LatAm Market Insights: Gambling Giants Gear Up for Brazil and Beyond

The gambling industry's Q2 results season has highlighted the strategic maneuvers and performance of key players in the Latin American market, with a particular focus on Brazil. As the region's potential continues to attract attention, major companies are positioning themselves to capitalize on the opportunities ahead.

Flutter Targets Top Spot in Brazil as Betfair Files Application

Flutter Entertainment is setting its sights on becoming a dominant force in Brazil's soon-to-be-licensed betting market, according to CEO Peter Jackson, who made the company's ambitions clear during its Q2 earnings report on 13 August. When asked about potential mergers and acquisitions in the region, Jackson noted that Flutter had not yet finalized its plans. "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.

In terms of Q2 performance, Flutter reported an 11% growth in Brazil on a constant currency basis. The company’s Betfair brand submitted its Brazilian betting license application on the same day as its earnings release. "I think we’re reasonably well placed with our Betfair brand in that market," Jackson told analysts, adding, "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."

A July survey conducted by ENV Media reinforced Betfair's strong market presence, naming it the most recognizable betting brand in Brazil, with 9.52% of respondents recognizing and trusting the brand, slightly ahead of Betano, which garnered 9.41%.

DraftKings Stays Out of LatAm for Now

While many in the industry are keenly eyeing Latin America, particularly Brazil, US giant DraftKings is not planning to expand into the region anytime soon. CEO Jason Robins responded to analysts' questions by stating there were no immediate plans to enter the region, either organically or through mergers and acquisitions. However, he did suggest that if the company were to move into LatAm, it would likely do so via M&A.

This marks a shift in strategy for DraftKings, which was among the 130 operators initially expressing interest in the Brazilian market following the final approval of gambling regulation by Brazil's Chamber of Deputies on 21 December.

Entain Prioritizes Brazil in Its Growth Strategy

For Entain, Brazil is pivotal to its international growth strategy. The company's performance in global markets, including Brazil, contributed to a 6% year-on-year increase in net gaming revenue (NGR) during H1. Sameer Deen, Entain's Chief Commercial Officer and President, emphasized that success in Brazil is crucial for driving future organic growth.

Entain reported a 48% year-on-year surge in NGR in Brazil during Q2, building on a 9% increase in Q1. The company expects this upward trend to continue in H2 as the legal market in Brazil comes closer to fruition. First-time depositors (FTDs) in Brazil surpassed those seen in 2022 and 2023, which the company attributed to more efficient marketing spending and an enhanced user experience on its Sportingbet platform. Entain filed its betting license application in Brazil in July.

To bolster its competitive edge in markets like Brazil, Entain has doubled its localization teams, Chief Product Officer Satty Bhens revealed during the H1 earnings call.

Rush Street Interactive Takes a Cautious Approach to Brazil

Rush Street Interactive (RSI) saw a significant revenue increase in LatAm during Q2, with earnings rocketing 72.4% year-on-year to $31.9 million. Monthly active users in the region grew by 72% to 224,000. The company continues to expand its LatAm presence, recently launching its RushBet brand for iGaming and online sports betting in Peru in July as part of its "strategic advancement" into the region.

Despite this success, RSI CEO Richard Schwartz indicated that the company is not in a hurry to enter the Brazilian market, though it still intends to launch there. "Brazil is a large and exciting market," Schwartz said 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."

Betsson Posts Record Results in LatAm

Betsson reported a record-breaking Q2 in LatAm, with revenue rising by 21.8% to €62.6 million. The LatAm region accounted for 23% of Betsson's total Q2 revenue, driven by growth in Argentina and Colombia.

Ahead of the legal market launch in Brazil, Betsson secured licenses for its Betsafe and Betsson brands, as well as its subsidiary Inkabet. During the post-Q2 earnings call, Betsson President and CEO Pontus Lindwall refrained from divulging specific details about the company's plans for Brazil, but he did express enthusiasm for the region as a whole. "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," Lindwall stated.

MGM Hints at BetMGM LatAm Expansion

MGM Resorts International Interactive has hinted at plans to bring its BetMGM brand, operated by LeoVegas outside the US, to Latin America. During the company’s Q2 earnings call, President Gary Fritz mentioned that a LatAm launch was imminent. "The third pillar of our strategy is to target organic growth in attractive regulated markets with the BetMGM brand. 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 revealed.

Kambi Affected by Brazil’s Regulatory Delays

Kambi Group has been impacted by delays in Brazil’s regulatory process, which led the company to withdraw its 2027 revenue and earnings targets in July. This was again reflected in its Q2 report, where Kambi noted that delayed regulation in Brazil would affect its revenue, although the company still expects to "gradually gain market share" in the country.

Despite the slower-than-expected regulation, Kambi has continued to secure deals across LatAm. In Brazil, Kambi expanded its December 2022 partnership with Rei do Pitaco in June to power the operator's online sportsbook. Additionally, Kambi’s esports division, Abios, announced an agreement to offer Rei do Pitaco’s fantasy soccer product. Kambi also launched online in Peru during the quarter with Betwarrior, while another partner, BetPlay, expanded into Ecuador.

OpenBet Eyes Brazil as It Seeks Buyer

Endeavor, the parent company of OpenBet, revealed during its Q2 earnings announcement that it is seeking a buyer for its OpenBet and IMG Arena businesses. Despite this, OpenBet CEO Jordan Levin indicated that the company is looking to Brazil for near-term opportunities. "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," Levin said.

By fLEXI tEAM