Betfair submits application, Flutter aims for leadership in the Brazilian market
Flutter CEO Peter Jackson stated in the Q2 earnings on August 13 that Flutter aims to become the leader in the licensed gambling market in Brazil.
When asked about acquisitions, he mentioned that Flutter has not yet finalized plans for the region.
He said: "We will figure out what we want to do in Brazil, and when we make a decision, we will let the market know what we want to say."
From the Q2 results, Brazil's fixed exchange rate growth rate was 11%. Its Betfair brand submitted an application for a Brazilian gambling license on the day of profitability.
"I think the Betfair brand occupies a quite advantageous position in that market," Jackson told analysts. "Of course, we also operate PokerStars there."
"We are ambitious, right? We want to reach the podium. I really want to win the gold medal."
A survey by ENV Media in July found Betfair to be the most well-known gambling brand in Brazil, with 9.52% of respondents recognizing and trusting the Betfair brand, while Betano was at 9.41%.
Latin America not in DraftKings' plans
Despite the American giant DraftKings not planning to expand to Latin America soon, the potential of Latin America, especially Brazil, is attracting the attention of most industry insiders.
In response to an analyst's question, DraftKings CEO Jason Robins said they have no plans to enter the region through internal development or acquisitions, but he mentioned that if they were to enter, it would also be through acquisitions.
This is a strategic shift for DraftKings, which was one of the first 130 operators interested in the Brazilian market after the House of Representatives finally approved gambling regulation on December 21.
Brazil is key to Entain's growth strategy
International markets, including Brazil, helped boost Entain's net gaming revenue (NGR) by 6% year-over-year in the first half of the year. Entain's Chief Commercial Officer and President Sameer Deen told analysts that winning in Brazil is essential for driving future organic growth.
The company's net gambling revenue in Brazil grew by 9% in the first quarter and then by 48% year-over-year in the second quarter. The company stated that it expects to continue this growth momentum in the second half of the year as the legal market approaches.
The number of first-time depositors (FTD) in Brazil was higher than in 2022 and 2023. The company attributed this to more efficient marketing spending and an improved betting experience using its Sportingbet brand. Entain submitted a gambling license application in Brazil in July.
Entain's Chief Product Officer Satty Bhens stated in the mid-year financial report conference call that the size of the localization team has doubled to enhance Entain's competitive advantage in markets such as Brazil.
Rush Street Interactive not rushing into the Brazilian market
A highlight in Rush Street Interactive's Q2 earnings was that the company's revenue in Latin America soared by 72.4% to $31.9 million. The region's monthly active users grew by 72%, reaching 224,000.
The company will continue its expansion in Latin America, with its RushBet brand launching iGaming and online sports betting in Peru in July, as part of the company's "strategic advancement" in the region.
However, despite success in other parts of Latin America, Rush Street Interactive CEO Richard Schwartz also stated that the company will not rush into the Brazilian market, although it still plans to launch products there.
"Brazil is a huge and exciting market," Schwartz said during the financial report conference call. "There are many moving parts. We must maintain discipline and consider more carefully how to enter this market."
Betsson achieves record results in Latin America
Before the earnings announcement season, Betsson took a series of actions, obtaining licenses for its Betsafe and Betsson brands and its subsidiary Inkabet.
Betsson's Q2 revenue in Latin America reached a new quarterly high, growing by 21.8% to 62.6 million euros. Latin America accounted for 23% of Betsson's total revenue for the quarter, which the company attributed to growth in Argentina and Colombia.
In the Q2 financial report conference call, Betsson President and CEO Pontus Lindwall was tight-lipped about the company's preparations in Brazil before the legal market launch date of January 1, 2025.
However, Lindwall did express his excitement about Betsson's plans for the entire region, saying: "I think we have communicated our ambition for this huge opportunity to the market, and that ambition still exists. Therefore, we will put a lot of effort into developing there."
MGM reveals ambitions for BetMGM's Latin American business
MGM Resorts International Interactive hinted at plans to launch its BetMGM brand in Latin America, which is operated by LeoVegas outside the United States. MGM President Gary Fritz stated in the company's Q2 financial report conference call that the brand will soon be launched in Latin America.
"Our strategy's third pillar is to leverage the BetMGM brand to achieve organic growth in regulated attractive markets. We have already launched the brand in the UK and the Netherlands and achieved good early results."
