Interviews
Roundtable: Spending Smart Not Big in the US
Participants
Michael Pedersen, CCO of Livespins
Tom Galanis, Founder at First Look Games
Allan Petrilli, VP of Sales & Growth at Intelitics
Troy Paul, Co-Founder and CEO at SGG
Summary
This roundtable will discuss the marketing tactics being deployed by operators in the US and in particular, how those with smaller budgets can still drive awareness and build market share. While above-the-line campaigns have their place, affiliates and paid media are just as effective and can drive acquisition at scale but for a more sensible return on investment. It will dig into the upsides that affiliates and paid media offer and what operators need to do to maximise the opportunities they provide. It will also touch on other channels such as social media and streaming and asks if operators are really doing enough when it comes to retention.
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Operators have dropped serious money on marketing and acquisition campaigns to date, but many are now questioning the effectiveness of these and the ROI they are generating. Why do you think they took this approach in the first place?
Michael Pedersen, CCO of Livespins
Operators have spent big to leverage the powerful first mover advantage on the table in states that have legalised online sports betting and casino for the first time. They have also been locked in a fierce battle with their rivals over market share, a battle they have been keen to win. Many will have researched the market beforehand and seen analyst reports that it will be worth billions and so have looked to buy their way to the largest slice of the pie. I think this has been the right approach to take for some as there is a huge advantage to be gained by being among the first brands to go live in a state. This allows the operator to capture the significant early interest in legal sports betting and casino when the market first opens. You just have to look at the numbers coming out of Ohio to see the level of activity that occurs in the first few days and weeks of a market opening.
Of course, this is an expensive game to play and requires very deep pockets indeed. The issue now is that operators have been spending big for quite some time and investors are starting to question when this open chequebook approach will pay off. Many understand that brand building takes time, but they do need to see a path to profitability. This path is looking increasingly bumpy in the context of recent changes to the macro environment (interest rates on the rise, cost of living crisis, etc) and it seems investors are running out of patience. This has seen many operators slash marketing spend as part of wider efforts to hit the point of break-even by the end of the year – a target that I’m sure some will fail to hit.
Tom Galanis, Founder at First Look Games
The trend for massive spend is undoubtedly a result of the historic marketing blitz undertaken by FanDuel and DraftKings and the hundreds of millions of dollars they invested in building their brands in the daily fantasy sports space. They’ve been able to tap into this brand equity as and when states have legalised online sports betting and casino, taking the lead in most markets. Other brands entering the fray have had to spend at similar levels to play catch-up and stake their claim to the lion’s share in each state. I do think there’s been an over-reliance on above-the-line (ATL) marketing and the use of brand ambassadors and sponsorship deals. These are incredibly expensive marketing channels that are often more effective at long-term brand building than they are at delivering acquisition at pace. It’s also worth noting the “Gold Rush” mentality that a lot of operators seem to have adopted – they believed there was a limited window to achieve a critical mass of market share so have spent big in order to achieve it.
Allan Petrilli, VP of Sales & Growth at Intelitics
While many believe operators have embarked on reckless spending, to me there is some method to the madness. Top-tier brands consider this spend under brand-building and with new markets opening up so quickly, they felt they were entering into a fierce battle with their rivals to capture the largest share of wallet in each state. This coincided with public and private investment being relatively cheap, meaning operators didn’t have to be quite so mindful of the return they were achieving. There was also an assumption that iGaming/online casino regulation would be quickly rolled out across additional states, and this in turn would help to drive revenues. Of course, the cost of investment and borrowing money has skyrocketed and online casino regulation has not come about at the pace or the scale expected. This has caught operators off-guard, and many are now slashing marketing budgets in order to achieve profitability.
Troy Paul, Co-Founder and CEO at SGG
The passing of PASPA (The Professional and Amateur Sports Protection Act) really heralded the start of “the great sports betting race” – and back then, the general consensus was that the first two or three operators would easily “win” and dominate sports betting for all time. Initially, FanDuel, DraftKings and BetMGM outspent the competition and took the first heat, but the race is far from over. Now we’re seeing challengers such as Fanatics and BETR competing in a new heat where the emphasis has shifted from how much a sportsbook spends to how effective their spend proves to be.
Is there an opportunity for operators to spend smart and still drive brand awareness and claim a significant share of the market in each state they target?
Michael Pedersen, CCO of Livespins
Operators are starting to be more conservative. In New York, the likes of WynnBet have put the brakes on entering the market over concerns about the high tax rate impacting its ability to be profitable in the state. Not all opportunities are good opportunities and operators must avoid jumping on the bandwagon just because a state is hailed as a game-changer by analysts and insiders. Aggressive ambition is good, but operators must not walk into markets blind.
In the states that operators do identify as being viable, spending big is not the only way to claim market share and push for customer acquisition at scale. A product such as Livespins can be a major driver of both acquisition and retention. While the core Livespins experience sits within the casino lobby and provides players with an entirely new wagering experience that sees them bet behind their favourite streamers, taking retention to the next level, our soon-to-launch ambassador product has been designed to super-charge customer acquisition.
It allows operators to maximise the value of the brand ambassador/celebrity/influencer partnerships they have by deploying them within the Livespins experience. This means that players can join their favourite celebrities during their streams and play with them via our innovative bet behind system. Not only that, but they can chat with them and other players throughout the broadcast, while also dropping reactions and emojis. This changes brand ambassador marketing from passive to active and allows operators to monetise directly and instantly through the bet behinds being placed.
Tom Galanis, Founder at First Look Games
Absolutely. There’s a huge opportunity for operators to generate significant new player sign-ups through performance marketing and affiliates. Operators have seemed hesitant to go all-in with affiliates to date, but as they are forced to cut marketing spend in their pursuit of profitability, I think we’ll see more turn to performance marketers to support their customer acquisition efforts. That said, given the traction that the power players such as DraftKings, FanDuel and BetMGM already have in most states, affiliate marketing alone will not be enough to push another brand into this top tier – significant ATL marketing will still be required for those looking to take the crown from the early market leaders.
Allan Petrilli, VP of Sales & Growth at Intelitics
With this downward pressure on spend and the increasing importance being placed on efficiency and ROI, now is the time for operators to be more data-driven in their marketing activity. With many brands slamming the brakes on their above-the-line campaigns, there is a window of tremendous opportunity for savvy operators to explore and take advantage of. Affiliates and paid media have been under-utilised in the US market to date but absolutely can deliver the results operators desire and generate the ROI they are seeking. Of course, with most operators pulling back on top-line marketing spend and looking for alternative acquisition tactics and channels, competition across affiliates and paid media will heat up and perhaps reach the same scorching intensity that we have seen with above-the-line marketing.
To get ahead of the competition, operators should focus on localised marketing for the purpose of brand building. The top five operators will always have big budgets and will take a national approach to most of their acquisition activity, but this opens up an entire area of local marketing for smaller brands to explore and carve out their own significant niche. This is why it’s important for brands to be self-aware and for this to be reflected in their marketing strategies and activity.
Troy Paul, Co-Founder and CEO at SGG
Yes, but in order to do so there are certain key propositions they must deliver. First and foremost, their product has to be top-notch and they must be able to offer a state-of-the-art gambling portal. Secondly, as the market has become more saturated, differentiation and offering a unique betting proposition has become increasingly important. BETR’s micro in-game betting feature is a good example of this and one that definitely sets them apart from the competition. Lastly, if you’re going to take on the big boys, you’re going to need to have your own unique advertising channel. As they can’t be beat on TV or Ad Word spending, you have to be smart and find other ways to reach bettors.
What does smart marketing look like?
Michael Pedersen, CCO of Livespins
A clear strategy should be the foundation of any marketing activity. It’s vital for operators to know their audiences and where their attention can be found. They must also identify their own strengths and weaknesses, playing up to the former and working with specialists to close any gaps with the latter. Knowing how deep the company’s pockets really are, and the degree of appetite for significant, long-term investment in marketing, is key as it sets the budgets that marketing teams have to play with. Operators and their marketing teams must then use their expertise and experience to come up with a plan that resonates with their target audience, conveys their brand values and USPs, and ultimately drives players to their books and casinos within the budgets they have been allocated. And platforms such as Livespins can deliver incredible results without operators blowing billions of dollars on TV ad campaigns.
Tom Galanis, Founder at First Look Games
It really depends on the ultimate ambition of the brand. If the aim is to scale fast and gain significant market share without any consideration being given to the bottom line, then DraftKings, FanDuel and BetMGM have done a great job. Whether this approach is sustainable remains to be seen, and you also have to factor in the levels of retention these brands are achieving to really determine the success of their tactics. Smaller operators that have looked to emulate these titans have suffered massively and this has ultimately been to the benefit of the big three. That said, it’s encouraging to see some new market entrants such as PlayStar taking a different approach – they are doing things their own way with performance marketing as a key channel for customer acquisition.
The US is a very different market to the UK, but operators in the former should look to the latter to see what does and doesn’t work. New York shows that operators are not learning fast enough – when margins are squeezed (in this case because of the high tax rate) agility with both product and marketing is crucial to ensuring market viability. When it comes down to it, smart marketing is a strategy that is both sustainable for the long term and balances achieving a critical mass of customers with a clear pathway to profitability.
Allan Petrilli, VP of Sales & Growth at Intelitics
An ambitious but achievable plan is the foundation of all smart marketing activity. Plans need to cover each channel, and operators need to ensure their marketing teams have access to the technology they need to track, monitor and optimise campaigns. They must also be open to and ready to pounce on any opportunities that open up. Data should be used to drive all decisions, from pulling underperforming campaigns to ramping up the spend being put behind those that are delivering solid results. Data also allows for campaigns to be tweaked in real-time, helping operators to further improve the ROI they generate. It’s also important for operators not to copy the tactics being deployed by their rivals – this is a market where being brave, bold and swimming against the tide yields the greatest results.
Troy Paul, Co-Founder and CEO at SGG
There are many brands marketing effectively in the US, and pretty much all of them have their own unique set-up. Barstool, for example, is a great example of a brand that has successfully harnessed the power of social media. They have a community of loyal followers on multiple channels who relate to their brand, so they’re able to market to an audience of 50 million followers every day. This is a cost-effective solution for attracting younger sports bettors, as this audience is often found dual-screening on their cell phone while watching sports – meaning it’s the easiest way to reach them.
FanDuel and DraftKings, meanwhile, have both created a dedicated podcast following and keep themselves in front of this audience on a weekly basis. This is, of course, something that takes a while to establish, so it’s hard for new competitors to replicate and gives them a distinct edge in the market.
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Have operators yet to explore the full potential of affiliates and paid media? If not, why do you think this is the case?
Tom Galanis, Founder at First Look Games
No, they haven’t. I think this is for a couple of reasons. Some operators hold the belief that brands in more established markets are over-reliant on and over-exposed through affiliates. Others seem to think the channel creates a more even playing field for smaller brands to gain market share and that affiliates do not offer the scale and speed of scale they require. There also seems to be a high level of mistrust and misunderstanding when it comes to affiliates.
Allan Petrilli, VP of Sales & Growth at Intelitics
This is a bit of a loaded question. There are definitely some that are focusing more on affiliates and paid media, but broadly speaking they have not been fully explored to date. This is likely because these channels require experience, expertise and proper set-up in order to be successful. But given the scrutiny that current marketing activity is coming under, brands are increasingly leaning into both as they look to find efficiencies while scaling traffic. As these tend to be more supportive channels, I expect to see the percentage of overall marketing spend shift in a meaningful way towards affiliates and paid media over the next 12 months.
Troy Paul, Co-Founder and CEO at SGG
Social media remains a largely untapped channel and is – in our opinion – the future of attracting the next generation of sports and casino players. That said, in the past some of the more old-school operators haven’t been particularly quick to embrace it. The reason for this might be that they didn’t possess the skills or know-how to communicate with this customer demographic effectively. Affiliates can help in this respect as they often have niche audiences that operators aren’t able to reach by themselves, such as social media groups or college sports fans. This can help them connect with customers outside of their traditional target audience and greatly increase their acquisition potential.
What upsides do affiliates offer? How can operators maximise the opportunity here?
Tom Galanis, Founder at First Look Games
A solid affiliate program provides the foundation for operators to grow their player base sustainably and cost-effectively. Affiliates essentially act as brand and product advocates, promoting those brands that deliver the best player experience and holding those that don’t to account. This ultimately helps to raise standards while driving significant, quality traffic to those at the top of their game. Most affiliates are also willing to work with operators to help them achieve their goals – those that are properly incentivised will be willing to work to lower CPAs which are incredibly high in the US compared to more mature markets such as the UK.
Allan Petrilli, VP of Sales & Growth at Intelitics
Most affiliates are specialists when it comes to digital marketing and user acquisition. They have sizable audiences or know how to acquire them, that are primed and ready to sign up to and play at online sportsbooks and casinos, so long as those brands offer what they are looking for. Affiliates require little to no set-up costs with operators paying for what they get in terms of depositing customers. They can also provide operators with highly valuable feedback on their conversion flows, products and more – this feedback is incredibly hard to come by and can help operators improve the player experience offered, which in turn boosts acquisition but also retention.
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And the same for paid media – what is the potential here and how can operators unlock it?
Tom Galanis, Founder at First Look Games
Affiliates are currently dominating the paid media space in the US market because, compared to other markets, there is a much higher margin to be made. But this means there is room for operators to get in on the action and use paid media to directly acquire customers and achieve a strong ROI. For example, paid media is the ideal vehicle to flex up acquisition during the limited window of the NFL season.
Allan Petrilli, VP of Sales & Growth at Intelitics
Paid media simply refers to placing ads across a wide range of media platforms such as Meta, Google, publisher networks and mobile networks. Campaigns can be highly targeted across location, age, interests and more to ensure they hit the right players. The key to unlocking the full potential of both paid media and affiliates is using a mar-tech platform that provides access to data in real-time. This allows operators to tweak campaigns to improve performance and to ramp up and scale back spending as and when required.
What other, cost-effective channels can operators use for brand building and marketing? What role can streaming play here? What about social media?
Michael Pedersen, CCO of Livespins
Streaming has proved to be a highly effective marketing and acquisition platform for online casino and sportsbook brands, but operators remain cautious, especially following Twitch’s decision last year to ban certain operators from its platform. Livespins allows operators to overcome these concerns – because it sits within the casino lobby, players are afforded the same responsible gambling and safe gaming tools when playing traditional casino and sports, as required under an operator’s respective local licences. This means they can tap into the huge – and growing – potential that streaming offers both in terms of acquisition and retention while being confident that they are fully compliant at all times.
Tom Galinis, Founder at First Look Games
I’m coming around to the idea that offline activation is an underutilised channel. We’re seeing affiliates like Betting Hero and Affiliated Sports Fans gaining traction here, and operators should look to follow their lead. In terms of social media, paid social is the play for sure and in terms of building up an audience, I’d be looking to focus efforts on TikTok. The price of content generation is extortionate in the US, so I fully expect AI-generated content to come to the fore as the technology becomes more sophisticated – we’re already seeing leading affiliates and some operators using it.
Allan Petrilli, VP of Sales & Growth at Intelitics
In terms of live acquisition, we will see more out-of-home campaigns and activity. It is being done by some brands at the moment, but there is so much more potential to unlock here and especially at the local level.
Troy Paul, Co-Founder and CEO at SGG
According to the most recent statistics, an estimated 75% of marketers will use Influencer Marketing in 2023, with this representing a $17.4 billion industry. Most operators are way behind in terms of tapping into this lucrative space, which is arguably the most cost-effective way of advertising to the younger generation of sports fan. In particular, micro-influencers are more engaged with their sports followers and can be utilized at a fraction of the cost of a “Tom Brady” or similar superstar influencer.
Retention is just as important as acquisition, but are operators paying enough attention to this? If not, why is that the case?
Michael Pedersen, CCO of Livespins
I disagree – retention is even more important than acquisition. Onboarding new players is just the first hurdle that operators must clear – then the real hard work begins. That’s why before spending a single dollar on acquisition, they must spend $10 on ways to retain those players. If operators are not confident about retaining players, they should not spend anything on marketing to them. If they are confident, then they can launch acquisition campaigns and scale up those that are working well. I really can’t stress the importance of CRM and ensuring that players continue to wager with the brand once they have signed up for the first time. This is especially important in the US where the cost of acquisition is sky-high right now.
Tom Galinis, Founder at First Look Games
No, they’re not. I’d say this is partly down to a lack of product capability to really be able to deliver organic retention, but I also think there’s a firmly held belief that the activation of another local league or team sponsorship will do more than sophisticated CRM systems ever could. But operators are wrong to believe this.
Allan Petrilli, VP of Sales & Growth at Intelitics
I think they are starting to, but the future here is around personalisation. With advances in technology, the brands that use this to offer a truly bespoke player experience will be the ones that ultimately win. What does this look like? If I bet on the New York Jets each weekend, I should be able to log in to my sportsbook app and have a prefilled bet sheet each week ready and waiting to go. This is just one example, and the sky really is the limit here.
Troy Paul, Co-Founder and CEO at SGG
Having a great gambling platform is obviously a major prerequisite for successful retention, as is finding a way to engage with your players on a daily or weekly basis, such as a podcast or social media channel. In order to keep your product front and center in customers’ minds, you have to go where their eyes go as they’re watching games – and these days, that’s increasingly their cell phone screens.
How can operators turbo-charge their retention efforts and activity?
Michael Pedersen, CCO of Livespins
It comes down to delivering a seamless player experience beyond that being offered by rival brands. This covers all areas of the book or casino, from the welcome offer to onboarding, KYC, payments and customer support. Of course, the gaming experience offered is crucial and that’s why products such as Livespins are a must for operators. The Livespins experience offers an entirely new way for players to experience online casino, while being interactive and social. Session times are off the charts, and this in turn is helping operators mitigate churn and keep their players playing for longer. It also acts as a huge point of difference, adding more kudos to its ability to help keep their players coming back for more.
Tom Galinis, Founder at First Look Games
Simple. Build the best product which means not relying on the relatively poor player management systems that currently underpin the US market. This is where I feel bet365 can gain market share. Yes, they’ll have to invest in ATL, but I fully expect them to get their product successfully localised and become the best product on the market. This will ultimately act as the foundation of retention at scale.
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.
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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.
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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.
Since the dawn of the internet, social media platforms have been a great way for people to stay in touch. And as mobile technologies have continued to advance, we’re now more connected than ever. In fact, you’d be hard pressed to find someone who doesn’t have a social media presence nowadays.
From Facebook and Instagram to LinkedIn and even TikTok, social media apps have become a staple of our daily lives. So, it’s no surprise that gambling brands are looking towards such platforms as a means of tapping into new audiences.
We spoke to Allan Petrilli, Managing Director of Acquire.Bet, and Troy Paul, CEO and Co-Founder of SGG Media, to ask whether social media is going to become the next battleground for audience engagement.
BetMGM recently made the news after partnering with the social media platform X, formerly known as Twitter, in a deal which has made the operator the first online sportsbook embedded within a major social media platform. In your view, what could this agreement mean for the industry?
Troy Paul: It is a very smart play for BetMGM. If operators want to reach the new generation of gamblers, aged 21 to 40, they MUST establish a solid presence on social media.
Ultimately, social media is where this generation gets their news, sports updates, scores and share content with their groups of friends. Ignoring the power of social media would be a big mistake.
Could partnerships with social media platforms be the way forward for gambling operators to reach new demographics of players? If so, what impact could such agreements have on player engagement, and subsequently, player acquisition costs?
Allan Petrilli: Deals such as the one signed between BetMGM and X, or DraftKings and Apple Sports, are examples of sports betting brands getting more creative in how they plan to boost brand awareness and consumer trust. They are deviating away from the more traditional advertising models such as TV and other forms of above the line media.
Focusing specifically on the BetMGM agreement, X is a vibrant, passionate community that is heavily engrained in sports. It really seems like a great fit for what BetMGM is trying to do from a brand perspective.
X is also a hotpot of bettors, and this will ensure they are more heavily engaged with the brand. When it comes to lower customer acquisition costs (CAC), that is yet to be determined, as they haven’t released specifics of the deal. As it always goes, it depends on what they paid…
Troy Paul: Absolutely! Partnerships between social media platforms and gambling operators will be key for those who want to communicate with the more digital conscious bettors. If you then compare this to advertising verticals such as television and radio, social media advertising is also much more cost-effective.
Affiliates can be an effective way to engage with bettors across social media platforms. How can gambling companies better use affiliates to build a social media following?
Allan Petrilli: Micro-influencers are becoming more popular than ever as a significant driver of affiliate traffic, and this is due to their strong follower engagement and brand loyalty.
Many affiliate companies have SIGNIFICANT social presence and have already established their own communities. These types of partnerships can effectively give brands access to a whole new demographic of customers in a more organic fashion.
Operators needs to continue to offer their social partners a more organic way to drive traffic, with shareable bet slips, better deep-linking and more thoughtful partnerships. As these partnerships become more commonplace, operators, affiliates and social media partners will need to collaborate much more closely to find the most effective strategies to build new communities.
As more operators turn their attention towards social media as a marketing tool, how can they best stand out from the crowd? Could we soon see more brands getting creative with their campaigns?
Troy Paul: Social media should be used to create a COMMUNITY of sports fans, and sports gamblers. You cannot create a community by sending only ads. You must create fun, readable, informative CONTENT and occasionally drop in an ad or sign-up link. Content is King in this regard.
As the sports gambling world continues to mature, the smarter, savvier operators will continue to use social media as a means of retaining their customers and creating a social media-led community of loyal customers that not only enjoy their content but also continue to bet via their brand.
Allan Petrilli: Standing out from the crowd isn’t going to be an easy task. You really need to establish your brand identity. The real question is: who is going to be the Paddy Power of the US market, right?
In the US, I think that so far, we have seen quite a buttoned-up approach to social media. I do expect that to change, but I think that change will be quite slow at first. This is where micro-influencers could play a major role, they could really offer a big win potential for sportsbooks and casinos.
Just from what I have seen, I think that many brands can take a much more localised approach on social media. The power for targeting is there, the time is not to have creative, offers, etc that match the local bettor to better engaged, convert and retain them.
With that in mind, what role can multimedia assets, such as video and audio, play in driving brand recognition?
Allan Petrilli: Creative content, along with more engaging offers, are the lifeline of any campaign or branding exercise. Brands need a strong mix of branded video, user-generated content, live and pre-game content, and cross-platform retargeting strategies to get the most out of what they do. It’s all about striking that balance and delivering content that the end-customer finds interesting.
Troy Paul: Video-led content is super important if you want to drive brand recognition. The savvier operators will use platforms such as Instagram, YouTube, Twitch, TikTok and other video platforms to create those communities and establish a solid following. Millennials and Gen-Z have been shown to enjoy this quicker, more engaging form of content so it’s worth tapping into the world of video content.
When it comes to promoting odds and betting statistics on social media, how can the industry as a whole ensure that player protection remains at the forefront of any social media activity?
Allan Petrilli: The first thing that sportsbooks and casinos need to do is look at how they are targeting their customers and how they are informing their bettors about exclusion lists. The power is there, it just needs to be used properly.
More educational content is also a very important factor when looking to ensure that responsible gambling remains at the forefront of your social strategy. Throwing around $5000 sign up bonuses without ensuring players understand what they are getting into is a potential issue. That doesn’t always need to be in the ad, but brand should at least be introducing better landing pages and terms for players to be aware.
Mexican bettors demand localization on a different scale. An American approach to sports betting means they differ from other LatAm markets that have moved to decimal or fractional odds. As the population increasingly embraces a mobile-first approach, Altenar’s Sales Manager, Diego Salas, explores why the provider is best placed to meet the unique needs of Mexican operators in the flourishing market.
What is your view of the market at the moment and what makes it so promising?
Over the past three years, Mexican operators have experienced a significant migration from predominantly land-based, brick and mortar operations to an online-focused business model. As a result, more than 70% of sports betting revenue now comes from online customers, with internet and smartphone adoption becoming more widespread across LatAm’s second largest population. The increase in mobile penetration follows the emergence of a younger, more tech-savvy demographic with a median age of 30. They are engaging in sports betting in a more social way.
In keeping with this shift online, we entered 2024 with the release of our white-label mobile app which can be customized and places the sportsbook at its core. Approved across Apple Store and Google Play, it offers accelerated time to market, robust security and options for features such as Early Payout, Bet Builder and Player Specials. The mobile and online channels appeal to a new generation of bettors that require accessible, easy to follow sportsbook products at their fingertips. The app promises an ever-increasing number of sports and competitions with a network of official data partners delivering both quality and speed of data.
How does Mexico differ from its neighbouring markets?
Mexico is a distinct market compared to other Latin American countries and stands out due to its diverse sports culture. It is well known that soccer is the most popular sport in LatAm and at least 90% of bets still come from matches. However, in Mexico, bettors’ tastes are more diverse. Football sits among basketball, baseball, and the NFL as highly popular sports.
Unlike some of its neighbours, Mexico uses an American approach to odds, instead of the European decimal and fractional odds format. Altenar anticipated this difference by offering a flexible, localized platform to cater to specific preferences of Mexican players. Its user interface for Mexican players offers an American odds format to demonstrate provide intuitive navigation.
What will 2024 look like for Altenar in Mexico?
There can be no doubt that LatAm is a major topic of discussion in the industry. The gates are set to swing open to Brazil later in the year and Mexico itself is awaiting some regulatory updates following the legalization of online betting in 2014. As a result, Altenar acknowledges the need for boots on the ground in the continent.
We have just opened a Uruguay office to ensure we can best serve our operator partners across LatAm. We know it is important to them to access people working in the same time zone, who are integrated in their communities. The office will oversee operational aspects and instil confidence in our partners that they will have a team that is more easily accessible than other competitors.
In March and April, we will be at the IV International Gaming Convention in Mexico (12 – 14 March), SAGSE Latam in Argentina (20 – 21 March) and GAT Expo in Colombia (9 – 11 April). Our priorities at these events will be fostering our partnerships in the market and ensuring we are attuned to the regulatory developments across each country. Brazil and Chile are in the process of developing regulations and we are watching those closely, adapting accordingly. We will also be showcasing our flexible platform and features at these events, including our turnkey solution, SSBT and new tools such as Betting Insights, Bet Mentor and Bet Boost. Events are an invaluable way for us to refine our strategies moving forward and we look forward to meeting people over the next month.
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