GMB - What is your expectation to participate in an event like OGS organized by Clarion in Sao Paulo? It is worth considering that with betting legalization can be broken a record of public interested in participating in the meeting.
Rui Magalhães - I am aware that the new situation in Brazil and the approach of a potential regulation, to make possible the operationalization of the current law for Sporting Ports, will generate much interest in the event. My expectation is that the event will clarify both the current situation, the opportunities and challenges that Brazil faces with the current legal framework, as well as the investors who intend to operate in the country.
Could you anticipate some of the key concepts you will present to the public during your talk?
I am part of a panel discussion and together with other industry colleagues we will be discussing international regulatory best practices - Success Stories and Challenges.
What is your vision of the gaming market in Brazil and what are the main ways you should follow to mature and consolidate?
This is a question that has no short answer possible. However, I believe that the current law does not solve the challenge of online gambling in Brazil as it only deals with the sportsbook segment and has a serious problem concerning the fact that it is a lottery law, whose game mechanics is different from the one that constitutes sports betting. Complex and creative regulation will be required to make such a law operationally and even legally viable. In terms of paths, Brazil already has two well-worked and advanced bills (186 and 442) that should be the legal basis for legalizing gambling in the country, including sports betting and other segments. Without a good legal basis, illegal gambling will continue to exist and thrive. This is certainly not the objective of the Brazilian legislator that must respect three fundamental primates: the protection of the player; the dynamization of the formal economy and the collection of taxes.
From your area, what support could you make for the regulation that the Ministry of Economy develops for the betting market? What would be the top 3 advice you could give?
My advice to those who are legislating and regulating the sector is to be properly informed so that they can make informed decisions. Brazil will be one of the last countries worldwide to regulate online gambling. There is much experience of good, and less good, practices that should serve as an example to the Brazilian legislator. There is a lot of technical and operational knowledge. But there are also many interests that often detract from the rigor and meaning of decision making. If the above mentioned primates are to be respected (player protection that includes combating crime, boosting the economy through investment and high value-added employment and maximizing tax collection) then current law is no good. However, the bills 186 and 442 in themselves contain good options and good practices that would put, I have no doubt, Brazil as a world power in this industry only surpassed by the United Kingdom and, potentially, possibly Japan.
Compared to the rest of Latin America, do you think Brazil's advances in 2019 were fast or slow for what the market demands?
Advances in Brazil are almost nonexistent. In practical terms the gaming industry continues to operate outside the law and any regulations. Many Latin American countries have effectively regulated online gambling. This is not the case in Brazil.
Do you believe that the opening of the lottery market in Brazil with the grant of LOTEX to the IGT / SG consortium is great news for private companies that want to come to the country and invest?
I believe it was a feat to have finally finished the LOTEX saga. Right now, there is a lot of expectation on what will happen. We must not forget that Brazil is a country of continental scale and that the challenge is huge. It is neither good nor bad news. It's a fact. Let's see how it develops. Surely there will be a lot of interest in continuing to follow the future of LOTEX and the products that will actually be operated, namely scratch cards.
Can you imagine 2020 as the year of Brazil's big takeoff on iGaming?
It could be, but I don't think 2020 is still a big year for Brazil in the iGaming industry. I would 'bet' that 2020 will be a year in line with 2019 and the previous years in which industry and current operators and market entrants will keep their status quo, mindful of regulatory developments. I hope, however, to be mistaken and that Brazil will be able to get out of this legal and regulatory mud where it has remained for too many years.
Source: Exclusive Games Magazine Brasil
