The Sweden-based affiliate, in a collaborative data project with iGBA, has revealed how the Brazilian market grew significantly in the second half of 2022. With the long-awaited launch of regulated sports betting expected to be formalised in the coming months, Leadstar’s data provides a crucial insight into the emerging market
Leadstar’s data showed how the total search volume from its sites of all operators grew between H1 and H2 2022. The figure rose from 281,350,096 to 505,419,228 representing a 79.6% increase, which can be used to indicate “underlying growth in the market” according to the affiliate.
In terms of market share there were some big winners with Betano increasing its holding, according to Leadstar, from 15.6% to 29.2% from H1 to H2 2022, although it remained the affiliate’s second largest operating partner in both halves of the year.
Market share leader Bet365 saw its lead cut in the same period from 64.2% to 42.8%, which also saw the likes of Betnacional and Estrelabet grow too.
Also having its share cut was Pixbet, going from 2.5% to 0.4% and Betfair with its 3.3% market share decreased down to 2.3%.
Felipe Pereira, website manager at Leadstar brand Bonusdeapostas.com, said that the affiliate “loves collaborating with renowned brands such as Bet365 and Betano, both in the Brazilian market and in general”.
“At the same time the emergence of more quality brands in the market is very beneficial for us as an affiliate,” added Pereira. "This has provided us with a wider range of options to include at the top of our lists, which benefits our products and our visitors looking for a sportsbook or an online casino."
In the Swedish-based affiliate’s search volume data for Brazil, the end to the year signaled greater results. Betano had an increase in search traffic of 235%, whilst Estrelabet saw a rise of 339%. Pixbet, in line with its other decreases, saw its search volume decrease by 72%.
The group that Leadstar determines as its market leaders controlled a 84.2% share of total search volume in H1 2022, a figure which was scaled back to 75% in the second half of the year.
Similarly, Leadstar’s market leaders had a total clicks share of 79.2% in H1 2022, which scaled back to 45.3% in H2 2022.
"Many of the new local Brazilian brands are not so familiar with affiliation from the start,” said Pereira. “To be honest, it requires a lot of effort to get them to work with us. However, they are all very satisfied with the results once we have started."
Leadstar entered the Brazilian market in 2019 and since then “competition among affiliates has increased significantly as well,” the website manager added..
“I believe this development is positive for the people in Brazil as competition drives better conditions for players.
“It also motivates us to be active and improve in order to make sure that our products are better than our competitors.”
Sports betting regulation imminent
Recently, Brazil’s government launched a provisional measure for sports betting, in a move that marks the end of a 20-year wait period for the country.
The provisional measure (PM) was adopted by Brazil’s president, Luiz Inácio Lula da Silva and signed by the ministries of finance, planning, management, health, tourism and sports.
Once signed by President Lula, the PM will be published by Brazil’s government and will be enacted for an initial maximum period of 60 days, before it can be extended for another 60 days.
Leadstar believes that this final push to regulated sports betting in Brazil might make some changes to the gambling landscape. With a sports betting licence stated to cost operators R$30m (£4.91m/$6.1m/£5.7m) and tax revenue at 16% according to the provisional measures, Pereira questions how many operators will actually apply.
“Will we see many of the local brands abandon the market completely? Will the ones who are already active stay and go for the license, or will it even keep popping up new ones at the same pace as before given the potential in Brazil?” the site manager questioned.
Yet, the bigger operators with a global holding “might be better equipped financially and have experience with regulatory frameworks and procedures that will probably help.”
“It's hard to predict what will happen but further regulation of the market has the potential to change the landscape quite a bit,” Pereira concludes.
It’s likely then that any changes brought on from the regulation of sports betting in Brazil won’t be seen for some time, but Leadstar’s 2022 data is on course to hold firm for 2023 as well.