Rei do Pitaco (RDP), Brazil’s main fantasy sports activities operator, is formally transitioning into the nation’s regulated sports activities betting market. Founded in 2019 by Kiko Augusto, RDP has dominated the fantasy sports activities area, capturing over 90% of the Brazilian market. Backed by $39 million in investments from distinguished companies corresponding to Bullpen Capital and Globo Ventures, RDP has now acquired its license to function as a sportsbook, marking a major step in its development trajectory.
“Our medium-term plan was always to join the sports betting market,” Augusto said based on Sportico, highlighting RDP’s technique to emulate U.S. giants like DraftKings and FanDuel. Unlike many opponents that operated in Brazil’s unregulated grey market, RDP deliberately kept away from doing so to keep up favorable relations with the federal government. “We’re the good guys of the market,” Augusto added, emphasizing the advantages of working in a clear, regulated setting.
Brazil’s Betting Market: A Fragmented Landscape
While Brazil legalized sports activities betting in 2018, the absence of a regulatory framework allowed offshore operators to flourish. That is about 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, based on an OpenBet report.
Currently, the market stays fragmented, with Betano main at 23% and Bet365 shut behind with 20% market share. However, competitors is poised to accentuate, with over 100 corporations making use of for licenses. Augusto sees this as a chance, stating, “There is no clear market leader, so in a regulated market, someone can establish a really good position.”
International gamers, corresponding 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 available on the market’s potential. Despite the optimism, some corporations, like DraftKings and Betway, have opted to keep away from Brazil as a result of anticipated competitors.
RDP’s Competitive 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 firm’s app, designed by Brazilians for Brazilians, incorporates options tailor-made to native preferences, corresponding to detailed soccer statistics. This localization provides RDP a singular attraction in comparison with world operators.
Moreover, 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 larger than worldwide sports activities just like the NBA and NFL. “We have the expertise—for offerings, pricings, trading—because we are Brazilians and we come from a fantasy background,” he defined.
RDP’s sturdy model presence additional bolsters its place. Despite not but providing sports activities betting, a survey performed by a significant Brazilian media outlet ranked Rei do Pitaco as the seventh-most standard betting model within the nation.
With its newly secured license, RDP is about to formally enter Brazil’s regulated sports activities betting market in two weeks. As the panorama shifts from an unregulated grey market to a structured framework, corporations like RDP goal to carve out vital market share. With its native experience and dependable person base, RDP is well-positioned to compete in what guarantees to be one of many world’s most dynamic betting markets.
