Next Sunday (20) begins the most important sporting event on the planet. For the first time in the Arab world, the Qatar World Cup even needed a date change to lessen the impact that mid-year heat could have on athletes.
Bookmakers around the world are keeping an eye on the possibilities that the Qatar World Cup will offer and all are taking numerous actions to increase the visibility of their brands and generate impressive business with an expected growth in turnover of around 30% during the tournament.
The sports betting industry, according to market studies, exceeded US$ 70 billion in financial transactions in 2021 and is expected to reach US$ 140 billion by 2028.
In Brazil, the growth of activity has been impressive, even with the sector not having been regulated in time for the World Cup. And for this reason, the country loses the chance to raise billions of dollars in taxes, especially at which such important event so close to kick-off.
According to a survey by Veja, the figure reaches R$ 3 billion (US$ 560m) just for the World Cup. In addition to taxes, without regulating the activity, the government ceases to receive more than R$ 2 billion (US$ 374m) in license fees, if considered 100 bookmakers paying what was defined in the draft regulation released by Games Magazine Brasil (R$ 22 million -US$ 4.1m- for each license).
The World Cup, which begins this Sunday (20) in Qatar, may not be a Saudi business, but it is an activity that has seen substantial growth not because of the gaming sector itself, but especially because of its marketing appeal that surpasses any analysis.
And it's easy to imagine what the World Cup stands for. In the group stage, bookmakers will really be in full swing, with many markets to be taken advantage of. But when this first stage ends, the more spaced games end up promoting a slowdown in sportsbooks. Therefore, the main houses prepare numerous activations to face this retreat.
Games Magazine Brasil listened to some important players in the industry to understand how the segment is following the final movement of the activity before the start of the Qatar World Cup, an event that is a unique experience for bettors from all over the planet.
Marketing opportunities
Thomas Carvalhaes, director of Vai De Bob, says the World Cup is a unique opportunity to publicize the brand and its products. "In the group stage there is an immense opportunity to diversify the product and marketing activations. The challenge for bookmakers is after this stage, as there are fewer games until the final. It's two or three weeks with a very small schedule. Not to mention that other sports stop, remaining virtually only the NBA. There are many marketing opportunities, but I don't think there will be such a big increase from a betting volume standpoint. The trend is not to rise as much as some imagine," he says.
Fellipe Fraga, COO of EstrelaBet, has a slightly different view. For him, because it is a moment that every Brazilian dreams of, this will eventually be reflected in the volume of bets. "The big difference right now is that bookmakers are treating the user very carefully. For EstrelaBet, the customer is gold and to him we are dedicating all our efforts to offer a unique experience. I'm sure when people sit down to watch the games, they'll take advantage and place their bets with the bookmaker that most attention is paid to," he said.
Lack of regulation does not allow collection
Even without regulation, the movement is intense in bookmakers operating in Brazil, including because the World Cup is one of the most popular sporting events on the planet for moving billion-dollar figures, including sportsbooks, which benefit from the exponential increase in the flow of users in this period.
In the assessment of Udo Seckelmann, lawyer and industry expert, it is regrettable that the government did not regulate the activity in time for the World Cup. “The delay of the Brazilian Executive Branch in regulating the activity ends up keeping betting operators established in foreign jurisdictions and without the opportunity to graduate in Brazil, which harms both the collection of taxes by the government and legal protection to Brazilian consumers/bettors."
According to him, "the expectation is that Brazil does not waste more time and respect the regulatory deadline established in Law 13.756/2018 so that at the 2026 World Cup we already have a mature market for sports betting."
Even with all this expectation and doubts because the activity was not regulated in time for the 2022 edition, the visibility of bookmakers is a reality and shows that the sector is more than consolidated, even without the presidential decree regulating a business that marketing actions and activations have already reached every corner of Brazil.
Luiz Felipe Maia, partner at Maia Yoshiyasu Advogados, points out that "despite all the efforts of the Ministry of Economy and the repeated interest of several international operators in obtaining operating licenses in Brazil, we are approaching another World Cup without the regulated sports betting law." According to him, "this frustrating reality, however, has not cooled the interest in the Brazilian market. On the contrary, there has never been so much marketing investment in the sector. The general expectation is for records in the volume of bets and in the capture of new customers."
"Given this scenario, all of us (especially you, reader of GMB), who have worked for so many years for the development of the gaming and betting market in Brazil, must join forces to mobilize the press, sports entities and the general public, demonstrating the urgency of regulating the market and the importance of President Jair Bolsonaro signing the draft decree prepared by the Ministry of Economy," he says.
André Vinícius de A. Alves, commercial director and partner of Control+F5, points out that "the moment of the World Cup is an unparalleled period for the betting market. The growth of the sector in recent times and the proximity of a regulation are factors that positively impact on the entire movement of bookmakers. If we already had a very favorable moment of consolidation of this segment in the daily life of the Brazilian public, the arrival of the World Cup adds a cherry on the cake that is to join this market with the greatest passion of the Brazilian, the long-dreamed and expected World Cup."
For the executive, the marketing actions for the event have already been done and now "I believe that we have the chance to spread even more knowledge to the public about what the betting market is. Delivering entertainment and that extra special spice to the passion of Brazilians, with the possibility for everyone to bet on what they love, will be etched in people's minds."
Difficult to compare with other World Cup editions by the time it takes place
Pinnacle has also been preparing a lot for the 2022 World Cup. According to Florencia Brancato, firm's head of global markets, "undoubtedly sports betting companies are waiting for four years for the arrival of a World Cup. This year it will be difficult to compare with other editions, since it happens in a different time than the traditional, but we are sure that there will be a growth in demand, especially recreational players."
According to her, "Pinnacle has prepared all year to arrive at this moment with very good offers for the consumer and numerous promotions so that they can participate and enjoy the best and at the same time cheer for their countries or for those who like them the most".
Newton Neto, CMO and partner at the NSX Sportsbetting Ecosystem, is excited about the arrival of the Qatar World Cup. "The movement of bookmakers is growing daily. There is still much to mature in Brazil and the curve is upward. The World Cup will generate record over record," he comments.
For him, the World Cup transforms the sports betting industry. "It's a different scenario because there are few events, so there's an increased risk for sportsbooks. We have a considerable amount of betting and with the World Cup we open up to other audiences. Everyone's used to the famous pools. So we believe we will bring more female audiences and people who are not bookmakers to our group. We will exceed expectations, not least because we have little time of operation and every day we exceed each other. I believe that the World Cup will be another point off the curve," he highlights.
The NSX Sportsbetting Ecosystem Group stands out for having some of the most important bookmakers operating in Brazil, such as Betnacional, MrJack.Bet, PagBet, Betpix and others. Betnacional, in fact, is very focused on the World Cup, to the point of having closed an important sponsorship contract with TV Globo to serve ads in the intervals of the matches in the largest TV station in South America, and be the sponsor of the main organized fans of the Brazilian national team, the ‘Movimento Verde Amarelo’, which will represent Brazil in the stands of Qatar.
Great user experience
NetBet is also very attentive to the needs of its customers and a better user experience in view of the World Cup. So much so that it recently made a number of changes to the site to make navigation easier and more user-friendly.
"The World Cup is a unique moment for us and offering a website where the user feels at home fills us with pride. The changes were made precisely for the event and the feedback from our users are reflected in a better interaction and, obviously, with an increase in the volume of bets," highlights the company's marketing team.
Jesús Rafael Campos, CEO of BetConnections, says that the World Cup is the most important sporting event and brings together the largest number of football lovers on the planet. "For us, it is a pride to present a first-level platform for global betting within the 14 markets where we participate. It offers multiple languages and markets and that's why we are one of the region's leading companies."
According to him, the company has further promoted the approach with BetConnections partners to meet them in all their needs "so that they offer their customers the best solutions. We want to continue to excel in the segment, with a safe, reliable and very friendly platform," he comments.
So much so that BetConnections has just launched the new version of its sports betting platform with numerous improvements, both in risk management and in the variety of interfaces and bonus creation, among other features.
In addition, according to the executive, BetConnections is starting its GLI certification process that will allow the company to further expand its market penetration, "with products and services that will strengthen our portfolio and ensure success to our partners," he said.
Strong media presence
Fábio Wolff, director of Wolff Sports, is another enthusiast of the moment leading up to the World Cup and, in his assessment, the main sports bookmakers operating in Brazil have done their homework to offer the best solutions to their customers.
"They are very involved with the World Cup and if many of them are sponsoring events and creating fan-fests to get even closer to their audience. In addition, in this final phase leading up to the start of the World Cup, numerous bookmakers have sought new brand ambassadors to increase visibility. Many of them are related to the Brazilian national team and today it is even difficult to find a five-time world champion available in the market," he says.
For the executive, with extensive experience in sports marketing, the cauldron continues to boil and "several bookmakers bought a lot of media and sponsorships on TV. We see examples of Pixbet, which has a sponsorship quota at Globo, and Betnacional that will be in the breaks of the games on the station."
And it's not just on TV. Wolff highlights the satisfaction of seeing that radio stations also have their grids full of advertisers from the sports betting industry. "They are getting involved with this market and are very well prepared for this great party that is the Football World Cup, a national passion."
Fernando Garita, Betcris's director of business development, admits that this edition of the World Cup will be a little different, due to the moment of the year it is being held. "In the case of the Latin market, due to the time of the games, there may be some inconvenience, but nothing that significantly impacts the interaction of bettors with sportsbooks. We must not forget that the event is still the World Cup, in which each fan will dedicate themselves with affection to cheer for their countries. And we have good expectations that it will be very competitive and the online game will show its strength," he says.
In Betcris's executive analysis, "customers will bet and we know that passion will speak louder. We are working customer service, which will be with us risking your guesses, following streaming broadcasts and engaging in a unique experience that only a World Cup can provide."
Mateus Dantas, CEO of Rei do Pitaco, a daily fantasy game with great success in Brazil, is also attentive to the start of the World Cup in light of the possibilities that the event offers. "This will be the first Cup for Rei do Pitaco and, therefore, we want to innovate in the daily fantasy game market with something that has never been done before by any sportstech," he says.
According to him, the company was consolidated this year with several pioneering actions, such as the creation of women's leagues, in which were made rosters of the Copa América Women and Paulista Women, announced the revelation player Endrick as ambassador and sponsored lives of the streamer Casimiro for the exclusive broadcast of the matches of the Brasileirão championship.
"Now, we cannot fail to participate in the biggest football event in the world, in which we created the league ‘Selection of the Million’ for the debut of Brazil against Serbia, where will be R$ 1 million –US$ 187,000- in prizes distributed to the highest rated," Dantas.
Source: GMB
