Is esports Brazil’s second sport?
As Brazil approaches the imminent launch of regulated sports betting and igaming, the esports sector is poised to benefit enormously. Experts within the industry are keen to shed light on the myriad opportunities emerging in this vibrant landscape.
The Ascendance of Esports in Brazil
“I believe esports has already positioned itself as the second most popular sport among younger audiences,” remarks Udo Seckelmann, a leading figure at Bichara e Motta Advogados. “While not yet in terms of betting volume, the younger generation perceives esports with greater enthusiasm compared to traditional sports, including football.”
With unshakeable confidence, Seckelmann predicts, “In the next decade, esports may very well surpass even football in popularity.”
For a nation celebrated for its “o jogo bonito” (the beautiful game), this assertion might seem audacious. However, Seckelmann’s firm, which has traditionally represented a spectrum of high-profile athletes—ranging from surfers to skateboarders to footballers—has increasingly engaged with esports professionals. This shift highlights a growing interest from betting operators as well.
A Lucrative Market Awaits
The potential audience for esports in Brazil is vast. Leo de Biase, an esteemed veteran with over 25 years in the gaming and esports sectors, points out that Portuguese has emerged as the second most prevalent language on Twitch, following English. This influx of interest showcases Brazil’s passionate gaming community.
De Biase, who has been instrumental in introducing major esports leagues to Brazil, echoes Seckelmann’s sentiments: “Esports is firmly established in the mainstream.”
Navigating the Challenges: The Growing Pains of Brazilian Esports
Despite the burgeoning interest in esports betting, a significant gap in sponsorship persists when compared to traditional sports. Seckelmann emphasizes that while advertising slots in Serie A matches command upwards of BRL300 million, a Free Fire tournament—viewed by a larger audience—only attracts sponsorships around BRL15 million.
Marek Suchar, co-founder of esports betting platform Oddin, underlines another important consideration: “While Brazil boasts a youthful and engaged population, their spending capacity remains relatively low. The average bet in Brazil is less than half that of North America.”
Moreover, Suchar elaborates on the relative immaturity of Brazil’s betting market, which began its journey into legality in 2018, albeit without a structured regulatory framework. Instances of sharp bettors exploiting delayed streams and uncompetitive odds have surfaced, further complicating the scenario.
As the new regulatory framework is set to take effect on January 1, a grey area remains around the official recognition of esports as a sport. However, it is widely recognized under Brazilian sports ministry guidelines as qualifying for this status. Seckelmann notes, “While this issue lacks definitive clarification, the consensus leans towards esports being categorized as a sport.”
Key Titles Driving Esports Betting in Brazil
A crucial aspect of market development lies in understanding which games resonate most with Brazilian bettors. De Biase points to Free Fire as “the game of the people,” although it has yet to establish itself as a leading betting title. Classic titles such as Counter-Strike and League of Legends continue to thrive alongside Ubisoft franchises like Rainbow Six and Valorant.
Recent data from Loadout Esports & Gaming reveals that Counter-Strike captures the attention of 7% of viewers in the LatAm region, indicating its significance as a betting title in the esports domain.
Suchar notes that titles such as eFootball could emerge as pivotal in the Brazilian market, suggesting that the nation’s affinity for football still translates into the esports realm. Loadout’s data reinforces this notion, showing that 95% of esports viewers also follow football, far exceeding the crossover with American football fans in the U.S.
Esports: Brazil’s Emerging Second Sport
In the broader context of Brazilian sports, football’s dominance leaves little room for a clear secondary sport. While interests in basketball and volleyball exist, the NFL’s foray into areas like Sao Paulo signals a desire to build a new fanbase.
As Seckelmann succinctly articulates, esports is carving its identity as the “second biggest sport” in Brazil. With traditional sponsorship opportunities in football nearing saturation, brands are seeking new avenues for investment.
Data shows that 38% of regular esports viewers are actively placing bets on these competitions. De Biase optimistically states, “I anticipate an influx of investment into the industry, which will necessitate careful management of sponsorships.”
He continues, “Traditional brands aren’t currently funneling substantial resources into esports, making this incoming capital all the more vital. My concerns earlier were more about federations and traditional sporting bodies than about betting and igaming. The support from these institutions is crucial for our ecosystem’s growth.”
As Brazil steps into a new era of regulated gambling, the foundation is set for a thriving esports market, one that promises to redefine the landscape of sports engagement and investment in the coming years.
