Antônio Albe spent 5 years at bet365 in Stoke-On-Trent as an Operations Review Analyst and has recently moved to Bulgaria to start a new professional project working with Latin America. Due to his vast experience, the author shares here his vision of the industry in order to encourage a purposeful debate, drawing the attention of stakeholders to areas that he considers crucial from the point of view of European operators in relation to the development of the Brazilian market. .
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Despite the risks and uncertainties, the largest and most important country in South America presents a great opportunity for those wishing to consolidate an active customer base before regulations come into play.
Brazil can no longer be considered a sleeping giant. Latin America’s largest country is definitely awake, but a little shaken and perhaps a little confused. Still, it presents one of the best opportunities the industry has seen in a long time. European analysts believe that the Brazilian market could reach US$ 1 billion by 2025, and a significant portion of this amount is already available and up for grabs.
Despite the huge market value and the favorable technological scenario, driven by high rates of internet coverage and smartphone penetration, European and American operators are still hesitant to establish a solid position in the country. The hectic political environment, uncertainties about the future of verticals, the enormous challenges presented by the business environment in Brazil and the lack of experience of local stakeholders in the industry are among the main causes for such suspicion.
However, the opportunity to drive global growth is so attractive that some industry heavyweights are already up and running in the country. Analysts believe that the benefits of having an active and known customer base when regulation is in place outweigh all the risks posed by the uncertainties of the current moment. However, the most appropriate market development strategy continues to be a central topic of debate among European operators.
The idea of a global strategy, guided by a product-centric orientation and enhanced by the scale factor, is opposed to the vision of a market-oriented plan whose main objective is to respond quickly to specific market demands and is supported by the , constantly mentioned, location factor and a greater understanding of the existing nuances in the Brazilian environment,
The size of Brazil and the country’s diversity make the decision even more complicated. The undoubted benefits of adopting a market-focused strategy can be compromised by the huge cultural differences that exist from region to region. However, some similarities, such as the sporting landscape, demographic elements and the influence of the internet on society’s behavior, constitute an excellent opportunity for an approach at the national level.
In addition, the constantly mentioned “generational challenge” faced by the industry seems to be another crucial point for the success of any initiative in the country, and, invariably, must be considered when adopting the strategy. The lack of legal gambling activities in Brazil over the past 80 years has made younger generations a large portion of the potential customer base. And therefore, operators cannot afford to neglect this aspect if they aim to achieve the established objectives.
The adaptation of portfolios and the implementation of marketing strategies developed to deal with this reality seem to be key factors and fundamental pillars of any strategy developed for Brazil. Issues such as establishing a solid presence on social networks, offering Esports, considering products such as “micro-betting”, being aware of the concept of gamification, bringing innovations related to “social betting” and investing in content creation and customized communication are non-negotiable assumptions .
Additionally, local expertise and efforts aimed at building, storing and sharing knowledge are essential. Likewise, understanding the legal and political systems and a full legal understanding of the consumer relationship are key aspects for risk management purposes. Operational compliance and strategic partnerships must also be present in any discussion as they will be vital to managing threats and ensuring favorable business outcomes.
From a personal point of view, I have no doubt that, despite the challenges, the Brazilian opportunity can be considered pure gold, and now is the best time to exploit it. I’ll be on ICE next month, available for anyone who wants to talk.
