This week, Lisbon will host SBC 2024, one of the most anticipated annual events in the global betting and gaming industry. As key industry players from around the world gather to discuss the future of AI, product innovation, and regulation in the betting and gaming sector, all eyes will be on the breakout market that’s capturing everyone’s attention: Brazil.
State of the nation – poised for growth
Brazil is in the process of transitioning from an unregulated market into a fully regulated powerhouse. With this shift, some of the world’s biggest operators are racing to seize the sizable growth opportunities in a sports-obsessed nation of over 200 million people. This was highlighted by Flutter Entertainment’s recent $350 million investment, acquiring a 56% stake in NSX Group, the company behind Betnacional, a leading Brazilian betting brand.
Analysts at JP Morgan estimate that, in 2023, Brazil was the 10th largest market globally, with online gross gaming revenue (GGR) of $3.4 billion—an impressive figure for a market still in its early stages of regulation. According to JP Morgan’s research, approximately 30% of Brazilians are already involved in betting, with analysts also citing Brazil’s Central Bank report, which reported nearly $15 billion in customer betting deposits in the 12 months ending June 2024 (with bettors receiving nearly $11 billion – or more than 70% – in payouts). H2GC, a leading industry data provider, projects that Brazilian online GGR will grow by 15.6% annually from 2025, resulting in a compound annual growth rate (CAGR) of 12.4% over the next five years.
Let the Land Grab Commence
With Brazil’s market opening up, competition is already intensifying.
The 16% GGR tax on operators—though lower than in many European markets—remains a meaningful cost, and as a result superior scale and market share will be critical to driving long-term profitability. Flutter’s recent forecast of an EBITDA loss of up to $100 million in 2025 underscores both the significant prize – but also the investment that will be required – in the industry’s latest “gold rush.”
One key factor that will distinguish winners from losers in Brazil is localisation. While major international players such as Bet365, Flutter, Superbet, and Entain are already jockeying for positions, strong local “hero” brands are leveraging their deep market knowledge to retain their competitive edge.
To be successful in Brazil, international giants will need to tailor their offerings to local preferences. This requirement is likely to lead to further M&A activity in the market—following the model of Flutter’s recent deal with NSX—where global powerhouses and locally renowned brands come together.
A Bright Future Ahead
Brazil is set to be one of the hottest topics at SBC 2024, and for good reason. The influx of international operators and their investment in the market will bring innovative products and superior experiences to consumers. At the same time, regulations will protect players, raise overall standards, and increase tax revenues. With its powerful mix of regulatory clarity, strong macro fundamentals, and an incredibly passionate sports culture, Brazil is now ready to make a significant impact on the global stage.
