Guide on How to Start a Sportsbook in Brazil in 2024

The Brazilian betting industry is a largely untapped market. While the future of this jurisdiction is on an upward trajectory due to the recent changes in the gambling law, it is not so straightforward to set up a Brazil betting sportsbook. This guide will cover the essentials that will help you begin your operations.

• The landscape and the current size of the market.
• Steps to follow when setting up a Brazil bets operation.
• Top priorities for sports betting in Brazil.

Landscape of the Brazilian Betting Market

The Brazilian betting market was under heavy bans until new regulations in 2023. The introduced law gave operators access to 100 million age-appropriate sports-loving fans. Thus, the iGaming landscape in this area is gathering steam as at least 50% of Brazilians claim to have partaken in sports betting activities. 

In its new gambling laws, the regulator stipulates that operators in Brazil must carry out fast and accurate KYC (Know Your Customer) checks on users. This includes restricting users who are banned from gambling. They must also have a physical location in Brazil for their online betting platform. 

Sportsbook Brazil operators are subject to a 16% tax on gross earnings. Part of the tax is used for public health and anti-match fixing causes. Operators are also required to run the identity of new users against the CPF database, which shows the tax information of Brazil’s citizens and foreign nationals. This is supposed to help the government stop fraud and impersonation in the betting industry as well as keep tabs on the betting industry to monitor trends and make the right decisions to keep players and operators safe.

Steps to Start a Sports Betting Business in Brazil

In order to navigate this new market it is important to learn how to become a bookie in Brazil. LATAM, and Brazil in particular, is a unique gaming market with its peculiarities and nuances. Therefore, it is not the best idea to copy and paste strategies that work in other markets. Here are the steps you should follow to start your sports betting business in Brazil specifically.

Business Plan and Strategy

First, you need a solid business plan and strategy that includes important details about your sportsbook. What market demography do you plan to target? Custom mobile app development vs using a white-label product. You must also include the payment processors to incorporate, betting markets, bonuses, and other crucial details. One good way to design your business plan is to study your competition. Look at where they excel and where they fall behind. This will help you to figure out a unique approach to enter the market and differentiate yourself.

Legal Considerations

This is arguably the most important step in sports betting software development for the Brazilian market. You must understand the legal framework, tax requirements, location requirements, and responsible gaming policies. Most of what is now available to operators was previously known as the “grey area.” It was termed so because of the legal uncertainty surrounding online and Brazilian land-based sports betting. Understanding the legal framework allows you to make legal plans. It’d be devastating if your new sportsbook were immediately shut down for being illegal, wouldn’t it?

Requirements 

The requirements for your online sportsbook are the crucial details that will influence your betting software development. These details determine how you will serve your users, and they include:

• Sports Markets: The sports markets you add to your sportsbook will determine how fast you grow. Brazilian bettors enjoy popular sports like football, basketball, and tennis. But incorporating them into your software is barely the beginning of your decision process. You must also decide what tournaments and leagues to include on your platform. The right blend of very popular and less mainstream sports will give you an edge over the competition. 

• Bonuses: Bonuses are the best strategy for creating initial buzz for your new sportsbook. Entice new users with juicy welcome bonuses and fair wagering requirements. You must also decide what additional bonuses to include, such as reload, cashback, deposit, and referral bonuses. These will increase your betting app engagement. 

• Payment Methods: Depositing and withdrawing funds is important when operating a bookie. Ensure that you have the right payment processors on your platform. Examine the payment processing times and fees to choose options that benefit your users. You can check the processors your competition uses for ideas on the best payment partners. 

Launch and Brand Consolidation

Launching is the final step in realizing your dream. You should handle this carefully, as it can make or break your sportsbook. Double-check the website domain, payments systems, and other functions to see if they work. Drum up fanfare and hype for your launch while highlighting your bonuses and other perks.

If you have betting markets the competition does not; do not be shy about letting bettors know. These will give you the chance to capture a large number of new users on launch day. Your brand should be clearly defined from your competitors and you must align all your products using the same branding.

Top Priorities for Brazilian Sports Betting Operators

After learning how to prepare for sports betting app development, the next stage is the top priority you should consider. These are the most important factors that guide the decisions of old and new betting operators. The Brazilian market is a new frontier, and you will need to consider the following to operate a successful sportsbook.

Betting Laws and Regulations 

The regulations surrounding the Brazilian industry are relatively new and still evolving. You must keep yourself updated on all new chances and make the necessary compliant adjustments. Setting up a compliance department within your sportsbook is standard practice if you want to stay on the right side of the law. 

The important thing is to keep your procedures up to code and follow all standard practices. Ensure that your AML (Anti-Money Laundry), KYC (Know Your Customer), and claim management processes are updated regularly. User personal and financial data protection is also very important. You must use the best encryption technologies and safety standards to handle user data.

Localization of Services 

You must adjust your services to suit the Brazilian market. Operators cannot just bring systems they used in other markets to Brazil due to the peculiarities in the frontier markets. Conduct surveys on user experience, language, and other local preferences. This will allow you to create a localized experience that Brazilian bettors can relate to. 

This is another area where you can look at your competition for inspiration. If you want to beat them, you must match and exceed what they do best while also improving on what they do not do well. You should also consider setting up an office as mandated by law. Research the best jurisdictions in which to site your offices in Brazil.

Customer Service

Customer service is a priority for all operators. Customers want to know they can receive quick responses when they have problems on your platform. There is steep competition for attention as many foreign and local operators fight for market share. Poor customer support is the quickest way to lose users. You should also consider offering customer service in multiple languages to help non-English bettors.

Live chat is another option for operators who want to respond quickly to their users. It is powerful when partnered with a robust FAQ (Frequently Asked Questions) section. Researching the common communication methods Brazilian bettors use when making complaints will help you to figure out the channels to prioritize. 

24/7 customer service is another avenue that you should explore. Being available to users around the clock allows them to trust your services. 

Payment Methods

Use simplified transaction processes for deposits and withdrawals. This is a big priority for operators because money is the industry’s most important asset. Partnering with the right payment partners will allow you to offer acceptable services to users.

Ensure that you use localized players that can seamlessly process transactions within Brazil. You can also opt for international partners with a significant presence in Brazil. 

The important thing to consider when choosing are the fees and processing time. Choose the lowest times and little to no fees for the benefit of your users. You should also ensure that your payment processor can handle multiple currencies. 

Consumer Protection Agencies

There are over 800 consumer protection agencies operating in Brazil. You should pay attention to them as they lay down the rules for the treatment of customers. These agencies are active and fall under the umbrella of the PROCON-SP. 

You should also ensure that your operations align with Consumer Institute of Consumer Defence (IDEC) stipulations depending on your jurisdiction. Staying on the right side of these agencies will allow you to prevent any future clashes that could halt or terminate your operations. 

Customer Feedback (ReclameAQUI)

ReclameAQUI is the largest consumer complaint website in Brazil. It has over 18 million registered users complaining about different products and services. You can use this platform to gain insight into the problems users face with you or your competitors. Learning what they say is important because it will help you to implement the best solutions quickly. If there are any complaints about your service, ensure that you address these issues before they begin to cause customer churn. 

Future of Sports Betting in Brazil

Sports betting keeps evolving as new technologies are introduced to the industry. Within the next few years, the industry will grow and accommodate new technologies that will change how players place bets. 

The market in Brazil is still relatively untapped, which opens up an avenue for new players to compete for market share. The regulations surrounding online sports betting will also change to cover any new developments that disrupt the market, as they did in 2023.

Operators should focus on strategies that help them acquire and keep new users. As more bettors come online, they look for the best places to put their money and gamble. One of the factors that will shape the future of betting in Brazil is the cryptocurrency boom, allowing players to make fast and seamless transactions through the blockchain.

User interfaces will also become simpler with the rising popularity of mobile betting apps over websites. Mobile users are the largest market of players in Brazil so building your services to cater to this market is a wise strategy if you hope to get a large user base. 

All in all, the future of sports betting in Brazil is not set in stone. It will change and evolve based on numerous factors within the larger betting landscape. 

It’s Go Time

Now that you have completed this guide, you have all the tools to launch your sportsbook in Brazil. Paying attention to any changing regulations while making your plans is key. You should also partner with a local expert on sports betting regulation in Brazil to guide your efforts. 

Do not be shy about watching your competition. Learn from their mistakes and copy their successes. Look for ways to improve their services and attract new users to your platform. Register your betting operation with the right agencies and pay all taxes when due. The Brazilian market has a lot of untapped potential. Launch your sportsbook and stake your claim!

In case you need some further information on how to start a sports betting business in Brazil, reach out to us.