As Brazil’s regulated betting market enters its second year, operators are beginning to shift their focus from aggressive expansion toward long-term sustainability, product quality, and player retention. During SBC Summit Americas in Florida, EstrelaBet’s Chief Business Officer, Fellipe Fraga, discussed how the industry is preparing for what many expect to be a defining moment: the first World Cup to take place under Brazil’s new regulatory framework.
In this exclusive interview with Yogonet, Fraga reflects on the maturation of the Brazilian market, the growing importance of brand trust in an increasingly competitive landscape, and the opportunities the tournament presents for operators. He also addresses concerns surrounding public perception, regulation, and illegal gambling, arguing that stronger dialogue and consumer education will be essential for the future of the sector.
One of the major topics throughout the event has obviously been the World Cup, the first one taking place under Brazil’s regulated betting market. How is EstrelaBet approaching it?
This is a World Cup we’ve been looking forward to for a long time, not only because it’s the first under a regulated market in Brazil, but also because the Brazilian industry itself is now much more experienced. Compared to the tournament in Qatar, the market today is far more mature.
It’s also a tournament that will be played in a very comfortable time zone for us and for Latin American audiences in general. That changes everything. We expect strong growth across the industry, with estimates pointing to more than 30% growth in business volume, more bettors and more engagement overall.
The timing of the matches means people will actually be able to enjoy the games instead of watching while working, and that creates a major opportunity for us to show Brazil the strength and seriousness of the regulated market.
We are entering the second regulated year in Brazil. What do you think operators learned during the first year, and are we now entering a more mature phase?
Absolutely. The first year was very much about learning. Everyone had to adapt to new rules, new procedures, and operational details that naturally come with regulation.
Companies like ours were already operating above many of the standards eventually required by law, but even so, there were still adjustments to make. Now, in the second year, we know what to do, how to do it, and how to react more quickly. That gives us much more agility when it comes to innovation.
At the same time, regulation is creating a market consolidation process. Some companies, for better or worse, are struggling to maintain their space under the new framework. So we are likely to see stronger concentration around operators that are able to adapt well and build sustainable operations.
Do you think operators’ priorities have changed now that the market is entering its second year? During the first year, there was a lot of focus on aggressive customer acquisition and spending. What is the picture now?
Today, the priority is much more about building brand trust. The acquisition space has already narrowed significantly because most players are already registered somewhere, already betting and already part of operators’ databases.
Now the challenge is retention, and retention is not only about marketing. It’s mainly about product quality.
We can clearly see the market evolving and becoming more mature. Players want better experiences and stronger entertainment value. That’s why we spoke so much about entertainment during the panels. When you offer a better product, players stay longer and engage more consistently.
Despite the acquisition space having already narrowed, the World Cup is still expected to bring many first-time bettors into the market. How do you make sure those users don’t just place one bet and disappear afterward?
Retention in Brazil depends on several factors. First of all, we need to make sure players have a positive experience regardless of whether they win or lose their first bet. If someone has a bad first experience, they may never come back.
That means offering a stronger overall experience and maintaining contact after that first interaction, whether through CRM campaigns, calls, cashback offers or other engagement tools. The player needs to feel that the entertainment experience on the platform is positive and ongoing.
Retention starts with the very first bet and continues throughout the tournament and beyond.
Lastly, there has been a lot of debate around the perception of online gaming in Brazil. We’ve seen criticism from some sectors and proposals for stricter controls. What do you think is necessary to maintain viable conditions for the regulated market?
The most important thing is creating a broader understanding that the regulated industry is important for the country. Players are not going to stop gambling. If you overrestrict the regulated market, people will simply migrate to illegal operators.
We have already seen that happen in several European countries that tried to solve the issue through excessive restrictions, higher taxes, or advertising bans. Italy is a good example — they are now revisiting the so-called “Dignity Decree” because it did not achieve its intended goals regarding compulsive behavior.
In Brazil, if you strengthen the regulated market while effectively fighting illegal operators, you create a safer environment for players. The government can monitor who is playing, how they are playing and ensure proper consumer protection and data control.
That’s why dialogue is essential. There needs to be communication between all stakeholders involved, especially with public opinion.
This month, for example, a group of artists launched a campaign criticizing the industry using misleading and outdated numbers that do not reflect the reality of the regulated market. They simply do not understand how the regulated industry operates.
In the end, dialogue will be the only path forward.