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Acquisition

CAC (Customer Acquisition Cost)

CAC (Customer Acquisition Cost) is the average amount a betting operator spends on marketing and affiliate commissions to convert a visitor into an active player, calculated by dividing total acquisition spend by the number of new players won in a period — the core metric for judging whether the cost of bringing in players is sustainable against the value they generate.

Customer Acquisition Cost · cost per player

How it's calculated

CAC (Customer Acquisition Cost) is total acquisition spend — paid media, affiliate commissions, marketing tools and the portion of the growth team dedicated to it — divided by the number of players won in the same period.

CAC = total acquisition spend ÷ number of new players

Example: an operator spends R$ 300,000 in a month across paid media and affiliate commissions and ends the period with 5,000 new sign-ups. Registration CAC is R$ 300,000 ÷ 5,000 = R$ 60. That number alone hides the metric that actually matters for the business.

Registered player vs depositing player: the distinction that changes everything

Not every sign-up becomes an active player. Of the 5,000 registrations above, if only 1,200 completed KYC and made a first deposit (FTD), the real CAC per depositing player is R$ 300,000 ÷ 1,200 = R$ 250 — more than four times the registration CAC.

Reporting registration CAC in isolation is the most common way to artificially inflate a channel's apparent efficiency. A channel that delivers cheap sign-ups but a low FTD rate — low-quality traffic, poorly targeted bonuses, KYC friction — can end up with a worse depositor CAC than a channel with a higher cost per click but cleaner conversion. Every media budget decision should be made looking at FTD CAC, never registration CAC.

What's a healthy LTV:CAC ratio?

The practical benchmark used in digital acquisition, including iGaming, is keeping player LTV at least 3 times FTD CAC (LTV:CAC ≥ 3:1). Below 1:1, the operation loses money on every new player. Between 1:1 and 3:1, acquisition only holds up if payback — the time it takes a player to "repay" their own CAC in generated NGR — is short enough not to strain cash flow.

This ratio needs to be calculated per channel and per campaign cohort, not as an overall average. An affiliate channel with R$ 180 CAC and R$ 900 average LTV (a 5:1 ratio) can coexist with a paid media channel at R$ 400 CAC and R$ 700 LTV (a 1.75:1 ratio) without the blended average revealing that the second channel is on thin ice.

Why CAC rose after regulation

Law No. 14,790/2023 and the SPA's complementary rules restricted the format, content and channels available for betting advertising in Brazil — bans on certain advertising appeals, mandatory disclosure for influencer content, and stricter rules for sports sponsorship. The direct effect is fewer compliance-safe channels competing for the same audience, which pushes up cost per click and per conversion on the channels that remain.

ChannelCAC levelCharacteristic
SEO / organicLowFixed content cost, slower to scale
Affiliate program (CPA)MediumVariable cost, paid only on qualified conversion
Google Ads / paid searchMedium-highCompetitive auction, restricted to compliant terms
Paid socialHighContent restrictions push up cost per click
InfluencersHighRequires disclosure and prior approval, longer cycle

Operators that relied on generic paid media before regulation tend to shift budget toward affiliates and SEO — channels where cost is more predictable and conversion, historically, better qualified.

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