Betano Leads Brazil’s Grey Wagering Market with 23% Share, Legal Market Launch to Spur Growth

Betano is currently leading Brazil’s grey wagering market with a commanding 23% share, according to a new white paper from OpenBet, which incorporates research from global industry data consultancy H2 Gambling Capital (H2GC). The report highlights Betano’s prominent position in Brazil’s betting landscape, followed closely by Bet365, which holds a 20% share of the market.

The OpenBet white paper offers exclusive data analytics and projections from H2GC, revealing that Betano has surged ahead as the dominant player in Brazil’s grey market. However, the landscape is set for significant changes. With the legal market expected to launch on January 1, 2025, H2GC foresees heightened competition, as both local and international brands will vie for a stake in what could become one of the most lucrative betting markets globally. H2GC predicts that Brazil’s onshore betting market could reach $10.1 billion (£7.7bn/€9.2bn) in gross gaming revenue (GGR) by 2029, nearly doubling the current market size.

For 2025, H2GC estimates the Brazilian legal online sports betting and igaming sectors will generate around $5.6 billion in GGR. Of that, $3 billion will come from online sports betting, while igaming will account for $2.6 billion. H2GC’s analysis positions sports betting as the dominant sector, expected to make up 55% of the GGR, with slots, including popular crash games, contributing 27%, live casino accounting for 6%, and other igaming categories representing 12%.

The report notes that football, a sport deeply ingrained in Brazil’s culture, will be a critical factor in sports betting, contributing 86% of sports betting GGR and 78% of turnover. As H2GC points out, about 50% of Brazil’s online sports bettors wager weekly, while 21% bet daily, and 29% bet occasionally.

Betano’s success is further underscored by research from Env Media, which found that the Kaizen Gaming-owned brand is the most recognizable and trusted betting platform in Brazil, second only to Bet365. This prominence in Brazil’s grey market has set the stage for Betano’s continued influence, even as the market transitions to a fully legal environment.

With the legal framework set for implementation, H2GC anticipates that Brazil’s sports betting market will outperform igaming. By 2025, bet builders are expected to be key revenue drivers, with multiples boasting a margin of 21.5%, compared to just 6.7% for singles. The overall margin for Brazil’s betting market stands at 9.3%. In-play betting will also play a significant role, with a turnover of 60%, far outpacing pre-match bets, which account for 40%.

By 2026, H2GC projects that Brazil will have 39 million active online betting accounts, translating into an onshore online GGR of BRL 29 billion (£4bn/€4.7bn/$5.2bn). This would mean that about 15 million adults, or 9% of the population, will be active in online betting. In comparison, more mature markets like the UK see 24% of adults holding active betting accounts, while the Netherlands sees just 5%. Despite these differences, Brazil’s per adult GGR, at $34, trails well behind markets like the UK ($163) and New Jersey ($592). However, when GGR is measured as a percentage of GDP, Brazil leads with 0.12%, ahead of established markets such as the UK (0.09%) and Mexico (0.05%).

The white paper also delves into responsible gambling, incorporating research from Neccton, a gambling, anti-money laundering, and fraud detection technology specialist acquired by OpenBet in June 2023. Neccton’s findings address concerns surrounding addiction, a key issue for opponents of legalized gambling in Brazil. According to a survey conducted by market research firm Hibou, 10% of Brazil’s population has experienced financial problems related to gambling.

Neccton’s research highlights that players who set deposit limits are 18% more loyal, with 90% of bettors who self-exclude for short periods returning to gamble responsibly. It found that deposit limits of more than 15 minutes are the minimum required to be effective, with 55% of players logging off or closing their accounts within that time frame.

The report also emphasizes the need for personalizing player protection measures. Neccton revealed that tailored messages improved effectiveness by 100%, while 70% of online bettors found messages about significant losses impactful.

As Brazil’s legal betting market prepares to launch in 2025, the findings from OpenBet and H2GC suggest that both local and international operators will face an increasingly competitive landscape, driven by consumer demand, responsible gaming practices, and regulatory developments.

By fLEXI tEAM