Key Takeaways from the SBC Summit, Rio
In the heart of Rio de Janeiro, where the vibrant culture meets the burgeoning iGaming industry, the recent SBC Summit provided an invaluable platform for industry leaders, innovators, and enthusiasts to converge. Among them stood our CEO, Assaf Dor and CRO Josh Swerdlow as they ventured out to discover and learn new insights from this emerging region and chart a course for success to support iGaming brands entering the burgeoning LATAM market.
Embracing local marketing and culture
The key to unlocking the true potential of the LATAM market is gaining a better understanding of Brazilian culture and local consumer preferences. It was apparent on arrival that this market is still relatively immature but has an openness to gain guidance and build partnerships with external parties such as independent iGaming consultants, lawyers, accountants, agencies and even local payment providers, all seeking to invest early into establishing partnerships in this growing market.
Many delegates seemed eager to gain early insight as to how the country may develop and grow, especially given the diversity of delegates we met at this event. Operators where seeking to carve out a niche and capture the attention of Brazilian sports betting enthusiasts was evident in the diversity of delegates we met during the course of the event.
There is no doubt that the Brazilian market demands authenticity and resonance, necessitating a nuanced approach to marketing and branding efforts.
“The entire LATAM market presents a unique opportunity for iGaming brands,” said Dor, “However, success hinges on a deep understanding of local culture and preferences. At Cellxpert, we recognize the importance of localization and empower brands to navigate this complex terrain seamlessly using our technology to support localisation of marketing and tracking compensation models at a per geo level.“
LATAM: A booming market for iGaming Operator Growth
The landscape of iGaming in LATAM is fast undergoing a seismic shift, from once emerging to being propelled into a fruitful opportunity for growth by a perfect storm of factors. With a population of over 212 million and a growing digital infrastructure, Brazil stands as a prime market for iGaming brands to focus their expansion. In the past 18 months, statistics have illustrated the exponential growth of the industry, with projections indicating a market worth over $2 billion by 2024. (Source: Statista).
In July 2023, Brazil passed provisional measures legalizing and regulating sports betting. This marks a significant turning point for the country as the sports betting market could be worth over $1 billion dollars. However, the LATAM region is still quite fragmented, with regulations varying by country. This makes it somewhat difficult to track individual brand launches across the entire region from a single source.
A number of prospects we met at this event quoted that they believed roughly around 100 new brands entering the market each month but this is unverified. Time will tell how many of these brands will succeed to establish themselves with market penetration and how many will tap out before further regulation is revealed.
With an estimated 63%* of the population having access to mobile technology, Brazil also presents a perfect environment for mobile-based iGaming, a rapidly growing segment of the industry. (Source: Slotegrator).
Social media provides instant access to local audiences
Affiliate marketing, a cornerstone of customer acquisition in the iGaming industry, takes on a unique flavor in Brazil. While traditional methods such as SEO and PPC hold the player acquisition volume sway in established markets, the Brazilian landscape currently seems dominated by social media influencers. These influencers wield local marketing influence over their customer behavior, some sharing that they have already amassed 100 Million followers and sending over 1000 FTD’s per month – making them indispensable allies for new brands vying for early market share.
“The summit shed light on the complex dynamics of Brazil’s burgeoning iGaming market,” says Josh Swedlow, CRO of Cellxpert. “Our experiences at the event reinforced the critical role of affiliate marketing in customer acquisition, with a notable emphasis on the influence of social media. It’s clear that established operators are leveraging social influencers effectively. However, there’s a growing recognition of the need to not only diversify traffic sources but also to refine how we measure success. Moving beyond the initial volume of FTDs to focus on the quality and sustainability of player engagement, optimizing towards NGR becomes crucial. This strategy ensures long-term profitability and compliance with responsible gaming practices. At Cellxpert, we’re committed to providing our partners with the tools needed to achieve this balance, offering a comprehensive dashboard that supports nuanced performance analysis and optimization across all traffic sources.”
Cellxpert therefore made for an interesting proposition for delegates to explore at this event. As the market matures, operators will need to take a multi-channel acquisition approach to effectively grow and reach the massive audience base that is potentially accessible within this region.
Understanding local market regulation and compliance
Navigating the unfolding regulatory framework in Brazil (and other LATAM countries) now also poses a formidable challenge for iGaming operators.
With the current iGaming legislation still in flux, Brazil has only recently opened up to regulation for sports betting in 2023. As such compliance across LATAM becomes a moving target, necessitating agile solutions to ensure adherence to regulatory standards. Many delegates were unsure of what the actual process should be around single and multi brand license applications.
The general understanding in accordance with the Brazilian government website detailing the application process and what is required – is that brands interested in operating in Brazil’s iGaming market, must first establish a legal entity within the country. This could involve foreign companies needing to set up a subsidiary or a local branch. Once the legal entity is established, the brand can submit a formal application for an iGaming license to the Brazilian Ministry of Finance. Licensees are also required to establish a 24/7 customer service center in Brazil that provides assistance in Portuguese.
The application process is detailed and requires various documents and information about the company, its operations, responsible gambling practices, and financial stability. Applicants must also ensure they comply with all the regulations outlined in the “Ordinance 1,330/2023”. This document, which has to be downloaded as a PDF due to The Brazilian Senate archiving legislation after it’s been passed, details the general conditions for operating sports betting in Brazil, including things like responsible gambling measures, advertising restrictions, consumer protection guidelines and data security protocols.
Cellxpert’s intuitive affiliate tracking and program management technology can empower new brands to navigate this regulatory maze with confidence. Our compliance and payment modules as well as enhanced partner management tools help affiliate managers with localized management and onboarding for new partners into the affiliate program mitigating potential non compliance risk.
“As the regulatory landscape evolves, technology becomes a cornerstone of compliance,” said Assaf. “At Cellxpert, we are committed to equipping brands with the tools they need to navigate regulatory challenges seamlessly. Our platform empowers brands to adapt and thrive in a rapidly evolving regulatory environment.”
LATAM remains ripe for further growth and exploration
In conclusion, the SBC Summit in Rio served as a crucible of innovation and insight for Cellxpert and other industry stakeholders. As the Brazilian iGaming market continues to flourish, strategic partnerships, localized strategies, and cutting-edge technologies will be the keys to success. With a finger on the pulse of industry trends, Cellxpert remains poised to lead the charge into this exciting frontier.
As Assaf summarized, “The SBC Summit reinforced the immense potential of the Brazilian iGaming market. By embracing localization, forging strategic partnerships, and leveraging technology, brands can unlock unprecedented opportunities for growth and success.”
In the wake of the SBC Summit, one thing is abundantly clear, the Brazilian iGaming market is ripe for exploration, and Cellxpert stands ready to guide brands on this exhilarating journey.
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