JUE 28 DE MARZO DE 2024 - 07:24hs.
Andrea Giuliani, BtoBet’s International Bussines Developer

“Brazilian regulated gaming market would be one of the largest in the world with €1.8bn"

While moving forward strongly in Latin America, BtoBet, one of the pioneers in new technologies for online gambling operators and the betting industry, analyzes in an exclusive interview with GMB, the potential of Brazil’s market. “I truly believe that the prospect of the Brazilian market becoming regulated is only a matter of ‘when’ rather ‘if’, says with optimism Andrea Giuliani, BtoBet's International Bussines Developer.

GMB - In its recent report on the potential growth of iGaming in Latin America, there's been several references about Brazil. What opinion and analysis does Btobet make about this specific market?
Andrea Giuliani - Brazil has the potential to be amongst the largest regulated markets. According to a report by a leading auditory firm the gambling market in Brazil is valued at around $2.1 billion, which is equivalent to €1.8 billion if properly regulated. This is a value that could well make it the biggest market in Latin America and also one of the biggest worldwide.

Considering that Brazil’s population counts over 200 million people, and with its infrastructure especially in terms of its mobile penetration increasing in a consistent way, it is of no surprise that the territory generates a lot of interest from operators. I truly believe that the prospect of the Brazilian market becoming regulated is only a matter of “when” rather “if”.

Are you closely following the process of legalization of gambling in the country? It seems very slow and, at the same time, opportunities for tax collection are lost. Do you agree?
I like to refer to Brazil as the sleeping giant. Given its huge potential it comes as a bit surprising that until now the authorities have not regulated the industry, and not benefitted from the potential revenue that the industry keeps in hold. Further to this it must be duly noted that in such an unregulated scenario the black market will continue to thrive to the detriment of the whole industry, the player, and even to the Brazilian state in terms of tax revenue.

A move towards finally adopting a strong regulatory framework, like Colombia and shortly Peru, will not only safeguard the players’ interest and the investments made by businesses to operate in the country, but will also serve as the ideal opportunity in terms of jobs creation in Brazil.

In fact, the Brazilian government views the legalizing of the industry also as an opportunity to raise tax revenues and aid its financial and economic policies.

If the Brazilian government asked you as experts for advice on the first steps in order to regularize the sports betting activity in the country, what would you recommend?
Brazil has the opportunity to analyze and gain the knowledge of other successful jurisdictions on a global level. Extracting this know-how from such jurisdictions, such as Colombia and even Malta itself, could well fast track it regulatory development and place it in the ideal position to attract big names from the industry to not only launch their operations on a local level but also to consider establishing themselves in Brazil to manage their whole operations in the Latin American region.

Such a move is no easy feat, but primarily the local authorities should seek to establish a linear and simplified approach. It is essential to have one jurisdiction at a national level, one regulator, one license and one tax model.

What aspects of local customs should an operator consider if it wants to enter the Brazilian market? What points make it different from the rest of the region?
Most operators treat Latin America as one big country, when this is clearly not the case and an approach that has reaped benefits in one country will not mean that it will necessarily also work for Brazil. One thing that characterizes the Brazilian market is the passion that people have for anything related to sports, especially football and all local sports. But on the other hand if you take a close look at Mexico you will realize that American sports such as the National Football League, the National Hockey League and Major League Baseball, and even European football is very popular.

In Brazil there is also a great interest in bingo, horse racing and the state-run lottery. However, lacking legal establishments where to gamble, it is not surprising that underground gambling establishments are known to be thriving in Brazil. And in this context many players are now turning to the Internet to access legitimate gambling spaces where they can place properly regulated bets at internationally-licensed casino sites.

Therefore, it is important for operators, not only in Brazil but for all the Latam countries, to identify those elements that constitute the player preferences. Only then can they truly consider to enter each specific Latam market.
 


Can you expand the new concept that is being heard about "think GLOCAL"?
As same model that they use in other markets, such as the European market, and be equally successful. But this is clearly not the case. Whilst being global and thinking of the big picture obviously carries its own benefits, there are certain local elements that should not be ignored if you want to reap the benefits that the region keeps in hold.

Elements such internet and mobile penetration, payment methods, and local infrastructure differ from one scenario to another. In most cases it is the knowledge about these these particular local elements that could prove to be pivotal for the success of a business.

And this is what the ‘glocal’ approach is all about – having a global presence and experience does not preclude you to lose sight of all the elements that characterize the local markets. You have to think globally, but to act locally.

In Latin America, Peru and Colombia seem to be the the most advanced countries in terms of legislation. Do you agree? How do you see those markets and which other ones in the future do you consider that may join them?
Strictly speaking Colombia is until now the only white market in the whole of Latin America. However, Peru is set to introduce its regulatory framework for the iGaming industry shortly. So in terms of legislation these are the two countries that are setting the example in Latam.

However, there are other countries where regulations exist on a federal level, and which is widely considered to adopt regulation on a national level also in the short term. Mexico is the prime example.

I believe that once the Peruvian authorities regularize the market, then one should expect a domino-effect in the whole of Latin America, with other unregulated countries in the region following suite to not only bring their market on a par with neighboring regulated jurisdictions, but also to start benefitting from the revenue that the industry generates. It will be a prospect that most countries simply can’t afford to let pass by in terms of direct local investments.

How is Btobet in the market today and what are its plans worldwide and especially, for LATAM?
BtoBet’s portfolio of iGaming platforms are amongst the most innovative and technologically advanced on the market. And it is in our core believes that we use these innovative technologies to help operators to provide a more holistic user experience to their players. BtoBet is present on a world-wide scale in the iGaming industry, particularly in Latin America where it is deemed as a leader in the region boasting of a number of partnerships with local operators.

It must be emphasized that BtoBet is constantly monitoring the jurisdictional scenario, and given the size and the prospect of Brazil regulating its market, obviously Brazil figures high in our interest list.

BtoBet has in the meantime launched its White Label Certification Program, where its partners are screened and put in a position to provide White Labels to other operators. A move that will make the company’s advanced iGaming technologies accessible to a wider scenario of operators world-wide, no matter the location, market, and size of their operations.
 

Source: Exclusive GMB