In this article, inplaySoft will analyze each of these markets, compare them and discuss strategies for global operators to succeed in them.
Brazil: A giant in transition
The seventh most populous country in the world, with over 220 million inhabitants, many of whom have a huge appetite for sports, betting and online entertainment, Brazil is considered by many iGaming companies as a country with enormous potential. The regulatory landscape here, however, is constantly changing. Let's understand it.
Regulations in Brazil
In the 1940s, casinos were banned in Brazil. It was only in 2018, with Law No. 13,756, that fixed-odds sports betting was regulated in the country. Five years later, in December 2023, the Brazilian government sanctioned Law 14,790/23. Among the main changes imposed by the law are:
* Private companies will be able to operate both online and in physical establishments: until December 2023, sports betting in Brazil was only allowed in lottery shops and was controlled by the federal government. As of January of this year, however, any private company will be able to operate sports betting, whether digitally or in a physical space.
* The minimum age to place sports bets is 18 years old.
* Advertisements or any type of publicity directed at minors were prohibited.
* Bettors must have their identity verified and validated;
* Betting houses must implement policies to prevent money laundering schemes and promote responsible gambling.
It is important to note that, in 2023, Provisional Measure (MP) No. 1,182/2023 was also approved, amending Law 13,756/18. Among other changes, this rule allows for greater oversight of the sports betting sector.
Learn more about recent changes to Brazilian iGaming legislation!
India: The world’s biggest potential market
India is often referred to as “the world’s biggest potential market” for iGaming. This is because it is the world’s most populous country, with over 1.4 billion people, and also has one of the largest internet user bases. In addition, the explosion of smartphone usage and high-speed internet in India has created a perfect environment for iGaming to thrive. Mobile apps dominate the market, allowing operators to reach both major cities and rural areas.
Despite its potential, however, there are several challenges that iGaming companies need to overcome to succeed in India. These include:
* Games of skill vs. games of chance: In India, there is a clear legal distinction between games of luck and games of skill. Games such as rummy, fantasy sports and online chess are legally accepted and widely popular, while gambling in casinos or lotteries face greater restrictions.
* Fragmented regulation: India’s regulatory framework is complex, with state laws varying widely. Some states, such as Sikkim and Nagaland, have more progressive regulations for online gaming, while others still prohibit such activities. This fragmentation requires operators to adapt their strategies to cater to different jurisdictions.
Bulgaria: a gateway to Eastern Europe
Unlike Brazil and India, Bulgaria has a relatively small population of around 7 million. However, its location attracts the attention of iGaming operators. The country can serve as a base of operations for those wishing to access Eastern European markets.
Bulgaria’s advantages include:
Clear and attractive regulation: Bulgaria has one of the most favorable regulatory environments for iGaming in Europe. Since 2012, the country has implemented legislation that allows online gambling, with competitive licensing fees and transparency in the regulatory process.
Skilled workforce: With a highly skilled workforce in technology and IT, Bulgaria is an innovation hub for iGaming software development. This also reduces costs for companies that choose to establish their operations in the country.
Comparing the markets
Brazil, India and Bulgaria have different economic and cultural contexts, but they all share characteristics that make them attractive to iGaming companies:
* High demand: Increasing digitalisation and interest in gaming are common in all three countries.
* Regulations in transition: Both Brazil and India face regulatory challenges that, if resolved, could unlock the full potential of the market. Bulgaria, on the other hand, already has a consolidated framework.
* Technology as a catalyst: Mobile connections and technological advances are driving growth in the sector, especially in India and Brazil.
Strategies
To harness the potential of these emerging markets, iGaming operators must adopt tailored strategies, such as:
* Cultural adaptation: Offering products that cater to local tastes, such as sports betting in Brazil or skill games in India.
* Regulatory compliance: Ensuring that operations are aligned with local regulations, even if they are complex.
* Investing in education and responsible gaming: educating players on safe and responsible practices, especially in markets where iGaming is new.
* Local partnerships: working with local partners can help operators navigate cultural and legal barriers.
Final thoughts
Brazil, India and Bulgaria are emerging markets in the iGaming sector that offer immense potential for operators. However, each country requires a different approach. Brazil, for example, is on the cusp of a regulatory transformation that could unlock billions in revenue. India, with its large population and passion for skill games, is a gold mine waiting to be explored. Bulgaria, on the other hand, has clear regulations and a skilled workforce, and is a strategic springboard into Eastern Europe.
With the right strategies and a keen eye on the specificities of each country, iGaming companies can thrive in these markets and contribute to the global growth of the industry, while fostering a safe and innovative environment for players.
Source: inplaySoft
