Brazil online bets banned, but demand remains for overseas providers: Blask

Locals’ demand in Brazil for domestic online gaming “collapsed in two steps” as measured across three consecutive Fridays starting from September 25, when the country’s government brought in a provisional measure to begin curbing it. But demand for the offshore-provider part of the market stayed consistent, though the offshore market share jumped as a consequence of the shrunken overall universe of players. That is according to a report by gaming market intelligence firm Blask. The prohibition on domestic suppliers remains subject to congressional approval and has been challenged by industry groups before Brazil’s Supreme Court. In a prior report, Blask had estimated 86 percent of Brazil’s 25.2 million previously-legal bettors might continue gambling following the ban, predominantly through offshore platforms not subject to Brazilian oversight. “International [-provider] demand did not grow: it stayed at around 280,000 to 295,000 across all three Fridays,” from September 25, Blask stated in its latest analysis. By contrast, local demand fell from 5.41 million for local operators on September 25, to 959,000 by October 2, under the government’s phased shutdown arrangements, the research firm noted. Offshore providers’ Brazil market share “rose from 5 percent to 28 percent because the rest of the market disappeared,” explained Blask. On September 25, the Blask Index for Brazil was 5.71 million: 5.41 million for local operators (or 94.83 percent of the market); and 294,900 for international ones (or 5.17 percent of the market). Blask noted: “It was already 20 percent below an average pre-ban Friday, but the market still looked like a licensed one.” On September 26 there had been a “spike” in demand for online gaming that saw it jump 41 percent to 8.05 million, with local operators on 93.83 percent, and international providers on 6.17 percent. “The jump was news-driven: people searched for the brands that had just been banned,” Blask suggested. Within 24 hours such surge of interest “was gone,” noted the firm, falling back to 3.41 million in local demand, and 405,200 for international providers. Nonetheless in the constrained market, the share for international providers rose 10.63 percent. By October 2, the index stood at 1.24 million, with local operators on 959,000, and international on 282,000. “In one week, the total fell 78 percent from the decree day, local demand fell 82 percent, and international demand barely moved” falling 4 percent. The international share was 22.7 percent. On October 9, the third Friday in the research data, after licensed sites went offline on October 6, the index was 1.01 million, with local on 725,000, and international providers on 283,000, “practically the same as a week earlier,” noted Blask. The total was 19 percent below October 2, and 82 percent below the decree day. The share of international providers had grown to 28.1 percent.