Rei do Pitaco (RDP), Brazil’s main fantasy sports activities operator, is formally transitioning into the nation’s regulated sports activities betting market. Based in 2019 by Kiko Augusto, RDP has dominated the fantasy sports activities house, capturing over 90% of the Brazilian market. Backed by $39 million in investments from distinguished corporations equivalent to Bullpen Capital and Globo Ventures, RDP has now acquired its license to function as a sportsbook, marking a major step in its progress trajectory.
“Our medium-term plan was all the time to hitch the sports activities betting market,” Augusto acknowledged in keeping with Sportico, highlighting RDP’s technique to emulate U.S. giants like DraftKings and FanDuel. Not like many opponents that operated in Brazil’s unregulated grey market, RDP deliberately avoided doing so to keep up favorable relations with the federal government. “We’re the great guys of the market,” Augusto added, emphasizing the advantages of working in a clear, regulated setting.
Brazil’s Betting Market: A Fragmented Panorama
Whereas Brazil legalized sports activities betting in 2018, the absence of a regulatory framework allowed offshore operators to flourish. That’s set to alter, as the federal government introduces laws at the beginning of the brand new yr. The regulated market is anticipated to generate $10 billion in income inside its first 5 years, in keeping with an OpenBet report.
Presently, the market stays fragmented, with Betano main at 23% and Bet365 shut behind with 20% market share. Nonetheless, competitors is poised to accentuate, with over 100 firms making use of for licenses. Augusto sees this as a possibility, stating, “There isn’t any clear market chief, so in a regulated market, somebody can set up a very good place.”
Worldwide gamers, equivalent to FanDuel and MGM Resorts, are additionally eyeing Brazil. FanDuel lately acquired a majority stake in Betnacional, the fourth-largest grey market operator, signaling its intentions to capitalize in the marketplace’s potential. Regardless of the optimism, some firms, like DraftKings and Betway, have opted to keep away from Brazil because of the anticipated competitors.
RDP’s Aggressive Edge
RDP is banking on two key benefits: its deep reference to Brazilian tradition and its in depth person base of eight million fantasy sports activities gamers. The corporate’s app, designed by Brazilians for Brazilians, incorporates options tailor-made to native preferences, equivalent to detailed soccer statistics. This localization offers RDP a singular enchantment in comparison with international operators.
Furthermore, Brazilian bettors predominantly concentrate on native soccer, with 90% of bets positioned on home matches. Augusto famous that even e-soccer, the place avid gamers compete in FIFA, ranks greater than worldwide sports activities just like the NBA and NFL. “We’ve the experience—for choices, pricings, buying and selling—as a result of we’re Brazilians and we come from a fantasy background,” he defined.
RDP’s robust model presence additional bolsters its place. Regardless of not but providing sports activities betting, a survey performed by a significant Brazilian media outlet ranked Rei do Pitaco because the seventh-most common betting model within the nation.
With its newly secured license, RDP is ready to formally enter Brazil’s regulated sports activities betting market in two weeks. Because the panorama shifts from an unregulated grey market to a structured framework, firms like RDP goal to carve out vital market share. With its native experience and constant person base, RDP is well-positioned to compete in what guarantees to be one of many world’s most dynamic betting markets.
