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Where does the Sport of Kings fit into the Brazilian market?

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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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ZITRO SHOWCASED DIVERSE PRODUCT PORTFOLIO AT IGA 2024

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Zitro exhibited its new product lineup at the 2024 Indian Gaming Tradeshow & Convention (IGA) held in Anaheim, California. Their commitment to the tribal gaming community was evident, drawing attendees eager to explore Zitro’s latest innovations: a diverse range of new games finely tuned for the U.S. market.

Operators had the opportunity to experience firsthand the quality, innovation, and unique personality that define Zitro. The showcase featured a selection of recently launched games and mechanics from G2E Las Vegas, including the player-favorite, Fu Pots, a title that has been delivering exceptional performance across the U.S. and global markets.  

Adding to their impressive display, Zitro also introduced brand new games such as Drum Dynasty, featured on the Allure Glare cabinet, which promises thrilling gameplay with its unique Bonus Mighty and Bonus Power that enhance Link symbol prizes. Night Link, showcased on the Illusion Glare cabinet, offers a captivating combination of three functionalities – Boomerang, Storm, and Collect – that can unlock up to 8 different bonus links. Finally, the premium Altius Glare platform housed Epic Empires, featuring a brand-new 3-Level Link Evolution Bonus.

“We are grateful for the opportunity to connect with the tribal gaming community at this year’s IGA show”, said Derik Mooberry, CEO at Zitro USA. “Our commitment to innovation was on full display, and the energy and interest surrounding our product lineup solidified Zitro’s position as a trusted partner in the U.S. market. This is just the beginning, as we remain dedicated to developing cutting-edge products that meet the demands of both players and casinos”.

 

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Taking the gamble out of Accelerating Growth: Maximising Your Marketing in New Sportsbetting Markets

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By: Kalen Bushe VP Customer Growth at TrafficGuard

Too many sportsbooks are wasting their marketing dollars. As new markets open, they have to make every dollar count when it comes to winning to new players.  Regions like the Middle East and Latin America (LATAM) are opening, and it is critical that sportsbooks optimise their marketing to win market share.

These emerging markets present sportsbooks with a golden ticket to expand into a new region and increase profits. These opportunities are being matched with new complexities in their digital marketing activities. Invalid traffic (IVT) is as a barrier to expansion by draining digital advertising budgets and reducing ROI without sportsbooks recognising it.

IVT encompasses any activity originating from sources lacking genuine user interest, including ad fraud, bots or returning users. While invalid traffic goes unchecked, sportsbooks won’t see the full value of their digital advertising campaigns and lose a competitive edge in new markets.

70% of surveyed iGaming operators reported to be expanding into online gaming markets in Central and South America in the next three years according to a GBG survey. This means there’s a lot to win by getting marketing right and not wasting advertising spend on attracting the wrong audiences, fraud or bots.

They key is to understand potential opportunities and recognise risks in digital marketing. Every sportsbook needs to maximise ROI on every dollar they are spending, and it becomes even more crucial when trying to gain critical mass in newly opened markets.

 

Bots, Timewasters, Fakers and Fraud

Legislation is loosening worldwide, over the past few years North America has seen numerous states legalise sports betting. Similar changes have happened in Brazil, where online gambling regulations were passed in late 2023. These changes have paved the way for sportsbooks to explore exciting new markets.

However, sportsbooks are being fed inaccurate campaign data by IVT. This inflates impressions and impacts future ad campaigns as sportsbooks funnel ad spend into projects that aren’t performing as well as it would seem, giving competitors the chance to take the lead in new markets.

IVT includes non-human traffic which typically takes the form of bots powered by artificial intelligence (AI). Bots can create a multitude of fake accounts and use them to exploit promotions undetected. Despite the implementation of rigorous registration verification checks by many operators to combat this issue, it remains a significant challenge. This poses a hurdle for sportsbooks seeking to attract users and carve out a presence in new markets, especially with bonuses, which can lead to a drain on their campaign resources. On average, around 5-7% of sports betting campaigns suffer from this form of media loss.

Bots aren’t the sole concern for sportsbooks in safeguarding against inauthentic engagement. Navigational traffic stemming from returning users, who are already part of the customer base, also poses a significant challenge as they unintentionally deplete budgets. When these users try to reach a site via search engines, they inadvertently click on paid brand advertisements, consequently inflating customer acquisition costs (CACs) without contributing to conversions, thereby causing losses for the sportsbook. Without an effective strategy to manage returning users, optimising campaign value becomes considerably more difficult.

 

Taking Down Barriers to Growth

For sportsbooks to flourish in emerging markets, the first step is to counter IVT. IVT damages budgets by remaining undetected, therefore it’s crucial that sportsbooks maintain visibility into their traffic.

Monitoring traffic as it passes through systems is key. Through this, sportsbooks can identify any irregularities, such as traffic from an unknown origin. This could be an indicator of IVT, which can then be identified and dealt with before the campaign can be interfered with.

The increasing frequency of non-genuine engagement is difficult for teams to monitor unaided. An ad verification platform can fill in the gaps and accurately pinpoint any threats and mitigate them directly. These platforms work to validate traffic in real-time, determining the origin of traffic and blocking it from entering systems if it’s suspicious to proactively protect budgets.

It is also possible to control the number of times returning users interact with your campaigns without risking damaging the relationship they have with sportsbooks. Setting custom verification rules is an effective method of limiting the number of times an ad can be clicked on by a certain user. Once the user reaches the threshold for clicks, they’re prevented from seeing it, which significantly reduces cost-per-click (CPC) rates.

This can be further expanded upon by deploying shadow campaigns. These are an effective way of maintaining optimal engagement by duplicating current campaigns set up with lower CPC. This funnels returning users away and prevents them from driving up costs. The budget saved can then be committed to growth in new regions.

 

Winning Big in New Markets

The sports betting industry is opening doors worldwide for sportsbooks to gain audiences in places they never could before. Excelling in newly legalised markets against a multitude of competitors is a difficult task, only being made harder by the interference of IVT.

By tackling non-genuine engagement, sportsbooks give themselves the advantage back over competitors. With full visibility and control over campaigns, their full potential can be realised to ensure sportsbooks can focus on global expansion.

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STAKELOGIC INKS NEW DEAL WITH PLAYUZU TO BOOST MEXICAN PRESENCE

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STAKELOGIC INKS NEW DEAL WITH PLAYUZU TO BOOST MEXICAN PRESENCE

 

Stakelogic’s slot and live casino content is now available for Mexican players at PlayUZU. The industry-leading content provider is delighted to add the Spanish operator to its ever-growing list of partners as it further cements its position in one of Latin America’s most booming markets.

As a result of this strategic partnership, Stakelogic will have the chance to expand its rapidly growing presence in Mexico. The deal will allow PlayUZU players to sink their teeth into Stakelogic’s diverse range of classic-themed slots and modern, innovative titles.

Among Stakelogic’s leading slot titles are modern hits like Wild Hogs, Pigeon Hut, and Tiki Tiki Hold ‘N’ Win, each of which stands out for its own unique gameplay, striking designs, and game-changing bonus features.

PlayUZU will also bolster its position as one of the best operators for live casino content in Mexico by integrating Stakelogic’s full portfolio of immersive live casino games onto its platform. Customers will be transported to Stakelogic’s state-of-the-art live casino studios, where they can enjoy industry-leading games like Speed Baccarat, and Super Stake Blackjack and Roulette.

The fun will not stop there, though. The deal also allows PlayUZU players to enjoy the industry-first Super Wheel Bonus, an optional extra that combines the world of online slots with the thrills of live casino. It whisks players away to a live studio where they can spin the Super Wheel and win big prizes.

Neil Tanti, Senior Sales Manager at Stakelogic said: “Partnering up with PlayUZU in Mexico is an exciting moment for us that will help us further establish ourselves in a key LatAm market.

Mexican players have shown a deep appreciation for our products in the past, and we are excited to work closely with one of the region’s most popular operators to reach a wider audience.”

Jani Kontturi, Head of Games at PlayUZU, said: “Stakelogic’s cutting-edge portfolio makes for a fantastic addition to our games lobby. The developer’s unique brand of daring slot games and immersive live casino content perfectly aligns with the diverse action we love to provide our players.”

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