With Brazil officially opening online gambling from January 2025, the global gambling industry quickly focuses on this hugely potential emerging market.
Even before the regulatory system was in place, the valuation of Brazil's gray market had reached $3.4 billion. According to forecasts, by 2029, Brazil's online gambling total revenue may exceed $10 billion, with 39 million active accounts and a high adult participation rate. This huge growth space makes Brazil considered one of the most potential emerging markets globally.
Steven Valentine, Chief Commercial Officer at Comtrade Gaming, believes that although the opportunities are tempting, companies must face five key challenges to successfully establish themselves:
First, staffing. Language is the biggest barrier, with only about 5% of Brazilians speaking English, so it is necessary to recruit local employees who speak Portuguese to ensure effective communication with customers.
Second, localization of operations. Companies must be familiar with Brazil's unique payment systems, gaming content preferences, and KYC processes, and products and services need to be deeply integrated into the market.
Third, market education. Valentine points out that many local companies are accustomed to low-cost, rapid development models, while providers like Comtrade, which emphasize high quality and stability, need time to communicate their differentiated value to the market.
Fourth, regulatory challenges. Brazil's regulatory framework is complex, and each major update requires re-certification. The high licensing fees have already deterred some companies, and it is expected that local companies will share the costs in the future, or more mergers and acquisitions will occur.
Fifth, intense competition. Valentine says that the surge in platform providers has led to increased market price sensitivity, and companies need to establish core advantages in service quality and product differentiation to stand out.
Despite this, Valentine believes that the Brazilian market is still far superior to the US market. He expects that not only will sports betting thrive in the future, but casino games will also become a growth engine. As user awareness increases and regulations become clearer, Brazil has the potential to grow into the world's largest single gambling market.
