Looking at the Q2 gambling results, iGB examines how LatAm’s key players fared, and what their plans are.
Flutter eyes leading position in Brazilas Betfair Files Application
Peter Jackson, Flutter’s CEO said that the company expects to lead Brazil’s licensed gambling market. The results for Q2 were released on August 13th.
Flutter has not yet finalised plans in the area for M&A, he replied when asked.
He said: “We’ll decide what to do in Brazil, and when we make a final decision, we will let the market hear from us if we have anything to say.”
Constant currency growth in Brazil for Q2 was 11 %. The day after its earnings, Betfair submitted its Brazil betting license application.
Jackson, an analystt, said: “I believe we are reasonably well-positioned with our Betfair Brand in that market.” Jackson told analystst: “We also run PokerStars in that market.
We are all ambitious. “We like podium positions.” “I would love to be in the gold medal position.”
In a July ENV Media survey, Betfair was rated the most trusted betting brand by Brazilians, with 9.52% recognizing and trusting its brand, compared to Betano’s 9.41%.
DraftKings does not plan to include LatAm
Many in the betting industry are interested in the potential of LatAm, and Brazil specifically. However, US-based DraftKings does not expect to expand its operations into this region any time soon.
In response to questions from analysts, CEO Jason Robins stated that there was no plan to enter the area organically, or through M&A. However, he did say if it happened, they would do so via M&A.
DraftKings has changed its strategy after the final approval of gambling regulation by the Chamber of Deputies on the 21st December.
Entain’s strategy for growth is centered on Brazil
Entain’s performance in international markets including Brazil helped to drive a 6% increase in Net Gaming Revenue (NGR), year on year, during the first half of 2018. Sameer Deen, the chief commercial officer and president of Entain, told analysts that winning in Brazil is necessary for organic growth to continue.
In Q2, its net gaming revenues in Brazil grew by 48% compared to Q1, after an increase of 9% in Q1. It said that it expected this growth to continue into H2 with the approaching legal market.
The trend of first-time depositors in Brazil was higher than that seen between 2022 and 2023. It credited an increased efficiency in marketing and a better experience for betting customers using the Sportingbet name. Entain submitted its Brazilian betting license application in July.
Chief product officer Satty Bhens stated during the H1 results call that localisation teams had been doubled in order to increase Entain’s competitiveness in markets such as Brazil.
Rush Street Interactive is not hurrying into Brazil
Rush Street Interactive reported Q2 earnings, and one of the highlights was a 72.4% increase in revenue from LatAm to $31.9m. The number of monthly active users increased by 72%, to 224,000.
As part of its “strategic advance” in the region, the company will launch igaming Peru and online sports betting under its RushBet name.
Richard Schwartz, CEO of Rush Street Interactive, said that despite the success the company has had elsewhere in LatAm the company will not rush to enter the Brazilian market. However, it does plan to launch on the Brazilian Market.
Schwartz stated on the earnings conference that Brazil is an exciting and large market. There are many moving parts in Brazil. “It’s important to remain more disciplined in our approach and be more mindful about the market.”
Betsson records record in LatAm
Betsson has made several moves ahead of the results season. It secured a license for both its Betsafe brand and Betsson, along with its subsidiary Inkabet.
Betsson reported a record-breaking Q2 LatAm quarter, with revenue rising by 21.8% and reaching EUR62.6m. Betsson’s Q2 total revenue was 23% from the LatAm region. The company attributed the growth to Argentina and Colombia.
On Betsson’s post-Q2 earnings conference call, Betsson President and CEO Pontus Linwall kept Brazil a secret, declining to provide any details on how the company is preparing for the launch of its legal Brazilian market on 1 January 2025.
Lindwall spoke of Betsson plans for the entire region, however, and said: “I believe we have communicated our ambitions to the market, which remain the same.” We will therefore put in a great deal of effort to expand there.
MGM Teases BetMGM Latin America Ambitions
MGM Resorts International Interactive hinted that it plans to launch BetMGM, a brand operated by LeoVegas, outside the US in Latin America. Gary Fritz, the president of MGM Resorts International Interactive said that a LatAm brand launch is imminent in the Q2 earnings conference.
The BetMGM brand is the third pillar in our strategy to achieve organic growth. The brand has already been launched in the United Kingdom, the Netherlands and with excellent results. We plan to soon enter Latin America.
Still affected by Brazil delays
Kambi Group, in July announced that it would withdraw its revenue and earning targets for 2027 due to regulatory delays on some markets. This was also a factor when the company released its second quarter report.
According to the report, Kambi expects its revenue in Brazil will be negatively affected due to delayed regulation. However, it does still plan on “gradually gaining market share”.
The company continues to sign deals in LatAm despite the fact that regulations are not moving as fast as expected.
Kambi’s esports subsidiary Abios, which operates in Brazil’s country of origin, announced a deal to provide the operator’s Fantasy Soccer product. The partnership was extended to December 2022.
Kambi launched its online service in Peru with Betwarrior during the third quarter, and BetPlay, another partner operating in Ecuador.
OpenBet focuses on Brazil following its sale
Endeavor announced its earnings for Q2 and revealed that it is in the process to find a buyer of its OpenBet business as well as its IMG Arena.
OpenBet’s CEO Jordan Levin responded by saying that the platform is looking at Brazil for an immediate opportunity.
He said: “OpenBet’s focus is on exploring opportunities in Brazil, where a newly-regulated sports betting market is expected to be one of the biggest in the world.”
