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Where does the Sport of Kings fit into the Brazilian market?
With a regulated Brazil now in sight, Richard Duncan, Head of Business Development at racing odds and data provider PA Betting Services, assesses the potential for the sport to become a key product in this emerging market
With the last few months having seen Brazil’s sports betting bill clear all the hurdles needed to finally be signed into law, many in the sports betting world have understandably taken a keen interest in the possibilities offered by South America’s largest country.
The home of footballing greats Pelé and Ronaldo and boasting more World Cup titles than any other country, Brazil’s passion for and the resulting potential of football betting is clear. There are a number of parallels to be drawn between a market such as the UK and Brazil when it comes to football. For one thing, the similar level of devotion among the fan base looks set to ensure that football will easily remain the biggest betting turnover generator in Brazil, as it is in the UK.
What’s less clear is how likely racing is to come anywhere near the second place it holds in the UK market, where it accounted for 36% of remote betting turnover in the last set of official Gambling Commission statistics. However, there are a number of comparisons that can be made between the UK and Brazil when it comes to racing. For example, there’s a hardcore fraternity of racing fans and many more casual racegoers, those who are likely to view a day at the races as much in terms of the experience as the opportunity to have a flutter. Not to mention that Brazil boasts the third-largest horse population globally. The thoroughbred industry has been growing steadily since the 1990s, with notable group one winners such as Siphon, Sandpit and, more recently, Bal a Bali elevating the breed’s prominence.
But there’s a huge difference in the local availability of racing. While Brazil’s enormous size makes it the fifth largest country in the world and its population of more than 215 million makes it the seventh most populated, it has just four racetracks, albeit these are well-attended on race days. The UK, ranked 80th by land area and 21st by population, meanwhile, is home to 59 racecourses.
This disparity goes some way to explaining why football is taking the lion’s share of sports betting turnover in Brazil despite currently being unregulated, while racing takes a fraction of this even though it’s been legal for many years.
Online operators could be doing more to cash in on local racing than they currently are. The key to making the most of the Brazilian opportunity is educating the local population on the benefits of betting opportunities that the sheer volume of international races affords and cross-selling this to keen sports bettors.
Filling the gaps
Because while football is unlikely to lose its crown as the most popular sport among Brazilian bettors, the problem with football, NFL, basketball, MMA, golf, tennis and everything else, is that there are so many gaps in the schedule. And once the significant licence fees outlined in the new law have been paid, both local and foreign operators are likely going to need to optimise their product with as little downtime as possible in order to justify their investment.
Racing has the edge over all other sports because on a global basis there exists a full calendar where there is always something to bet on.
In the UK and Ireland we’ve already seen this approach used to great effect with the relatively recent introductions of North American, French, South African, Australian and Asian racing for domestic audiences. This secondary content does well as it lands in either prime leisure hours or is filler at weekends or for poor weather conditions. The increasing globalisation of racing was, in fact, one of the key reasons for our acquisition of Asian racing data provider iRace Media in the second half of last year.
In this respect, foreign operators, some of which have established a foothold in Brazil prior to a regulatory regime and are savvy with this approach used in established markets, may have an edge over others, simply because they’re experienced with the product.
Brazil is likely to be the same as any other fledgling market in the sense that if a company has just started offering a legal gambling product, they are likely going to have greater comfort in offering products to bet on that they are familiar with.
Mitigating the risk
In conversations our team has had with operators in emerging markets such as Brazil, Latam and Africa, the racing knowledge gap is an issue that’s come up repeatedly. They could easily integrate with a data provider such as ourselves from a technical perspective, but they may not fully understand the data they are looking at and some worry this leaves them overexposed.
There are a number of things that make racing more challenging than other sports to trade. For a start, the vernacular used in racing is not something that everyone understands if they’ve not been exposed to it before. In addition, a lot of operators fear racing because while they believe it can make them good money, they know there are people out there, professional punters and big racing syndicates, that know more about racing than their own traders.
This view is not unique to Brazil or even new markets, it’s something we also hear in our core markets and it possibly goes some way to explaining why new operators sometimes take every sport on offer before they get to racing. But inevitably, most take racing at some point because the volume on offer is too great to ignore. However, one recent shift worth mentioning is that more operators new to racing are opting for a platform partner or pricing partner to avoid being exposed to risks they aren’t comfortable with.
This is something that may be even more attractive to operators in emerging markets like Brazil given their lack of experience with global fixed odds racing to date. One thing that may work in their favour is that the country’s bettors would also appear to lack the maturity shown in established markets when it comes to the type of bets they are placing.
For instance, virtually all of the bets taken on football in Brazil are multis, which are bad for punters but which operators love as they are high margin and low risk. A diverse racing portfolio similarly has the potential to deliver high margins for operators and keep players engaged year-round, meaning the product could be just as successful in Brazil as it is in many more established markets.
Richard Duncan is Head of Business Development at PA Betting Services. He has been with parent company PA Media Group since 2002, with the bulk of his career having been spent working in its racing team.
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NOVOMATIC Americas and CAGE Puerto Rico II Enter into Exclusive Strategic Partnership for Puerto Rico Street Market
NOVOMATIC Americas Puerto Rico LLC (NOVOMATIC Americas), a subsidiary of the international gaming technology group NOVOMATIC, and CAGE Puerto Rico II Inc (CAGE) have entered into a long-term, exclusive strategic partnership for the street gaming market in Puerto Rico, building on their successful multi-year collaboration across various Caribbean markets.
Under the terms of a newly concluded Master Sales Agreement, NOVOMATIC Americas will distribute thousands of FUNMASTER 2.27 cabinets to CAGE Puerto Rico. The agreement reflects both parties’ shared commitment to market development, operational excellence, and long-term value creation in Puerto Rico’s regulated gaming sector and is still subject to CAGE receiving the renewal of its gaming license in Puerto Rico.
Each gaming terminal will include access to a curated portfolio of NOVOMATIC gaming content, which is tailored to meet the preferences of the local player base. This ensures that CAGE and its operating partners benefit from a dynamic and adaptable content offering that is designed to maximize entertainment value and operational results.
Jakob Rothwangl, Managing Director NOVOMATIC Americas, said: “This agreement underscores the strategic alignment between Caribbean CAGE and NOVOMATIC Americas in one of the region’s most dynamic and promising markets. It is a testament to the strength of our long-standing partnership and to the trust that CAGE places in our products, performance, and vision.”
Chairman of CAGE Puerto Rico II, Robert B. Washington, said: “We are proud to deepen our strategic partnership with NOVOMATIC Americas as we continue to expand our footprint in the Caribbean markets. Their technology, product quality, performance and long-term vision are exactly what we need to drive sustainable growth and deliver best-in-class gaming entertainment to our customers and partners throughout Puerto Rico.”
CT Interactive’s premium gaming content is now live with Playcet, marking the renowned iGaming provider’s official entry into the Argentine market. This strategic partnership underscores the company’s commitment to international expansion and reinforces the growing presence in Latin America. Based in Córdoba, Argentina, Playcet now offers its players a carefully curated selection of 63 of CT Interactive’s most popular slot titles. Among these are users’ favorites such as 20 Star Party, 40 Fruitata Wins, Banana Merge, Celestial Dragon, Chili Fruits, and many more – games known for their captivating gameplay and top-tier design, which have consistently performed well across various global markets.
“This partnership holds significant strategic value for us. It not only reflects our deep commitment to the region but also propels our vision for sustainable growth and long-term market leadership. We are confident that by combining our strengths, we will unlock new opportunities and set fresh benchmarks for success together,” said Martin Ivanov, Chief Operating Officer at CT Interactive.
Following the successful certification of CT Interactive’s game portfolio for the Argentine market, local players now have access to a diverse and immersive gaming experience tailored to their preferences. The collaboration with Playcet ensures the delivery of high-quality entertainment that meets the highest standards of performance, engagement, and user satisfaction.
Horacio Sans, Playcet’s Operations Manager, said: “We are very pleased to add CT Interactive’s portfolio to our platform. This partnership represents an important step in continuing to strengthen our offering and providing our users with an even more complete and high-quality gaming experience.”
The alliance with CT Interactive reinforces Playcet’s commitment to innovation and quality, consolidating its position as one of the leading online gaming platforms in the Province of Córdoba.
“At CT Interactive, we remain committed to forming strategic alliances and creating localized content that enhances the gaming experience globally. Our expansion into Argentina represents another key step in our mission to deliver cutting-edge gaming solutions to players across the globe,” added Martin Ivanov.
When the US Supreme Court struck down the Professional and Amateur Sports Protection Act of 1992 (PASPA) in 2018, it opened the floodgates to sports betting in the US. From the middle of 2018 to now, states with some form of legal sports betting went from the four states ‘grandfathered’ by PASPA to 39 states and Washington, D.C. allowing betting. That’s 36 jurisdictions legalizing in eight years.
Soon after the annulment of PAAPA, market activity exploded with several states legalizing and launching every year thereafter. Each state had millions of new customers that operators wanted to reach quickly, and unique regulatory constraints around marketing and betting. That’s where affiliate marketing stepped in, providing local expertise to help these operators rapidly establish a foothold with customers.
That gold rush has now ended. While states with significant populations like Texas and California remain without legal sports betting, the majority of players in the US have access to it. Several states won’t be legalizing sports betting every year like in the past.
If operators no longer rely on affiliates to help them conquer several new markets every year, what roles do these large, third-party marketing companies have to play moving forward? As the market matures, we’re seeing that affiliate marketing has a crucial role to play in the current marketing climate.
What the Mature Market Looks Like
Aside from the lurking possibility of states with huge populations like California and Texas legalizing sports betting, the market is broadly set. Many states that haven’t introduced betting are unlikely to change that position due to the political climate, like in Utah and Alaska.
Sports betting has never been more popular, with total GGR for sports betting hitting $13.71 billion in 2024, according to the American Gaming Association. That was a 25.4% increase year-on-year. However, sports betting has also never been more competitive. Most US states have intense competition between operators competing in saturated ecosystems.
There’s evidence this is impacting affiliate companies, with Catena Media generating 35% less from US operations in 2024 compared to 2023. Another significant operator in US affiliate marketing, Better Collective, saw US revenues drop from $113 million in FY2023 to $112 million in FY2024.
However, this doesn’t spell the end of affiliate marketing. Without the potential to expand into new states, operators are looking to strengthen and grow market share in the states where sportsbooks are already operational and companies have already conducted marketing campaigns with affiliates.
Companies that have quickly grasped this new approach have shown positive signs. Gambling.com Group reported record Q4 revenues in 2024 and finished with full-year revenue of $127.1 million, a 17% rise from the year prior.
It’s made affiliates effectively take a u-turn to recover all the ground they covered so rapidly with the expansion of the market. For example, the first online sportsbooks launched in Michigan in January 2021, so there was a flurry of marketing activity in the state before that attention moved to other states that launched in the same year, like Arizona in September. Now, affiliates are returning to states like Michigan with new approaches.
Trust and Authority and Blitz Tactics
What do these new marketing approaches entail? Rather than acquiring as many users as possible in a short time, affiliates are now focused on increasing brand loyalty. Affiliates want to increase customer lifetime value (CLV), and are more aware of this metric than the base number of how many new users are added.
That’s led to more personalized advertising campaigns with features like exclusive offers, user engagement tools, and more to keep the focus on retaining players rather than adding more and more customers. Brands are looking to build authority and trust with customers.
Adding a few customers with high CLV is priceless for operators compared to hundreds of customers who will drop off quickly. Affiliate marketing supports these platforms with tailored campaigns using specific state knowledge and personalized customer retention measures.
More Sophisticated Customers
When sports betting first started spreading across the US, most people probably confused parlay bets with the French word parley used in popular movie franchises like Pirates of the Caribbean. That was the average American bettor’s education level on the topic.
So, early affiliate marketing efforts focused on introducing common sports betting terminology to customers while explaining the benefits of sports betting brands. Guides would explain how to sign up with a sportsbook and the difference between a moneyline and a point spread. That easy access to sports betting information made it more straightforward for a broader audience to get involved.
It’s a different market eight years on. Most bettors are far more educated than before and don’t need to be babyfed the basics. If an operator wants to appeal to bettors, it must do more than just offer betting.
That’s why affiliate marketing has shifted to a more detailed and data-driven approach. Rather than explaining how American odds work, affiliate marketing campaigns now compare the value of odds between operators and highlight the best value.
Unique betting features are more important to marketing campaigns as these can help attract bettors with accounts at other sportsbooks to sign up with a new platform.
This is where affiliate marketing can help operators in mature markets, as these campaigns can highlight those strengths against other brands and make each platform’s unique proposition clear to savvy bettors.
Broadening Audience Demographics
Considering odds regularly appear on major league broadcasts and are discussed by commentary staff for games, it’s clear that betting is becoming increasingly mainstream. As sportsbooks look to consolidate and compete in competitive markets, reaching new demographics is a valuable marketing tool.
While bettors in the US are more educated now, operators are looking to attract more than just players willing to learn all the jargon. New marketing strategies must make betting relatable and appealing to various ages and demographics.
The campaign to capture the attention of bettors in their 20s should look very different from one for older players, and the best affiliate marketers are helping operators tailor these campaigns to hit specific demographics.
Affiliates’ Role as Strategic Partners to Operators
The relationship between affiliates and operators has shifted as the operators need affiliate marketing companies to deliver different marketing services. Many operators see affiliates as strategic partners rather than just sources of traffic.
These new data-driven dynamics will let affiliates play a wider role in operators’ marketing schemes, providing data integration like live stats, API odds feeds, and more. Additionally, affiliates use years of knowledge and expertise to help these platforms run campaigns through different media sources, including mobile.
Affiliates also play a helpful role in compliance and responsible gambling. Each state has its own requirements, and while no new markets are opening, states that already permit betting can shift rules around what’s available. Scrutiny from regulators is also increasing. Therefore, affiliate marketing can provide operators with tailored campaigns that take a state-by-state approach.
Conclusion
Affiliate priorities have shifted, moving into 2025 and beyond. The gold rush is over, and the market is consolidating. Affiliates need to expand their services to keep up with the evolving demands of sports betting operators, focusing on longer-term customer acquisitions rather than adding masses of low-value players.
Successful affiliate sites will be the platforms that adapt to the new mature market the fastest and with the most effective strategies. Affiliates are no longer just tools that operators use to attract broad traffic. These companies must provide ongoing data and personalized marketing strategies to provide the best support to operators.
Author: Shmulik Segal, Founder and CEO of Media Troopers
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