A study by Itaú showed that the online betting and gaming sector has a net profit of 23.9 billion reais and spends almost 9 billion reais on marketing.
By identifying how much these companies spend on advertising and how much this cost represents of their total revenue, economists Luiz Cherman and Pedro Duarte, from the bank’s macroeconomic research department, arrived at an estimate of the sector’s total revenue. The report is titled “Paris online: estimates of size and impact on consumption”.
Marketing with online betting exceeds R$8.5 billion
It is estimated that the sector spends between 5.8 and 8.8 billion reais on marketing, with 3.5 billion allocated to football sponsorship. Companies in Brazil direct 45% to 75% of their revenue to these actions, based on financial data from 2021 to the first quarter of 2024.
In the United Kingdom, for example, the oldest market in this segment, betting regulation arrived in 2005. Marketing expenses represent around 20% of gross revenue.
In the United States, where the betting market is still expanding (it has been regulated since 2018 by most states), companies spend even more in this area, almost 30% of their income.
The Brazilian market is even younger than the North American market, as the national regulatory law was only approved in December 2023.
However, the study estimates that a good approximation is that companies located in Brazil spend what Americans spent a few years ago – in 2021, for example, when marketing spending in the United States varied between 48% and 75% of revenues.
Football marketing goes beyond 90 minutes of play
Kelvin Pereira, director of BETesporte, an online sports betting platform, stated that the company is directly involved in Brazilians’ passion, which is football.
“We support many clubs, including the main ones in the Center-West, such as Goiás and Vila Nova, promoting actions that reach their big fans. Furthermore, we offer good conditions on our platforms every day and ask for safe and responsible gaming.”
Leandro Figueiredo, head of sponsorship at EstrelaBet, a company that sponsors clubs such as Internacional, Criciúma, América-MG, Ponte Preta, Botafogo-SP and CRB, highlighted that the reach of football communication in the country motivates investment.
“It’s something that not only lasts throughout the 90 minutes of play, but goes beyond the four lines. Football allows us to participate in historic, decisive and exciting moments with our brand.”
According to him, sport, especially football, is also essential for the brand’s positioning in terms of memory and reputation. “We always try to sign agreements with clubs that have a very clear governance process, we value the management process”, explained Figueiredo.
Online betting has attracted the attention of large groups
Thus, the rapid growth of online betting platforms in the country has encouraged the entry of large groups into this segment. Recently, Globo and MGM Resorts International announced an agreement to launch BetMGM in Brazil from 2025. Next year is the deadline for all regulations to finally come into force.
Excerpts from the statement state that the new platform will be “best in class, with responsibility for one of the youngest and fastest growing regulated markets in the world”.
In other words, this is the first time that a Brazilian communications group has actively invested in a company in the sector. However, SBT and Band are also mobilizing to enter the sector.
The first deadline for obtaining a license for companies wishing to operate in Brazil ends next Tuesday (20). To date, 44 operators have already filed a request with the Ministry of Treasury.
