Esports Could Be an Integral Sector of Brazil's Sports Betting Legislation

Published November 10, 2022 by Brett C

Esports Could Be an Integral Sector of Brazil's Sports Betting Legislation

Brazil lawmakers are hard at work formulating plans to regulate sports betting. This topic has generated tremendous fanfare from industry experts, particularly on legalisation measures for Esports. As a central component of sports betting in this Portuguese-speaking country, Esports attract enthusiasts.

The CEO and founder of Abios (EsportsOperator), Oskar Froberg, sat down to discuss the impending legislation in the industry with Marese O'Hagan. O'Hagan quizzed Froberg about how Brazilians enjoy eSports and whether legalisation initiatives could be a tipping point for the burgeoning industry.

The legislature passed provisional Measure 846/10 in December 2018. At that time, the government set a two-year time window to establish legislation for sports betting. The government extended this period for an additional two years through December 2022.

Various rules and regulatory proposals were announced in 2022, and sports betting operators are staying abreast of the country's excitement about sports such as football. Naturally, the country that gave the world Pele has a deep affinity to football betting, but a growing interest in Esports has also taken hold.

The CEO and founder of Abios, Froberg,  was quick to point out that Esports was a viable proposition for Brazil when he discovered how popular League of Legends was in Brazil in 2013. Many communities were up and running in Brazil, on Facebook, with community discussions about this pulse-pounding game and other eSports attractions. He added,

The intention is to legalise or regulate sports and esports betting towards the end of 2022. We keep close tabs on these things because we deliver probability or odds products in different regions and all areas where we're licensed. In South America, we see massive popularity for FIFA or eSoccer," Fröberg continues. "In the South American market, there's no reason why Brazil should be any different. Being a soccer/football nation at heart, they'll be hugely interested in FIFA and eSoccer.

The people of Brazil are very dedicated and very interested in sports in general, and many of them are very interested in esports.

The Legal Framework

The sports betting regulations in Brazil make accommodations for Esports, as per the publications from May 2022, with 22.2 million Brazilian real license fees included. One of the primary differences for Esports operators is that there must be a subsidiary in Brazil for the legal placement of bets. Established providers may benefit through the subsidiary-based system in the country by decreasing competition and increasing operations costs.

The regulatory framework remains uncertain, despite a burgeoning eSports market in the country. Established sports betting operators attempting to benefit from setting up sports betting could face obstacles. While several industry specialists focus on drawing bettors to Esports, Froberg is more focused on getting them to place bets than getting them interested in eSports. Furthermore, since this sports betting category is an audio-visual experience with betting potential, skin trading is a big part of it. All this makes the viewing experience more enthralling.

However, these challenges require a strong marketing initiative. For example, re-regulation and strict advertising standards have been implemented in the Netherlands. Operators will likely want to avoid such frameworks in Brazil. Marketing to bettors is an exciting challenge in Brazil for many reasons. Given Brazil's huge population and young demographic, this Latin American country presents enormous potential to operators. In addition, the public's insatiable appetite for eSport is growing stronger by the year; this bodes well for the prospects of the sport.

 As it stands, Brazil presents as the ideal playground for operators wanting to cash in on the newfound appeal of Esports.

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