World Cup should accelerate changes in the betting market

The regulation of the sports betting market began to increase the requirements for companies authorized to operate in Brazil. Areas such as user security, operations tracking, data protection and responsible gaming policies have gained weight on the eve of the next World Cup, the first major international tournament held under the sector's new rules.

In addition to the operational changes, the World Cup should boost the movement of users on platforms linked to sport. Historically, major competitions increase the audience for broadcasts, statistics, social networks and content about football, also increasing circulation on digital sports entertainment services.

The market assesses that this new environment should accelerate a process of consolidation of operations and favor companies with a greater operational and technological structure. Data from the consultancy LCA, released by the Brazilian Institute of Responsible Gaming (IBJR), estimates that the regulated online betting sector could generate more than R$100 billion over the next decade.

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For Nickolas Tadeu Ribeiro de Campos, founder and chairman of the Board of Ana Gaming, the holding company responsible for the 7K Bet, Cassino Bet and Vera Bet brands in Brazil, regulation should lead the public to pay more attention to companies that invest in user protection mechanisms and responsible gaming practices.

"This will be the first World Cup with the betting market regulated in Brazil, and there is a great expectation that the public will begin to differentiate more clearly between companies that operate within the rules", says Nickolas Ribeiro.

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New rules increase demands for operators
In countries where sports betting already operates under consolidated regulation, such as the United Kingdom, Spain and Italy, the tightening of rules has strengthened user protection mechanisms and raised the level of professionalization of the industry.

In Brazil, the sector's projection is that the next World Cup will act as the first major test of this new regulatory environment.

Nickolas Tadeu believes that the greater visibility of companies during the tournament should intensify discussions about consumer education and responsible gaming practices.

"The World Cup focuses people's attention and, therefore, increases the responsibility of companies in the way they communicate with the public. Our focus is to ensure that entertainment takes place in a transparent and responsible way, ensuring a safer experience for users", he says.

Preparation for this period involved strengthening identity verification mechanisms, anti-fraud monitoring, data protection, certifications, encryption, support channels and registration validation (KYC), in addition to measures aimed at responsible gaming and restricting access for minors.

Football boosts audience in digital services
Large competitions also tend to change public behavior in the digital environment. Even people who only occasionally follow football start to consume more broadcasts, videos, statistics and content related to the games throughout the tournament.

For companies linked to sports entertainment, the period usually represents relevant growth in audience and user movement.

"The World Cup increases people's involvement with football and increases movement on platforms linked to the sport", says Antonio Guerardi, CMO of Ana Gaming.

According to him, preparation for the tournament involved initiatives aimed at users' digital experience during the competition.

"We prepared for this period with initiatives designed to keep up with the intense pace of the competition and strengthen the connection with those who experience the tournament throughout the competition.

The World Cup is an opportunity to show users that they can trust the platform they chose, and we want to live up to that expectation", he says.

Companies reinforce investments in technology and security
The new rules also increased the dispute between operators seeking to expand their presence in the Brazilian market in the coming years. With stricter requirements, companies began to direct investments towards operational stability, security mechanisms and technological structure.

Marco Tulio Oliveira, CEO of Ana Gaming, highlights that the next edition of the tournament will have a different weight for the sector precisely because it takes place in a regulated environment.

"The World Cup naturally increases the public's interest in sports entertainment. Brazilians may even say months before that they are not in the mood for the tournament, but, as the competition approaches, football starts to occupy an even greater space in people's daily lives because it is part of the country's culture", he says.

For him, the new scenario also increases the pressure for more structured operations.

"We are preparing for this new moment with investments in technology, security, transparency and responsible gaming, seeking to offer increasingly qualified navigation to users", he says.

Sector must undergo consolidation
The market projects that regulatory changes will continue to accelerate transformations in the industry in the coming years. In parallel with the sector's growth, companies must face greater charges related to advertising, fraud prevention, data protection and responsibility for the experience offered to users.

In a more competitive environment, operators with greater capacity to adapt to the sector's rules should consolidate market space in the coming years.

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Source: CNN