the market, we’re gearing up for increased competition. With over 134 companies vying for licences in Brazil, each capable of operating three platforms, the landscape is primed for expansion, with an estimated 402 regulated betting sites anticipated. Despite the challenges ahead, we’re optimistic that our expertise and ability to resonate with the Brazilian audience will set us apart. The best is indeed yet to come!
Roman Bogoduhov
Now the Brazilian iGaming market is shaping, and once the project is launched and adapted to the local preferences, it’s relatively simple to compete and acquire players. The operators will win with attractive bonuses and promotions, well-thought campaigns, and in particular social media marketing and influencer-based advertising. Brazil is one of the biggest influencer markets in the world, according to the statistics, up to 45% of consumers here trust social media platforms and recommendations. At this stage, I will not be surprised if Instagram and TikTok are literally invaded by sports betting and casino placements.
During this initial bountiful period, operators must keep in mind long-term goals. Given the difficult history of long and painful payouts and the lack of local or at least Portuguese-speaking customer support, these two operational aspects are irreplaceable for building trust and long-term engagement and are currently in the top three reasons for player churn.
Denis Kosinsky
With regulation finally being implemented, we can expect Brazil to become a favorable market for growth and sustainability. Early insights signal toward rapid expansion fuelled by the recent legislation, while its young, tech-savvy population’s strong interest in digital entertainment means it is poised to become one of the biggest markets worldwide. Pivotal to success in the market will be player acquisition and retention strategies that provide a superior user experience. Initiatives such as loyalty systems, player battles and brand customization will be critical in retaining players and staying competitive.
We’re closely monitoring growth indicators such as user engagement metrics, market share expansion, and the adoption of new gaming technologies to adapt our strategies for sustained growth. Furthermore, responsible gaming, at its core, is the most important contributor to making the gambling industry sustainable in the long-term. To play our part in this, NuxGame will be focusing on ethical practices to foster a safe and sustainable gaming environment.
Stemming from complex regulatory frameworks, compliance requirements and heightened competition, encountering challenges in a new market is unavoidable. Through our dedication to innovation, customer satisfaction, and strategic partnerships we can address these obstacles before they arise and ensure a smooth launch into the regulated Brazilian market.
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