Practically every Brazilian is already a “coach” of their favorite team. Everyone seems to always have an opinion about who is playing well, who needs to be replaced, or who should to be transfered to another club. But there are people who have turned this “bar talk” into a profession – and are earning a lot of money from it.
Gerlison Ferreira, bron in the Amazonas regon, was the first to earn R$ 1 million (US$ 210K) in a fantasy game, a type of entertainment in which a user manages sports teams virtually, but with real athletes, who play in real teams. If it is selected an athlete who performs well in “real life” championships, the user earns points and even prizes.
In Brazil, this type of entertainment already generates an annual revenue of R$ 66 million (US$ 13.7m), according to a study by TechNavio, which analyzes global markets for new technologies.
“The news [of R$ 1 million accumulated in prizes] took me by surprise. This money will help me achieve many things I've always wanted, but never been able to have. What I really want to do is give a better life to my parents who have always fought hard for me,” says Ferreira.
350x growth in three years
A pioneer in the so-called sports tech (sports technology companies), the United States moved more than R$ 44 billion (US$ 9.15b) in the sector in 2021. It is estimated that the global market, valued at US$ 26 billion, will grow 120% by 2026.
In Brazil, according to a 2021 survey by the accelerator Liga Ventures, there are already 106 sports techs in operation. The leader in the short-shot modality, Rei do Pitaco, has grown 350 times since it was created in 2019. Its app has accumulated 3.2 million downloads. More than 100 thousand users have already been awarded with a total value of R$ 50 million (US$ 10.4m).
“Our mission is to transform the lives of those passionate about the sport and, therefore, we constantly create leagues to entertain and encourage our players to achieve their goals also outside the fields. In the first rounds of the Brazilian Championship alone, for example, we have already distributed more than R$ 5 million (US$ 1.05m) in prizes,” says Mateus Dantas, CEO and co-founder of Rei do Pitaco.
Its direct competitor, Cartola FC, also adhered to the idea of providing active gains to users per round and announced, this year, the arrival of Cartola Express.
Cartola FC was created in 2005 and is the second largest fantasy game in the world, achieving the feat of 30 million downloads and 6 million active teams in 2021 alone.
Looking at the World Cup
In addition to prizes and millionaire leagues, Rei do Pitaco recruited streamer Casimiro this year. With the sponsorship of sports tech and partnership with Clube Athletico Paranaense, Casimiro will broadcast live 19 Brazilian Championship games on Twitch.
“I've always loved fantasy football games. My audience also plays and waits for this type of content in the lives,” explains the influencer, with 2.4 million subscribers on his Twitch channel.
“Now I always select my team and I keep getting messages from ‘nerdolas’ showing that they made money on the app. I recently received a print of one that won almost R$4,000 (US$ 830) with the team he put together,” he says.
The 2022 World Cup, which takes place at the end of this year, promises to further heat up the innovation and technology market for startups in this universe. “We have great expectations for that date,” says Dantas, without revealing details.
Is there a law that regulates fantasy games?
Fantasy games are not considered games of chance. They are defined as skill games, that is, the result depends on the player's aptitude and not on a future and random event.
According to criminal lawyer and professor of criminal law and criminal procedure Roberto Vasconcelos da Gama, “Brazil does not yet have specific legislation on the regulation of betting applications. However, Bill 442/91, recently approved by the Chamber of Deputies, creates the Regulatory Framework for Gaming in Brazil and allows the practice and exploitation of gambling and casinos in the country.”
Among the main rules of this Regulatory Framework for Gaming are:
*Permission to practice and exploit games and bets in physical or virtual establishments, provided that they have the consent of the Government;
*Creation of the National Gaming and Betting System (Sinaj), composed of a federal regulatory body, gaming and betting operators, tourism organizations and gaming and betting agents, auditing companies and market self-regulation entities;
*Creation of the National Register of Players and Gamblers (Renajogo), to ensure control of the activity from the player's point of view. The same must register with that body before participating in games and bets;
*Implementation of an institution focused on the National Policy for the Protection of Players and Gamblers, with rules yet to be defined;
*Creation of Cide-Jogos (Contributions for Intervention in the Economic Domain), a tax intended to finance actions in the areas of tourism and sport that are aimed at combating gambling addiction;
*Requirement of an operating license for interested companies. They must be headquartered and managed in the country and will be subject to rules to be defined by a federal regulatory and supervisory body;
Despite these considerations, the former President of the Republic, Michel Temer, in December 2018, sanctioned Law 13,756/2018, which provides for the National Public Security Fund (FNSP), on the destination of the proceeds from the lottery collection and on commercial promotion and the lottery modality called fixed-odds betting.
In this way, it makes sports betting legal in the country, as long as they meet certain requirements, including that bets must be fixed odds. That is, at the time the bet is made, it must be defined how much the bettor will win, if his guess is correct.
Source: uol.com.br
