Flutter eyes leading position in Brazil as Betfair files application
Flutter expects to be a leader in Brazil’s licensed betting market, CEO Peter Jackson said in its Q2 results on 13 August. Although he did not reveal a formal strategy for the market.
“I think we’re reasonably well placed with our Betfair brand in that market. And of course, we also operate PokerStars out there as well,” Jackson said.
“We are ambitious, right? We like to have podium positions. And I really would like to have gold medal positions.”
Operating its Betfair brand in Brazil, Flutter submitted its Brazil licence application the day of its earnings. Constant currency growth for Brazil was 11% in Q2.
When questioned on M&A
“We will work out what we want to do in Brazil and when we’ve made a decision, we’ll let the market know if there’s something to say.”
Brazil is pivotal to Entain’s growth strategy
Performance in international markets, including Brazil, helped drive Entain’s 6% year-on-year rise in net gaming revenue (NGR) during H1. Chief commercial officer and president Sameer Deen told analysts winning in Brazil was necessary to drive organic growth going forward.
Its net gaming revenue in Brazil shot up 48% year-on-year in Q2 after a 9% increase in Q1. The company said it expects that growth to continue in H2 as the legal market edges closer.
First time depositors (FTDs) in Brazil trended above those seen in 2022 and 2023. The company credited a more efficient marketing spend and an improved experience for bettors using its Sportingbet brand. Entain filed its betting licence application in Brazil in July.
Localisation teams have been doubled to improve Entain’s competitive advantage in markets like Brazil, chief product officer Satty Bhens said during the H1 earnings call.
LatAm not in DraftKings’ plans
The potential of LatAm and particularly Brazil is catching the attention of much of the industry, though US giant DraftKings isn’t expecting to expand into the region anytime soon.
Responding to analyst questions, CEO Jason Robins said there were no plans to enter the region organically or via M&A.
Although he said if they did it would be through M&A.
It’s a change in strategy for DraftKings, which was among initial 130 operators that expressed interest in the Brazilian market following the chamber of deputies’ final approval to regulate gambling on 21 December.
Rush Street Interactive not rushing into Brazil
In Rush Street Interactive’s Q2 results, a key highlight was the company’s revenue in LatAm rocketing 72.4% year-on-year to $31.9m. Monthly active users in the region were up 72% to 224,000.
The company is set to continue its LatAm expansion with its RushBet brand launching igaming and online sports betting Peru in July as part of the business’ “strategic advancement” into the region.
However, despite results success elsewhere in LatAm, Rush Street Interactive CEO Richard Schwartz also said the company won’t rush into the Brazilian market, though it still plans to launch there.
“Brazil is a large and exciting market,” Schwartz said on the earnings call. “There’s lots of moving parts there. It’s very important that we sort of remain disciplined and more thoughtful about how we approach the market.”
Betsson achieves record results in LatAm
Betsson made a number of moves in the lead-up to results season, securing a licence for its Betsafe and Betsson brands, as well as its subsidiary Inkabet.
Betsson’s Q2 LatAm revenue was a quarterly record, rising 21.8% to €62.6m. The LatAm region accounted for 23% of Betsson’s total Q2 revenue, with the company crediting growth in Argentina and Colombia for the increases.
On the post-Q2 earnings call, Betsson president and CEO Pontus Lindwall largely kept his cards close to his chest on Brazil, refusing to go into detail on the company’s preparations in the country ahead of the legal market launch date of 1 January 2025.
Lindwall did speak of his excitement about Betsson’s plans in the region as a whole, though, saying: “I think we have conveyed to the market our ambitions for that very large opportunity, and that ambition remains. So, we will put a lot of efforts to grow there.”
MGM teases BetMGM LatAm ambitions
MGM Resorts International Interactive has hinted at plans to launch its BetMGM brand, operated by LeoVegas outside of the US, in LatAm. President Gary Fritz said a LatAm launch was imminent during the company’s Q2 earnings call.
“The third pillar of our strategy is to target organic growth in attractive regulated markets with the BetMGM brand. We have already launched the brand in the United Kingdom and the Netherlands, with great early results, and we plan soon to enter Latin America.”
Kambi still impacted by Brazil delays
In July, Kambi Group announced it was withdrawing its 2027 revenue and earnings targets due to delays in regulation in some markets, and that was again a factor in its Q2 report.
The report stated Kambi’s revenue would be affected by delayed Brazil regulation, though it still expects to “gradually gain market share” in the country.
Despite regulation not progressing as quickly as Kambi expected, the company has continued to agree deals across LatAm.
In Brazil, Kambi expanded a December 2022 partnership to power Rei do Pitaco’s online sportsbook in June when its esports division Abios announced an agreement to offer the operator’s fantasy soccer product.
Kambi also launched online in Peru during the quarter with Betwarrior, while another operating partner in BetPlay expanded into Ecuador.
OpenBet sets sights on Brazil after being put up for sale
In announcing its Q2 earnings, Endeavor revealed it was in the process of looking for a buyer for its OpenBet and IMG Arena businesses.
In response, Openbet CEO Jordan Levin said the platform was looking to Brazil as an opportunity in the near-term.
“OpenBet is focused on pursuing opportunities with the launch of Brazil’s newly regulated sports betting marketplace, which is anticipated to become one of the largest in the world,” he said
Original article: https://igamingbusiness.com/finance/latam-results-round-up/
