Historically, betting has always been a very popular form of entertainment. Especially when it comes to the sports world, they are known to add value to the experience of fans of various modalities, even though they are often seen as a marginal niche. However, even this cautious view has been diminishing in recent years due to one simple factor: digital transformation.
Technological advancement and instant payments (Pix) have completely reconfigured the landscape of this sector, facilitating and securing access to sportsbook through specialized and enhanced platforms. In this way, the user base of these services has become global and diversified, which is fully reflected in some milestones reached by this market recently.
For instance, one of them is its annual financial movement in Brazil: around R$ 120 billion (US$ 21.5bn). Additionally, looking only at 2023, the Investor X-ray 2024, released by the Brazilian Association of Financial and Capital Market Entities (Anbima), shows that 22 million Brazilians made at least one bet during this period, representing 14% of the country's population.
It's not just any growth. And that's precisely why we need to have a heightened vision for the potential of sportsbook and work on intelligent solutions within this market.
What are the main challenges for sportsbook?
The initial step to take the next step in the sector is to start looking at its pain points. Undoubtedly, one of the biggest challenges in sports betting is the demystification that it is a highly speculative environment devoid of rigid and adequate legislation.
In this regard, regulating the segment is the greatest weapon to combat this view, establishing a legal framework that promotes a safe dynamic for bettors. This happened in Brazil in December 2023, showing that the practice was not only legalized in the country but also carries clear indications of substantial potential to boost our economy.
To increase consumer confidence and participation in the sector, adapting digital infrastructures to the fast-paced and globalized dynamics of sportsbook is another essential point. More than using technology, new tools need to be directed at solving real problems, improving operations, increasing user journey security, and promoting simplified and efficient experiences.
It's worth noting that many of these demands have been met by fintechs, which have been bringing a range of robust technological solutions to help grow this increasingly competitive market that doesn't have just one consolidated player, as we continuously see new entrants seeking a market share.
The role of the financial market in sports betting
The collaboration between fintechs and betting platforms fosters innovations that benefit both parties and, above all, the users. Solutions like direct Pix, digital accounts, Banking as a Service, foreign exchange operations (eFX), and acquiring debit and prepaid cards are just a few examples, as they provide significant advantages to the sector.
We are talking about instant fund transfers, cost reduction, global access to different currencies, and flexibility for bettors, a reality never before seen by this market. All this optimizes payment processes and multiplies transactions in a short period, always transparently and traceably, distancing the danger of fraud attempts.
For these reasons, it is also essential that financial market entities linked to the sector, due to their notable knowledge and technology, establish themselves as one of the main filters to mitigate risks related to money laundering, access by minors, corruption, terrorism financing, and many other risks that generated a great prejudice against the market.
A broad, objective, and secure coverage can help elucidate collective apprehension, demystifying the industry and opening new opportunities for sportsbook, prioritizing the real customers on the other side of the screen. As a result, the acceptance of the segment tends to be solidified, both in terms of entertainment and investment.
Looking at all this, it is impossible not to imagine a promising future for sports betting. Their potential goes beyond the idea of a "game," transforming into a vital perspective for the global digital economy.
Felipe Negri
CEO of Pinbank
