Three pillars of success in the Brazilian iGaming market

Carla Dualib, Regional Business Development Manager at SOFTSWISS, discusses key strategies for successfully entering the Brazilian gaming market.

Opinion.- The process of Brazilian market regulation has finally begun. At least it has changed from blind darkness to a kind of certainty. Now, We can finally find out how global iGaming trends are reflected and reflected on a local level. This understanding will help operators successfully enter the market once license applications are received.

As regulatory changes shake up the Brazilian gambling landscape, stakeholders are closely watching this promising market. They are willing to adapt to local regulations, whether relying on legislation or user behavior. This adjustment depends on taking into account three fundamental pillars: Data security, payment security and mobile flexibility.

In this second article in a series of monthly columns from SOFTSWISS experts focused on Latin American market analysis, Carla DualibRegional Business Development Manager at SOFTSWISS, breaks down these crucial factors to understand their impact on creating a successful business.

Data Security: Adapting to the High-Risk Landscape

According to Forbes, Brazil is a leader in the Latin American cyber threat landscapeIt is the second most vulnerable country in the world to cyberattacks. More than 100 million attempts were registered in 2022 alone, causing major concern among companies and gamers alike. In particular, the Globo study found that 54.2 percent of players prioritize security and a secure connection when choosing online casinos/betting shops.

The Brazilian government has already taken solid steps in the cyber fight.

In December 2023, President Lula da Silva issued a decree Establishing the National Cybersecurity Policy and the creation of the National Cybersecurity Board.

All of this makes it clear that all gambling companies must adhere to the highest security standards for data protection. To ensure a secure gaming environment, they must provide effective data collection, encryption and storage tools. This in turn is only possible with systematically carried out security audits.

“According to Forbes, Brazil leads the Latin American cyber threat landscape and is considered the second most vulnerable country in the world to cyberattacks.”

Carla Dualib, regional business development manager at SOFTSWISS.

Payment Security: Respond to user preferences

According to the Globo survey, speed and trust are the most important criteria for players choosing a payment system. Therefore, iGaming operators’ platforms must adopt the primary payment methods that Brazilians are used to.

In addition to traditional banking, there are four most popular payment methods in Brazil:

  1. Pix. Developed in 2020 by the Central Bank of Brazil, Pix is ​​free, fast, secure and therefore the most widespread among gamers. In general, Pix is ​​used by over 140 million people and 3 billion transactions are carried out every month. The system is integrated into over 90 percent of Brazilian websites.
  2. E-wallets. They have contributed significantly to the growth of the iGaming audience and are now the preferred payment method for online gambling and betting. Pay4Fun and Evino are the most commonly used services.
  3. Boleto. Launched in 1993, this ticket-based payment system was the first alternative to credit cards. After the launch of Pix, many users lost, but 17 percent of the population still uses this system.
  4. Crypto. According to Chainalysis, Latin America is the seventh crypto market in the world. A study conducted by SOFTSWISS shows that crypto betting in the five largest Latin American countries grew by more than 14 percent in 2023 compared to 2022. The company is capitalizing on the crypto trend and expanding its iGaming solutions to include crypto-centric features such as in-game currency conversion. We are sure that crypto betting will increase across the region, including Brazil, fueled by the legal approval of cryptocurrencies in June 2023.

When integrating a variety of payment options Operators must carefully select gambling software providers. This ensures sufficient security and promotes player trust and safety on any platform.

Mobile Flexibility: Mastering the Habit of Being on the Go

To meet the needs of Brazilian players, gambling operators should also understand local gaming habits, which are shaped by two main factors. First, Advanced mobile penetration in Brazil offers the fastest internet and even 5G connectivity in several areas.

Secondly, Most players live in metropolitan areas and have to travel long distances to and from work. As smartphones become companions when traveling on public transport, mobile gaming comes into play. But it comes with its peculiarities – users prefer to download apps instead of playing and playing online. They feel safer knowing that their data and money are processed within an app rather than through a browser.

Any gambling company that wants to attract Brazilian players needs to focus on providing a decent mobile experience. This involves both optimizing the gaming website and developing an independent mobile application.

“Any gaming company that wants to attract Brazilian players needs to focus on providing a decent mobile experience.”

Carla Dualib, regional business development manager at SOFTSWISS.

looking ahead

Industry optimism is driving the development of an infrastructure that promotes interconnectedness among companies. One example is the upcoming SBC Summit Rio, scheduled to take place March 5-7. It is the first global LatAm trade fair after the passage of the new Brazilian legislative initiatives.

Therefore, many large companies are pinning their hopes on this event. It will provide insight into how local and international players view the development of the industry.

As a leading iGaming technology company, SOFTSWISS will participate in the SBC Summit Rio and share its 15 years of expertise and innovative vision with visitors and future partners.

See also: How not to get burned in the hot Brazilian gambling market

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