Valentyn Kyrylenko, VP of Business Development at Betinvest, discusses the huge potential of sports betting in Brazil, which of Peru and Brazil is better prepared to take the next steps towards regulation, and why betting operators need to be aware of the key betting habits across LATAM, where the average stake “totally differs” from Europe.
SBC: You said in a recent interview that Brazil accounts for 40% of the gross win in LATAM for land-based betting; what has your research told you about key betting habits that operators entering the online market should be aware of?
VK: This market has a big land-based network. It’s interesting to note that having large betting shops isn’t a must. It’s much more important to have good equipment – TV screens, monitors, etc.
In terms of revenue, European suppliers and operators need to be prepared for the fact that the average stake in LATAM countries totally differs from the European average: it’s only around $1.
However, people love sport and gambling so there are a lot of these kinds of bets. Since the population of Brazil is comparable to a huge portion of Europe, there’s huge potential, even with lower stakes.
Another thing to consider is that the mobile market is growing. To be competitive, every operator will need to provide their players with fast, user-friendly mobile versions or applications.
SBC: Brazil comes out on top in LATAM for mobile connections, percentage of smartphones and 4G connections; is Betinvest ready to engage in the inevitable battle for online/mobile market share in the country?
VK: Betinvest products are fully up to date with the latest mobile-first trends. When developing our products, we always keep their efficiency in mind.
Our new platform is light on loading and has both a mobile version and an app, while our sportsbook can be integrated into any of our clients’ platforms using iFrame and the desktop version automatically scales down for mobile devices.
This means that we don’t need to adapt our existing products or develop new ones: we’re ready to start working in this region.
SBC: Assuming sports betting legislation is passed sooner rather than later, how quickly can you get your ‘plug-and-play’ Sportsbook iFrame solution up and running to meet new regulations? Why is it a good fit for operators in Brazil?
VK: Including customisation, our solution can be fully operational in just two weeks. It’s ready to go and will work within our clients’ platforms. All the relevant sports and markets are already in our sportsbook, so if a LATAM operator decides to launch or develop a sports betting business, we can integrate all the data, tools and systems for them in two weeks.
Anyone looking to get an advanced sportsbook in a short space of time can contact us and we’ll help them to get their business up and running.
During the Brazilian Gaming Congress, we made it a priority to ensure that our sportsbook iFrame fully meets the market’s requirements and reflects the emerging trends in the region.
SBC: Peru is another predominantly land-based gambling market; what do you expect to see from Peruvian legislation? And why might this be different to Brazil?
VK: At this stage, Peruvian regulators are actually better prepared to make the next steps in developing the market than Brazilian regulators are. They’re doing their best to make Peru into a major LATAM gambling hub. Nonetheless, they’re keeping an eye on Brazil to see what the region’s next steps will be.
The second main difference between Peru and Brazil is the tax climate. At the moment, operators are required to pay high taxes. There are active debates about what should be subject to tax in the industry. Some would say that almost everything related to gambling should be taxed – from total revenue right down to each individual bet.
SBC: And finally, which country is better placed to be LATAM’s next Colombia – Brazil or Peru?
VK: Brazil, without a doubt. It’s a big country which has a strong economy, a well-developed infrastructure and a population obsessed with sport and gambling.