GMB - With what expectations do you get to the Online Gaming Summit Brazil, an unprecedented event for our market? What topics will address the panel in which you participate?
Joseph Levy - The expectation is the best possible. Events like this are important to exchange experiences, know other perspectives and follow the trends and evolution of the market. I am part of the panel that addresses the online gaming offer already existing in Brazil, among them horse racing.
Is this kind of knowledge-sharing meeting something that the country needs to prevent the population from being misinformed about the false "dangers" of the gaming sector?
The gaming market is very competitive and professional, an important source of revenue and development of the entertainment industry in any country where gambling is regulated. This meeting brings clarification and quality information through reliable sources, companies and actors who want to contribute to the development of the activity in a responsible and legal way. The objective is to offer the best market practices and show the potential of gaming in the entertainment market.
Can you anticipate some of the ideas or data you will present to the public on your panel?
We will present the French experience in the horse racing market and, as from 2010, with the liberalization of the sports betting online market, business possibilities and results have increased. In addition, we will discuss how PMU Brazil has brought this expertise from France and is active in the development of horse racing in the country, both online and offline. Since arriving in Brazil in 2015, the PMU has been able to reverse the 10% drop curve per year in the horse-betting movement, for a 12% growth in 2017 and which is expected to close by 8% increase in 2018. This growth in bets investment is reversed in the entire productive chain of horse breeding.
Online gaming seems today to be the fastest growing modality in the world. Why do you think this is happening? Is traditional land-based gaming business at stake?
Online betting is on the rise and mobile is the way of greatest growth potential in the short term. Currently, 62% of the total revenue generated by online gaming worldwide is made by mobile devices. This is because the audience of these games is an age group that constantly uses the mobile phone for fun and work. If we look at horse races, for example, we have a faithful, older audience, who still value physical points of sale, where they can play and socialize with friends, and another younger part that already seeks practicality with mobile devices. I believe that we will have a scenario in which the two platforms can be strengthened, taking into account the profile of its respective target audience.
How do you evaluate the progress of online gambling and sports betting at a legislative level in Brazil? Do you think that by 2019 we will have an open and regulated market?
We have followed the discussions in Congress and the rejection of the Senate. The issue of money laundering is of concern to many groups, and regulations must be made to prevent and curb the practice and punish offenders. There are still fundamental points to be able to advance, such as the destination of taxes and definition of the model that best contributes to the country's economic development. By 2019, I believe we will have a more defined scenario in this regard, but the opening and regulation of the market should take at least a year or two.
How do you think the new government led by Jair Bolsonaro will address the rest of the gaming market in the country?
The president had already signaled during the campaign that there would be a possibility of liberalization at the state level. I believe that the issue should return to the agenda during the new government, especially in the search for new tax revenues and job creation. It is important to remember that this liberation can generate more than 300,000 jobs in the country, as well as benefits to the economy and the entire tourism chain, should there be integration of resorts with casinos.
Source: GMB
