The public hearing proposed by Congressman Evandro Roman to discuss with representatives of companies the regulation of the online betting sector in Brazil will be on Wednesday, May 22 at 14:30 in Annex II of the Congress, in Brasilia. The list of invited speakers already includes 23 specialists (there are several who still have to confirm their presence) but it is speculated that the number could grow this week.
Francesco Rodano, the former Italian online gaming regulator, has joined Playtech’s executive management team as Chief Policy Officer in 2016. He has more than 18 years’ experience working across a number of online businesses with nine years at AAMS, the Italian gambling regulatory authority, where he was responsible for managing and leading the country’s online gaming regulation. Since 2012 Rodano has been a member of the European Commission’s Group on Gambling Services, where he supported a draft of the formal initiatives recently adopted by the Commission.
GMB - What is the feeling of being called by the Brazilian Congress to expose your knowledge? Why did you agree to participate?
Francesco Rodano: I was very honoured. As a former government official myself – I was in charge of the online gambling regulation in Italy for 9 years – I have a profound respect for the political institutions and appreciate the importance of a constructive dialogue among all the stakeholders of an economic sector. Online gambling has been available for 25 years, most of which without any rules or control, and has developed into a multi-billion global business. Deciding to regulate it, which in my opinion is always the best option for a government, has quite complex and technical implications, which are hard to grasp for anyone who is not an insider of this industry. I think that it is commendable that the Brazilian congressmen, who hold the legislative power, wish to learn more about this sector before making political decisions about it.
To try to address this complexity and explain in a very simple way how online gambling works and why it is beneficial to regulate it, some time ago the Remote Gambling Association, whose over 30 members are all the major gaming companies, prepared a short video in Portuguese, which can be seen here.
As regards myself, I gladly accepted to participate because I see a massive opportunity for the Brazilian government to finally control and manage a sector that is so relevant for the economy but currently happens entirely “underground”. At the same time measures can be put in place so to make it just a recreational activity and not a cause of harm to vulnerable people.
What do you think you and your firm can contribute with at this moment?
I dedicated the last 12 years of my life to the regulatory implications of online gambling, from both the government and the private sides. Italy was the first country in the world to establish a local regulatory framework, and we could learn many lessons, especially from our mistakes. We eventually helped other countries work on their laws, and today online gambling is regulated across almost all the European countries. Brazil has now the chance to establish one of the largest online gambling regulated markets in the world, but only if the final choices will take into account the successes and the mistakes of the past. I will be happy to tell about the global best practices in this sector, so to help the congressmen make a more informed decision.
As regards my company, Playtech, we are a supplier – probably the largest – and work with hundreds of gambling operators. This puts us in a more neutral position, since our advice does not risk to be biased by competition issues.
Do you consider this audience as a positive move? Is it a step forward or just another one of many that we have had in Brazil?
As I said, the only fact that congressmen are willing to learn more is extremely positive, in my opinion. It shows seriousness and open-mindedness, which is not always the case, especially when the political level gets more focused on generating consensus, for instance during an election campaign. I think that every initiative like this represents a step forward, particularly now that the parliamentary term has just begun and there is time to work on the best solutions.
In your view, with this audience and the new government, do you believe that the legalization of the activity is closer than ever?
Legalisation of gambling is probably an inevitable process everywhere. If you look at Europe 12 years ago, online gambling was regulated only in Italy and UK. Now there isn’t a single country that has not regulated or is about to regulate it. This has happened for a very simple reason. Online gambling already existed, but it was part of a large and uncontrolled informal economy, whose actors did not always have a good reputation, so to speak. By regulating it, governments soon found out that all the parts involved could get significant benefits: the State, by generating new tax revenues, protecting the vulnerable consumers, and keeping the crime out of the sector; the citizens, by having access to an entertainment offer in which games are fair, prizes are always paid out and a responsible way of gambling is encouraged and even enforced; the industry, by having the possibility to operate – and invest – in plain sight and according to clear and stable rules. There is also a less visible, but considerable impact on the national economy, in terms of employment, marketing expenses and sponsorships, growth of the use of e-commerce and plastic money.
Ultimately, it is just a matter of time. And this process has already started in Latin America, where, after Colombia, other governments have approved new laws, or are working on them: several Argentinian provinces, Peru, Paraguay, just to name a few. In Brazil the legalisation seems indeed closer than ever, especially after the approval of the Provisional Measure 846/2018, which represents a very important and concrete starting point. By completing and, if possible, improving it, I am convinced that Brazil is set to benefit soon from one of the most advanced and effective regulatory framework in the world.
Source: Exclusive GMB
