LatAm Market Heats Up: Flutter, Betsson, and Others Eye Brazil's Potential as Key Players Outline Strategic Plans

The Q2 results season has underscored the burgeoning potential of Latin America's gambling market, with Brazil taking center stage as a key battleground for some of the industry's biggest names. Flutter Entertainment, Entain, Betsson, and others have all highlighted their ambitions and strategic moves in the region, even as they navigate the complexities of entering or expanding in this highly coveted market.

Flutter Entertainment is setting its sights on a leading position in Brazil’s licensed betting market, with CEO Peter Jackson expressing confidence in the company’s potential. During the Q2 results announcement on August 13, Jackson said, “I think we’re reasonably well placed with our Betfair brand in that market. And of course, we also operate PokerStars out there as well. We are ambitious, right? We like to have podium positions. And I really would like to have gold medal positions.” Flutter’s Betfair brand submitted its application for a Brazilian betting license on the same day as the earnings release, reflecting its intent to capitalize on the market’s growth. Although Jackson did not confirm any mergers and acquisitions (M&A) in the region, he hinted that Flutter’s plans for Brazil are still being finalized. “We will work out what we want to do in Brazil and, when we’ve made a decision, we’ll let the market know if there’s something to say,” he stated.

Interestingly, not all industry giants are rushing into Brazil. DraftKings, another major player in the global gambling market, appears to be taking a different approach. Despite Brazil’s enormous potential, DraftKings CEO Jason Robins revealed that the company has no immediate plans to enter the region, either organically or through M&A. “If we did [enter the market], it would be through M&A,” Robins clarified, marking a strategic shift for the company that was previously among the 130 operators showing interest in the Brazilian market following regulatory approvals in December 2022.

For Entain, Brazil is already a crucial part of its growth strategy. The company’s Q2 results showed a significant 48% year-on-year increase in net gaming revenue in Brazil, following a 9% rise in Q1. The company expects this upward trend to continue into the second half of the year as the legal market in Brazil becomes more established. Sameer Deen, Entain’s Chief Commercial Officer and President, emphasized the importance of Brazil in the company’s plans, stating, “Winning in Brazil was necessary to drive organic growth going forward.” Moreover, Entain has doubled its localization teams to strengthen its competitive edge in markets like Brazil. Chief Product Officer Satty Bhens mentioned during the H1 earnings call that these efforts are part of a broader strategy to dominate the market.

Rush Street Interactive is another company that is expanding in Latin America, albeit with a more cautious approach toward Brazil. The company reported a remarkable 72.4% year-on-year revenue growth in LatAm, with monthly active users up 72% to 224,000. Despite these successes, CEO Richard Schwartz indicated that the company is not in a hurry to enter Brazil, though it remains a key part of their future plans. “Brazil is a large and exciting market,” Schwartz commented during the earnings call. “There’s lots of moving parts there. It’s very important that we sort of remain disciplined and more thoughtful about how we approach the market.”

Meanwhile, Betsson has already achieved record results in the LatAm region, with Q2 revenue rising 21.8% to €62.6 million. LatAm now accounts for 23% of Betsson’s total Q2 revenue, with significant contributions from Argentina and Colombia. However, Betsson’s President and CEO Pontus Lindwall remained tight-lipped about the company’s specific plans for Brazil, even as the country gears up for a legal market launch on January 1, 2025. Lindwall did express enthusiasm for the region, saying, “I think we have conveyed to the market our ambitions for that very large opportunity and that ambition remains. So, we will put a lot of efforts to grow there.”

MGM Resorts International Interactive also hinted at its ambitions in the LatAm market, specifically through its BetMGM brand, which is operated by LeoVegas outside the U.S. Gary Fritz, President of MGM Resorts International Interactive, revealed during the company’s Q2 earnings call that a LatAm launch is imminent. “We have already launched the brand in the United Kingdom and the Netherlands, with great early results, and we plan soon to enter Latin America,” Fritz stated.

Not all companies are faring as well with Brazil’s regulatory delays, however. Kambi Group, which recently withdrew its 2027 revenue and earnings targets due to these delays, reiterated in its Q2 report that Brazil’s slow regulatory progress is affecting its revenue. Nonetheless, Kambi remains optimistic, expecting to “gradually gain market share” in the country. The company has continued to make strategic moves across LatAm, including expanding its partnership with Rei do Pitaco’s online sportsbook in Brazil and launching online in Peru with Betwarrior during the quarter.

Finally, OpenBet, which is currently up for sale, sees Brazil as a key opportunity in the near term. OpenBet CEO Jordan Levin highlighted the platform’s focus on Brazil’s soon-to-be-regulated sports betting market, stating, “OpenBet is focused on pursuing opportunities with the launch of Brazil’s newly regulated sports betting marketplace, which is anticipated to become one of the largest in the world.”

As Brazil inches closer to legalizing and regulating its gambling market, the stakes are high for these industry giants. Their strategic moves, or lack thereof, in this emerging market will likely shape the competitive landscape in Latin America for years to come.

By fLEXI tEAM