Sports betting in Brazil has been growing rapidly in recent years. This growth is driven by customer preferences, market trends, unique local factors, and broader economic conditions.
There are several iGaming KPIs that confirm the growth of sports betting in Brazil. These include the revenue from online sports betting, average revenue per user, the number of users involved in online sports betting, penetration rate, etc.
But, probably, the most significant factors that clearly depict the growth of the Brazilian sports betting market in the last two years are the average bet amount per user, overall bet count, and the overall bet amount, sometimes with massive +100% jumps from quarter to quarter.
So, we’ve compiled the data for the Brazilian Market and decided to analyze these factors to see how the situation has changed in the local sports betting scene in the last two years and what components are responsible for this change. The results of our analysis are presented in this article.
Brazil’s Online Betting Surge: The 2022 Turning Point
Things have fired up in Brazil in the second half of 2022, and everything started this year. The growing number of users (0.8 million users in 2022) increased revenue from sports betting (0.3 billion USD). In the same year, the quantity of Brazil’s registered betting companies grew by 204%.
Well, it’s clear that the sports betting sector in Brazil has boosted significantly by benefiting from the increased connectivity promoted by the internet and technology in the face of pandemic isolation, taking over the world in 2022.
If we look at the LatAm sports betting region countrywise, Brazil is among the most prominent players. Accordingly, at that time, the sudden explosion of sports betting in Brazil had also impacted the LatAm market. In 2022, The region had a 40.1% surge in online sports betting revenue from 2021 (1.75 bln USD). To further investigate and read a detailed analysis of this theme, visit our article – sports betting in Latin America.
Bet count, Bet Amount, and the Average Bet amount per user in Brazil
Okay, so 2022 was a great start. But, like in action movies, it was just the beginning. According to our internal sources, in the 4th and final quarter of 2022, the bet count (the overall quantity of bets made by the users (note that one user can make as many bets as they want)) increased by 58%. After that, it maintained a stable position for the first three quarters of 2023 with small ups and downs. And again, in the 4th quarter of 2023, the bet count increased by a staggering 50%; in the first quarter of 2024, the same criteria had an 8% increase, and in the second quarter, a 6% decrease.
So, the growth trend is very active. To specify, if you look at Picture 1, you’ll see that after the surge in the data, the bet count remains on the plateau for some time (3-4 months), and then again – there’s an upswing.
Picture 1 – Sports betting in Brazil – Overall Bet Count and Bet Amount
Similarly, you can look at the growth graph of the bet amount in the same picture. The orange line shows the growth of the bet amount with the respective indexes shown in the left corner of the image. Well, if you observe it closely, you’ll notice two massive subsequent jumps in the last two quarters of 2023 (Q3 and Q4). These jumps show 103% and 110% increases, respectively, in the bet amount.
It’s beyond doubt that bet count and amount are codependent variables, meaning that the change in one will entail a similar change in the other. The very same trend is visible in the picture, too. But, here’s the thing: in Q3 of 2023, the bet count increased only by 17%, while the bet amount increased by 103%. Well, the difference is vivid and obvious, a small increase in one variable won’t cause a huge increase in the second unless:
- These two variables are unrelated or,
- There is a third variable that mediates the relationship between these two.
Let’s cut it short, the third one is an average bet amount per user. To clarify, the average bet amount per user in Brazil increased by 73% from Q2 to Q3 of 2023. So, now, when lining up 17% and 103% increase indexes in the same time period, everything becomes clear.
The growth of the average bet amount per user explains why sports betting in Brazil witnessed a massive growth of the overall bet amount compared to only a slight increase in bet count in the same period.
It means one thing – Brazilian users tend to wager more money on each of their bets than they used to in the past. Indeed, the average bet count has increased by 115% in just one year. So, if the average bet made by the average Joe used to be $5.8 in February of 2023, in 2024, it’s $12.5. For more detailed information about the growth of the average bet amount per user, check out the graph in Picture 2.
Picture 2 – The Average Bet Amount Per User on Sports Betting in Brazil
On the other hand, one of the reasons for the increased average bet amount in Brazil is the influx of sports betting operators offering improved sportsbook software with localized content and features from leading sportsbook providers (Check out the article – How to choose the sportsbook software provider). The advanced platforms have not only attracted more users but have also enhanced the betting experience, making it more engaging and accessible. As a result, bettors are more inclined to wager higher amounts, contributing to the significant rise in the average bet value.
And speaking from that stance, one of the most significant products launched in the LatAm market in late 2022 was our sportsbook (For more information, read our article – What Upgaming offers to LatAm Sports Betting Market). So we are not blowing our own trumpet or something like that. But, still, the entry of our sportsbook into the Brazilian market contributes to the increase in the average bet amount, the overall bet amount, and the bet count in Brazil.
In turn, localized content and premium software with loyalty programs for Brazilian users increased the Customer Lifetime Value (CLV), translating into an increased average bet amount per user. So, now the situation is like this – operators and affiliates are investing more, spending their money to acquire advanced software with various features, promote their partners, or improve their service in other ways. All of this creates a chain reaction – sportsbook users are betting higher amounts than they used to.
More facts about the growth of the Sports betting market in Brazil
Now, let’s review other critical components of online sports betting in Brazil. Let’s start with online sports betting revenue. We already mentioned that 2022 is a starting point for sports betting in Brazil. Before that, we didn’t have any data about the situation, so we will not speculate about the circumstances before that year.
According to Statista Market Insights, in 2022, the revenue from sports betting in Brazil was 0.30 billion USD. In 2024, it went up to 0.60 billion USD. That’s a 100% growth in two years.
Regarding the number of sports betting users in Brazil, there was a 150% increase from 2022 (0.8 million) to 2023 (2 million users). In 2024, the index stays at the same spot and there are no spikes in the number of users.
One might assume that the increase in the bet count, bet amount, the average bet count per user, and other components discussed above are the outcomes of growing economic factors. But that’s not the story here, at least not in Brazil. There is no evidence of significant growth in factors like GDP, household income, and so on.
However, there are other criteria we can line up with our KPIs. For the main part these include smartphone users in Brazil and internet penetration rate. In the last two years, the number of smartphone users has grown by 25.2 million, while in 2024, the internet penetration rate is 74.2% of the population.
We don’t need to explain how the growth of the sports betting industry and smartphone and internet penetration rates are intertwined. Internet penetration directly affects the development and growth of online sports betting, and it’s well known that at least 70-80% of bets are made from mobile devices.
Nonetheless, the growth of sports betting in Brazil is not solely the result of technological advancements. Brazilian culture is very tolerant and open to sports betting and betting activities in general. Same goes to the other LatAm countries, sports betting is the most popular type of iGaming content in Latin America. Brazilians love football and other sports. To cut it short, sports betting is a socially legitimate and “legalized” activity.
Well, soon, it will be officially legalized, too. In early December 2023, the Senate approved a bill that provides a straightforward legal framework for betting operators, covering key issues like taxes, advertising rules, and legal boundaries for operation. Regulating the gray areas has become one of the most visible iGaming trends of 2024 and Brazil won’t be an exception. The country is ready to legalize and regulate sports betting, another important facilitating factor for the growth of the local betting industry.
Conclusion
The rapid growth of sports betting in Brazil is unmistakable. With the average bet amount per user significantly rising, alongside the surge in overall bet counts and amounts, it’s clear that more Brazilians are not just placing more bets—they’re betting bigger. This trend, fueled by increased smartphone usage and internet access, reflects a broader cultural acceptance and a likely boost from impending legalization. As the country moves towards officially regulating the industry, the future of the sports betting market in Brazil looks bright and full of potential.
