Rei do Pitaco (RDP), Brazil’s leading fantasy sports operator, is officially transitioning into the country’s regulated sports betting market. Founded in 2019 by Kiko Augusto, RDP has dominated the fantasy sports space, capturing over 90% of the Brazilian market. Backed by $39 million in investments from prominent firms such as Bullpen Capital and Globo Ventures, RDP has now acquired its license to operate as a sportsbook, marking a significant step in its growth trajectory.
“Our medium-term plan was always to join the sports betting market,” Augusto stated according to Sportico, highlighting RDP’s strategy to emulate U.S. giants like DraftKings and FanDuel. Unlike many competitors that operated in Brazil’s unregulated gray market, RDP intentionally refrained from doing so to maintain favorable relations with the government. “We’re the good guys of the market,” Augusto added, emphasizing the benefits of operating in a transparent, regulated environment.
Brazil’s Betting Market: A Fragmented Landscape
While Brazil legalized sports betting in 2018, the absence of a regulatory framework allowed offshore operators to flourish. That is set to change, as the government introduces regulations at the start of the new year. The regulated market is expected to generate $10 billion in revenue within its first five years, according to an OpenBet report.
Currently, the market remains fragmented, with Betano leading at 23% and Bet365 close behind with 20% market share. However, competition is poised to intensify, with over 100 companies applying for licenses. Augusto sees this as an opportunity, stating, “There is no clear market leader, so in a regulated market, someone can establish a really good position.”
International players, such as FanDuel and MGM Resorts, are also eyeing Brazil. FanDuel recently acquired a majority stake in Betnacional, the fourth-largest gray market operator, signaling its intentions to capitalize on the market’s potential. Despite the optimism, some companies, like DraftKings and Betway, have opted to avoid Brazil due to the anticipated competition.
RDP’s Competitive Edge
RDP is banking on two key advantages: its deep connection with Brazilian culture and its extensive user base of eight million fantasy sports players. The company’s app, designed by Brazilians for Brazilians, incorporates features tailored to local preferences, such as detailed soccer statistics. This localization gives RDP a unique appeal compared to global operators.
Moreover, Brazilian bettors predominantly focus on local soccer, with 90% of bets placed on domestic matches. Augusto noted that even e-soccer, where gamers compete in FIFA, ranks higher than international sports 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 explained.
RDP’s strong brand presence further bolsters its position. Despite not yet offering sports betting, a survey conducted by a major Brazilian media outlet ranked Rei do Pitaco as the seventh-most popular betting brand in the country.
With its newly secured license, RDP is set to officially enter Brazil’s regulated sports betting market in two weeks. As the landscape shifts from an unregulated gray market to a structured framework, companies like RDP aim to carve out 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 world’s most dynamic betting markets.