SOFTSWISS: Three pillars of success in the Brazilian igaming market
Carla Dualib, regional business development manager at SOFTSWISS, discusses key strategies to successfully enter the Brazilian gaming market.
Opinion.- The process of Brazilian market regulation finally got off the ground. At least it shifted from blind obscurity to some sort of certainty. Now, we can finally find out how global igaming trends are reflected and refracted on the local soil. This understanding will help operators successfully enter the market once licence applications are available.
With regulatory shifts shaking the Brazilian gambling landscape, stakeholders closely monitor this promising market. They are ready to adapt to local rules, whether relying on legislation or user behaviour. This adaptation hinges on considering three key pillars: data security, payment security, and mobile flexibility.
In this second article in a series of monthly columns by SOFTSWISS experts focusing on the analysis of the Latin American market, Carla Dualib, regional business development manager at SOFTSWISS, breaks down these crucial factors to understand their leverage in creating a successful business.
Data security: Adjusting to high-risk landscape
According to Forbes, Brazil leads the LatAm cyber threats landscape, ranking as the world’s second most vulnerable country to cyberattacks. In 2022 alone, there were more than 100 million recorded attempts, raising significant concerns for businesses and players alike. Notably, the Globo study revealed that 54.2 per cent of players prioritise security and a secure connection when evaluating online casino/betting house choices.
The Brazilian government has already undertaken solid steps in the cyber battle.
In December 2023, President Lula da Silva issued a Decree establishing the National Cybersecurity Policy and creating the National Cybersecurity Committee.
All these clearly indicate the imperative for all gambling businesses to comply with 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 security audits conducted systematically.
“According to Forbes, Brazil leads the LatAm cyber threats landscape, ranking as the world’s second most vulnerable country to cyberattacks.”
Carla Dualib, regional business development manager at SOFTSWISS.
Payment security: Catering to user preferences
Based on the Globo survey, speed and trust are the most essential criteria for players choosing a payment system. So, igaming operators’ platforms must embrace the primary payment methods the Brazilians got used to.
Besides traditional banking, there are four most popular payment methods in Brazil:
- Pix. Created in 2020 by the Central Bank of Brazil, Pix is free, fast, secure, and, therefore, most widely used among players. In general, Pix is used by over 140 million people, with 3 billion transactions made monthly. The system is integrated into over 90 per cent of Brazilian websites.
- E-wallets. They significantly contributed 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 widely used services.
- Boleto. This ticket-based payment system launched in 1993 was the first alternative to credit cards. It lost many users after Pix was rolled out, but 17 per cent of the population still uses this system.
- Crypto. Chainalysis states Latin America is the world’s seventh crypto market. A study made by SOFTSWISS shows that crypto betting in the five largest LatAm countries grew more than 14 per cent in 2023 compared to 2022. Capitalising on the crypto trend, the company enhances its iGaming solutions with crypto-centric features, such as In-Game Currency Conversion. We are sure that crypto bets, fueled by cryptocurrency legal approval in June 2023, will increase in the entire region, including Brazil.
When integrating a diverse range of payment options, operators must carefully select gambling software suppliers. This ensures sufficient security, fostering player confidence and peace of mind on any platform.
Mobile flexibility: Mastering on-the-go habit
To satisfy the needs of Brazilian players, gambling operators should also understand local gaming habits, which are shaped by two main factors. Firstly, the advanced mobile penetration in Brazil provides the fastest internet and even 5G connectivity in several areas.
Secondly, most players live in metropolitan areas, facing lengthy commutes to work and back home. As smartphones become companions during public transportation journeys, mobile gaming comes into play. But it comes with its peculiarities – users prefer downloading apps rather than playing and gambling online. They feel more secure knowing their data and money are processed not through a browser but within an app.
Any gambling company looking to engage Brazilian players must focus on providing a decent mobile experience. This involves both optimising the gaming website and developing a standalone mobile application.
“Any gambling company looking to engage Brazilian players must focus on providing a decent mobile experience.”
Carla Dualib, regional business development manager at SOFTSWISS.
Looking ahead
Industry optimism drives the development of infrastructure that fosters business networking. An example is the upcoming SBC Summit Rio, scheduled for 5–7 March. It’s the first global LatAm expo after adopting the new Brazilian legislative initiatives.
Therefore, many major companies are pinning their hopes on this event. It will shed light on how local and international players see the industry’s evolution.
As a leading igaming tech company, SOFTSWISS will participate in SBC Summit Rio, sharing its 15-year expertise and innovative vision with visitors and partners-to-be.
See also: How not to get burnt in a hot Brazilian gambling market
