The Brazil effect: Now is the vital time to capture LatAm’s esports surge

The Brazilian market is emerging as a jackpot for the global gambling industry, but the real high score may lie in the unlocked potential of its booming esports scene.

The vast South American nation is set to become one of the world’s most lucrative gambling markets in the coming years, with revenues set to reach $12.7 billion by 2028 (assuming that land-based regulates), according to figures from iGB’s data partner H2 Gambling Capital.

The global gaming industry currently resembles something a little like the first week of a FIFA World Cup tournament – all eyes are on Brazil. The enthusiasm for this LatAm land of opportunity has kept growing since the licensed online gaming market went live in January 2025.

Unsurprisingly, football is king in Brazil’s nascent legal wagering market, accounting for around 80% of bets in figures cited by Waterhouse VC analysts. Another traditional sport, basketball, is the second most popular betting market.

In third place, however, is esports – ahead of established verticals such as tennis, golf and combat sports. Still considered a niche by many across the world, the popularity of video gaming and live streamers in Brazil helps to explain why it is accounting for so much business in the legal betting market’s early months. In recent years, Brazil has been the second biggest global market for streaming platform Twitch with almost 17 million users.

Many of the world’s leading streamers are Brazilian, including the likes of Gaules, Baiano and Alanzoka. While the kids may still love Vini Jr and Raphinha, ‘Counter-Strike 2’ streamer Gaules attracted some 101 million hours of viewing time during 2024, according to Streams Charts figures.

But the lines between Brazil’s traditional sports heroes and the esports scene are also starting to blur. Football stars like Neymar (president of FURIA’s Kings League team), Casemiro (owner of Case Esports), and Vini Jr (a partner in LOUD) have all invested in esports, highlighting just how deeply gaming is embedded in Brazil’s broader sporting culture.

With such intense interest, it is little surprise that betting on esports competitions is proving to be so popular, according to Marek Suchar, co-founder and managing director of leading esports betting solutions supplier Oddin.gg.

“Betting is essentially following your passion and putting your money where your mouth is,” Suchar says. “So when you have the players and the viewership [in esports], this will translate into the betting numbers as well.”

Brazil a key player in esports betting growth

Esports betting has experienced remarkable growth over the last year, according to Oddin.gg’s Esports 2024 report. With a global reach, and offering services such as esports odds feed, risk management, an esports betting iFrame solution and marketing services, Oddin.gg has become a powerhouse in the sector. Its partners include Betway, Stake and Betano.

In its 2024 report, Oddin.gg found that major esports titles saw betting volume increases of up to 175% year-on-year, while bet count was up 131%. Total wagered amounts and average stakes climbed across major tournaments compared to 2023, reinforcing esports’ expansion as a maturing betting vertical. Global stream viewership also saw notable increases, highlighting the growing size of the addressable market.

Much of that wagering growth, says Oddin.gg’s Suchar, was driven by esports betting in LatAm markets, especially Peru and of course Brazil. The country – with a population of 211 million – is one of Oddin.gg’s top five markets in terms of handle, but it is the fact that it already has the second greatest number of bettors that illustrates the nation’s potential.

“Around six years ago, one of our clients in the Czech Republic and Slovakia, Tipsport, took a closer look at its esports vertical,” Suchar says. “What they found was that it was around 20^th in terms of handle in its sportsbook at the time. But at the same time, it was the sixth biggest sport for new bets.

“They saw this and their thinking process was very logical. Thinking about the longer term – the next five to 10 years – they considered that if esports’ popularity continued to grow, then so would this betting vertical. Right now, esports is essentially already 7% of their sportsbook, sitting at fifth place by total volume, and it is this year most probably going to be the fourth biggest handle when it comes to live betting.”

Esports an acquisition tool for LatAm?

Such growth, if replicated across LatAm, would be exponential. Figures published by iGB show that 38% of regular esports watchers in Brazil regularly bet on esports competitions – a number more than three times higher than the 12% in the US. With more than 40% of Brazil’s huge population under the age of 30 – the average global age of an esports bettor is 23 – sportsbooks can expect to welcome more and more esports bettors, and benefit when they become older and wealthier.

Esports is also a shrewd marketing tool to bring in new LatAm customers who might otherwise not discover other forms of gambling. Attracting Gen Z is an astute move, as they could be customers for many years to come. Early entry to the market is therefore advisable.

“The young are digitally savvy and can easily block gambling operators’ advertisements. Esports is a way to get them through the door, to provide them something they care about.”

“An average football bettor would be in their 30s and a baseball bettor in the US would be in their 50s. However, esports bettors are in their early 20s, so if you can get them in you have signed up a long-term client. The lifetime value of an esports better is very competitive compared to the other sports.”

Regional differences in LatAm esports

Suchar believes there is no reason why betting operators offering traditional sports cannot successfully launch esports betting in Brazil or other LatAm countries. However, he warns that they must understand the market to avoid repelling potential customers.

Each LatAm market has its own nuances, so simply replicating a product from other regions is not advisable. Operators entering the market must consider favoured titles and take into account the entire video gaming ecosystem that includes not just esports competitions, but also the wider community and its leading influencers.

“Esports is not one thing – just as you don’t just look at ‘ball sports’ instead of football, basketball and volleyball individually,” Suchar says. “When you look at Brazil, it will be mostly about Counter-Strike 2, followed by League of Legends. Then there will be also Free Fire and then some smaller ones. But, for example, in Peru, the market will be all about Dota 2.

How to be successful in Brazilian esports betting

Those operators struggling to gain traction with esports should first evaluate whether their product setup and approach are aligned with what bettors actually want, rather than concluding that there is something deficient about the vertical itself. Suchar suggests that when operators are losing money, it often comes down to a combination of factors tied to poor quality of the product – especially odds.

“Esports is a different beast compared to traditional sports,” he explains. “Frequent patches, the fast pace of play and game complexity call for a tailored approach. When we see low volumes or negative margins, it’s usually due to short uptime, limited live markets or poor coverage – issues that reflect poor product execution more than a lack of demand.

“Many times, we’ve seen a shift when an operator fixes two major things, product and promotion to the market – both of which Oddin.gg can help with.”

In terms of product, operators should focus marketing efforts on each country’s favoured games. Offering a premium platform to stand out within the nation’s gambling gold rush is also advisable. Suchar suggests one valuable addition would be in-platform live streaming of esports competitions and widgets, which unlike traditional sports are generally streamed for free on platforms like Twitch and YouTube. This enables bettors to wager without even having to leave the sportsbook.

Beyond performance, Oddin.gg emphasises integrity as core to its offering. The company is a member of the Esports Integrity Commission (ESIC) and adheres to robust integrity standards, including internal risk management designed to protect both operators and bettors. This approach aligns well with Brazil’s recent regulatory initiatives – bringing structure, consumer safeguards and long-term viability to the market.

In terms of promotion to the market, Oddin.gg recommends that operators ingratiate themselves within the ecosystem and become a known brand. He warns against employing external marketing agencies that may have regular sports betting expertise but know little about esports. Oddin.gg itself works with an esports-centric marketing agency that is helping its clients with media coverage and developing commercial partnerships.

“In Brazil, the passion is there, the volume is there, and we are seeing the growth,” Suchar says, adding that other LatAm markets are catching up. “Players will come if they can enjoy your product and you can grow with them.”

Like Brazilian football, Brazil’s esports sector is unique and special. For operators bold enough to engage authentically and build for its esports ecosystem, the rewards could be immense. As Suchar puts it, the passion is already there – now it is about delivering an engaging product that matches the energy, earns the trust and grows with the community.