This July, Paris will become the host of the world’s largest sporting event: the Olympics. Over 10,000 athletes are expected to compete in 48 events from July 26 to August 11, 2024, representing a vast array of opportunities for the sports betting industry, which is currently experiencing significant growth in Brazil.
Since the enactment of Law No. 13.756 in 2018, Brazil has been consolidating as one of the most promising markets for gaming and betting, reaching the 4th position in 2024, according to data from IBIA, H2 Gambling Capital, and IBJR. Data released by the Central Bank of Brazil indicates that Brazilians moved around R$ 54 billion in betting platforms from January to November 2023.
A recent survey conducted by Datahub reveals that, from 2021 to April 2024, the sports betting market grew by 734.6% in Brazil. The study also indicates that in the first four months of this year alone, the same number of companies were opened in the sector as existed in 2022 (79 companies).
Amid the exponential growth of the sector in Brazil, the Olympics stand out, being the third most popular event for betting worldwide, only behind the World Cup and the Super Bowl, according to NSOFT, a Sportradar company.
The Olympics offer an unparalleled opportunity to combine passion for sports, engagement, and a sense of participation and patriotism with the entertainment and excitement provided by sports betting. The event represents the most democratic of competitions, with various events for all audiences.
Although data on the volume of bets during the Tokyo Olympics is uncertain and dispersed, it is possible to project this increase by comparing it with the other two most popular events: the FIFA World Cup and the Super Bowl.
For Super Bowl LVIII, held on February 11, 2024, the American Gaming Association (AGA) estimated that Americans wagered US$23.1 billion on the final game of American football.
Ranked first in popularity, the 2022 World Cup in Qatar saw bets amounting to R$ 185 billion. The World Cup in Qatar experienced an approximately 65% increase in betting volume compared to the 2018 World Cup in Russia, according to statistics from the British multinational bank Barclays.
The sports betting industry continues to develop, improve, and mature year after year, especially with the opening of new markets and the regulation of ongoing operations. Consequently, with each major sporting event, growth in revenue and the popularity of sports betting is expected, particularly with the positive peculiarities of the event for bettors:
* The Olympics present a wide range of sports and events, offering numerous betting opportunities. From popular events like basketball and athletics to niche sports like fencing and archery, there are options for all types of bettors.
* The Olympics offer a variety of proposition bets, such as predicting the total number of medals a country will win or whether a specific athlete will set a new world record.
* The high diversity of parlay bets allows bettors to combine multiple bets into one, increasing the potential for winnings and the attractiveness for bettors.
However, the magnitude the betting market can reach in 17 days of competitions should prompt substantial caution in the industry. Beyond being a stage for promoting peace, integration, and unity among countries, the Olympics also showcase the integrity, ethics, and harmonious development of humanity through sports. It is essential to ensure that all competitions are conducted with fairness and true athletic excellence.
Combating match-fixing is a challenge that must be taken seriously by betting operators, in collaboration with event organizers. This concern is heightened by the variety of events that comprise the Olympic Games, which can make it difficult to prevent and combat match-fixing.
The unpredictable nature of the Olympics, with many athletes peaking at the right time or delivering unexpected performances, leads to greater variation in betting outcomes. This unpredictability can make betting riskier compared to more frequent sports leagues, representing a risk for both the operator and the bettor.
To address this, the IOC has relied on IBIS (Integrity Betting Intelligence System) since 2014, which closely monitors the games to detect any suspicious activity or events related to sports betting.
In its extensive network, IBIS collaborates with International Federations, national gambling regulators, operator associations, and the betting operators themselves. All these actors have access to an intelligence platform where they can exchange information with sports organizations and event organizers.
In this scenario, operators in Brazil must maintain constant vigilance, active and transparent communication with Brazilian authorities (both sports and betting), cooperation in investigations of suspicious activities, promotion of responsible gambling, responsible advertising, and the implementation of robust compliance and anti-money laundering programs.
While the Olympics bring great business, investment, and revenue opportunities to the sports betting sector, the magnitude of the event and its peculiarities also demand greater responsibilities from operators.
The success of the gaming and betting industry lies in the public’s positive perception of the activity, achieved through the sector’s efforts to provide safety, honesty, reliability, and transparency to bettors and society. The 2024 Olympics could be a watershed moment both in terms of revenue and in building a good reputation for operators.
Filipe Senna Goepfert
Lawyer, Master in Gaming Law from the Brazilian Institute of Teaching, Development and Research (IDP), Partner at Jantalia Advogados, author of the book “Regulação da Sorte na Internet” (Regulation of Luck on the Internet).
Anna Carolina C Carneiro Bello
Lawyer, Master in Legal-Political Sciences from the Faculty of Law of the University of Coimbra, Partner at Jantalia Advogados, member of the Association of Women in the Gaming Industry (AMIG).
Source: GMB