Brazil's leading fantasy sports operator Rei do Pitaco (RDP) has officially entered the country's regulated sports betting market. Founded by Kiko Augusto in 2019, RDP dominates the fantasy sports sector, holding over 90% of the market share in Brazil.
With the support of a $39 million investment from renowned companies such as Bullpen Capital and Globo Ventures, RDP has now obtained a sports betting operation license, marking an important step in its growth trajectory.
According to reports, Augusto stated, "Our mid-term plan has always been to enter the sports betting market." He emphasized that RDP's strategy is to emulate American giants like DraftKings and FanDuel.
Unlike many competitors operating in Brazil's unregulated grey market, RDP intentionally avoids doing so to maintain good relations with the government. "We are the good guys in the market," Augusto added, highlighting the benefits of operating in a transparent, regulated environment.
Brazilian Betting Market: A Fragmented Landscape
Although sports betting was legalized in Brazil in 2018, the lack of a regulatory framework allowed offshore operators to thrive. This is set to change with the government introducing regulatory measures at the beginning of the new year. According to a report by OpenBet, the regulated market is expected to generate $10 billion in revenue in the first five years.
Currently, the market remains fragmented, with Betano leading with a 23% market share, closely followed by Bet365 with 20%. However, competition is bound to intensify, with over 100 companies applying for licenses. Augusto sees this as an opportunity, stating, "There is no clear market leader at the moment, so there is a chance for someone to establish a really good position in the regulated market."
International companies like FanDuel and MGM Resorts are also eyeing the Brazilian market. FanDuel recently acquired a majority stake in the fourth-largest grey market operator, Betnacional, indicating its intention to tap into the potential of the Brazilian market. Despite the optimistic outlook, some companies like DraftKings and Betway are choosing to steer clear of the Brazilian market due to expected competition.
RDP's Competitive Advantages
RDP holds two key advantages: deep roots in Brazilian culture and a massive user base of 8 million fantasy sports players. The company's app, designed by Brazilians for Brazilians, incorporates features that cater to local preferences, such as detailed football statistics. This localization gives RDP a unique appeal compared to global operators.
Moreover, Brazilian betting players primarily focus on local football, with 90% of bets placed on domestic matches. Augusto notes that even in electronic football competitions in FIFA, rankings are higher than for international sports events like the NBA and NFL. "We have the expertise—including product, pricing, trading—because we are Brazilians, and we come from a fantasy background," he explained.
RDP's strong brand influence further solidifies its position. Although it has not yet offered sports betting, a major media survey in Brazil ranked Rei do Pitaco as the country's seventh most popular betting brand.
With its newly acquired license, RDP will officially enter Brazil's regulated sports betting market within two weeks. As the market landscape shifts from an unregulated grey market to a structured framework, companies like RDP aim to capture a significant market share. With its local expertise and loyal user base, RDP is well-positioned to compete in what promises to be one of the most dynamic betting markets globally.
