The FIFA World Cup will return to Mexico City’s iconic Estadio Azteca in June, marking a significant moment as it hosts the tournament for the first time in 40 years. This historic venue, where Pele led Brazil to victory in 1970 and Diego Maradona showcased his legendary skills in 1986, holds a sacred place in Latin American football culture. The opening match in 2026 will feature Mexico facing South Africa and will also symbolize the dawn of a new chapter for betting in Latin America. For the first time, Brazilian punters will be able to place legal bets on a World Cup game thanks to the launch of Brazil’s regulated betting market in 2025. As Brazil's national team, the Seleção, aims for its sixth World Cup title, a wave of support from local bettors can be expected, alongside established betting markets in Mexico and Colombia.
In this competitive landscape, operators are vying for an edge to ensure a prosperous Mundial year. In Brazil, new sportsbooks are focusing on technology, trading sophistication, and innovative products, rather than solely relying on marketing expenditure. Leading the charge are major Brazilian operators like Superbet, KTO, and Stake, all leveraging technology from Kambi, a firm that handles over half of its wagers from the Latin American market. KTO and Stake utilize Kambi’s Turnkey Sportsbook solution, while Superbet has introduced its Odds Feed+ product, which offers comprehensive trading and pricing services.
According to Kambi’s head of sales in Latin America, Mateo Lenoble, success in Brazil hinges on combining advanced technology with a nuanced understanding of local betting practices. “One of the interesting things about Brazilian bettors is that they love new stuff – things that are new or different,” Lenoble remarked, noting that while cash-out features and early payouts gained popularity, the recent introduction of Kambi’s in-house bet builder has attracted attention.
Aspiring entrants to the burgeoning Brazilian market must avoid the misconception of uniformity across Latin America. For instance, while football constitutes nearly 90% of betting in Brazil, other sports, such as US leagues, have gained traction in Mexico and Central American countries. Major League Baseball, while less popular in Brazil, enjoys a following in the Dominican Republic. Brazil’s legal betting market achieved a remarkable $7 billion in gross gaming revenue its first year, but it is not the only player in the region. Kambi has established its credibility in Latin America over the years, notably with its longstanding partnership with Colombian leader BetPlay. Kambi emphasizes the importance of tailoring offerings to specific markets, as Lenoble explains.
“It is not just about the language,” he said. “Things like pricing, trading, payments, and the wider offer must be pitched at that particular market. Those companies looking across numerous markets must also respect regulatory compliance.” He added that while Brazil and Mexico are significant due to their size and culture, Colombia remains a critical market, where Kambi collaborates with major operators like BetPlay and RushBet to maintain its leading position.
In Brazil, having the right technological arsenal is crucial, with many operators realizing that brand recognition or mere marketing is insufficient for success. “You need to have the technology and the product in order to succeed in this business,” Lenoble stated. Some have entered the market thinking they could treat it like a straightforward casino venture. The sports betting sector is unique, requiring operators to remain vigilant or collaborate with specialists.
Lenoble believes that many operators are just beginning to understand the significance of trading flexibility for long-term success. He expressed concern for operators unable to adjust their odds due to inadequate third-party technology, emphasizing that the ability to dynamically change odds and margins is essential.
Looking ahead, Kambi envisions a promising future for both Brazil and the broader region. With its prominent role as a technology provider, Kambi closely monitors regulatory changes and market trends. Early success in Brazil has been scrutinized by critics worried about increasing gambling issues. President Luiz Inácio Lula da Silva has even called for a ban. However, Lenoble believes any regulatory changes will likely just adjust current rules, such as the planned increase in the gaming tax from 12% to 14%. “I don’t see that there is going to be a major shift in Brazil,” he said. “The regulations for the legalized market have been in place for some years now, and I think betting is here to stay.” He pointed out that Colombia has also experienced regulatory shifts, but overall, there’s an acknowledgment of the importance of supporting the industry.
This confidence in the Brazilian betting sector's potential is strengthened by the still-present opportunities for growth. While sportsbooks in other Latin American markets report margins of around 13%, many Brazilian operators currently achieve only between 6% and 7%, indicating a significant capacity for improvement as the market evolves and technology plays an increasingly pivotal role.
