An in In-depth Look at the NZ Gambling Industry
Brazil is no longer a sleeping giant in the gambling world.
Brazil's rise in the gambling realm is not mere luck. In 2021, state lotteries alone pulled in estimated revenues of BRL 18.1 billion (around USD 4 billion), demonstrating the nation's appetite for such pursuits.
The nation stands tall as the 5th largest gambling market globally, and this growth isn't purely about money. It's about a passion for the game and the thrill that comes with it.
Proof of that comes in the shape of research done by SevenJackpots, which shows how real-money Brazilian gamblers, while having an unquenchable thirst for multiple types of betting, love the thrills of betting and enjoy the ride, without breaking the bank.Â
With the need for responsible gambling always at the forefront of growth in a domestic betting market, this is a huge tick for the future of gambling in Brazil.Â
Low budgets not a barrier to high thrills
While big bets and high stakes often dominate the gambling narrative, Brazil's story is different.
Most Brazilian gamblers, about 67%, spend under 50 BRL (approximately 10 USD) monthly on gambling. These figures highlight the entertainment nature of real-money gaming for most users in the country.
Source: ENV Media- Profile of a Brazilian Gambler
The same Sevenjackpots research shows that only 7% of those questioned spend more than 200 BRL a month on âgeneralâ betting, with the figure rising ever so slightly to 9% when just considering âonline gamblingâ.
Data from Statista backs up the idea that Brazilians like to establish a small monthly budget for gambling and have no problem sticking to it: their own research shows around 61% of Brazilian online gamblers spend on average less than 100 Brazilian reals a month (~ USD 20).
All of which, alongside other data, points to Brazilian gamblers tending to play regularly but with small amounts, highlighting a unique approach to the industry.
Budget is King for Brazilians
The same Sevenjackpots study asked which factors influenced their decision to gamble (or not) online? (Multiple answers were possible and selected).
Source: ENV Media- Profile of a Brazilian Gambler
The factor influencing their decision shared by most respondents, and by some margin, was âmy budget or disposable incomeâ, coming in at 48%.
It suggests that if there is no budget or disposable income available, they wonât gamble at all.
By the same token, it also implies that their gambling budget for the month is somewhat proportional to the amount of disposable income.
In other words, budgets can vary from month to month rather than always staying the same, evidence of the controlled nature of their gambling when it comes to stakes.
Gambling in Brazil is a hobby for who can afford it
And if the above doesnât specify exact budgets, we at least know that those who bet can probably afford to do so.
A breakdown of socio-economic levels of real-money Brazilian gamblers gives us an interesting insight into spending power. But itâs important to understand what the different levels mean.
Source: ENV Media- Profile of a Brazilian Gambler
In Brazil, socio-economic brackets offer a glimpse into the diverse landscape of households.
At the top tier, we have the esteemed A-level households, representing the epitome of affluence. Moving down the ladder, we encounter the B1 and B2 groups, encompassing the upper and lower-middle class segments.
Financially, things tighten up as we enter the C1 and C2 categories. Finally, we arrive at the D and E bracket, comprising families and individuals struggling to make ends meet with limited disposable income.
When it comes to real-money gamers, the A and B levels dominate, comprising an impressive 52% of the player base.
However, we mustn't overlook the significance of C-level households, contributing a notable 48% share. Interestingly, C-level citizens closely mirror their representation as gaming consumers, accounting for around 47.4% of the national population.
Delving deeper, we find that A-level households represent a mere 2.9% of the Brazilian populace, while B1-B2 consumers make up a remarkable 21.8%.
In essence, B-level players have a slightly larger presence relative to their population share, while A-level players surpass their representation among real-money gamers, commanding attention and influence in the gaming landscape.
In summary, for the most part, Brazilians donât seem to be spending money on gambling they canât afford to lose.
Excitement over risk
Further data backs up the idea that Brazilians are in it for the ride rather than the money.
A Globo study asking how Brazilians see online gambling had âentertainmentâ (67%) in first place, with âa business opportunityâ lagging behind at 43%.Â
Trust and positive experiences played an important role (54.2%) in attracting new players.
A separate study found âexcitementâ to be a primary driver for real money gaming, while âthe fear of losing moneyâ was the biggest turnoff, according to 47%, proof of their cautious nature.
Brazilian gamblers also exhibit a high level of risk awareness and responsible gambling concerns.
The nation, when compared to other LATAM countries, stands out in its cautious approach.
Recognising the limited chances of consistently winning substantial amounts, Brazilians generally lean towards viewing gambling as entertainment, rather than a reliable income source.
And that of course can only be a good thing, as the gambling market in Brazil threatens to reach unprecedented heights.
