GMB: With Brazil set to introduce a sports betting regulatory framework in the next 18 months, what will the optimum model look like?
Alonso Jibaja: When a new bill authorizing legal live and online sports betting in Brazil was signed into law in December 2018, the Government was presented with a historic opportunity to bring over 200 million citizens out of the shadows of illicit sports betting and into the daylight of a transparent regulated market. The new legal framework is likely to not only provide an opportunity to protect consumers but to benefit a wide range of stakeholders whilst safeguarding the integrity of Brazilian sports, too.
As Fazenda, the Finance Ministry, carefully weighs its approach to the licensing and regulatory process, a key consideration will be the need to encourage fair competition practices alongside rigorous probity checks on new market entrants. By mandating each licensee to have a local presence, there is a considerable opportunity to create new jobs and stimulate the economy. And by giving operators the right operating conditions, including moderate tax rates, revenues generated from sports betting can be earmarked for education, public safety and social security programmes, and re-invested into key areas of the industry such as responsible gambling and integrity protection.
With all of these factors working in union, it creates a sustainable platform for the sector to grow to the benefit of all stakeholders.
In 2005, Brazil was hit by the Máfia do Apito scandal. Drawing on Genius Sports Group’s integrity expertise, how can Brazil be sure to guard against match-fixing in the face of widespread betting?
The unpredictable, unscripted and dramatic nature of sport makes it the most popular form of live entertainment in the world. As a result, sports governing bodies need to be aware that certain measures must be taken to help safeguard the integrity of their competitions and protect their product from potential reputational damage. Genius Sports works with sports all over the world to do this, by providing educational workshops for players, coaches and officials, as well as cutting-edge monitoring technology to help detect suspicious betting activity and prevent match-fixing incidents.
In a newly regulated market, sportsbooks can play a central role in fraud prevention by signing memorandum of understanding and sharing vital information with sports leagues and regulators, such as inexplicable bet placements, erratic or enigmatic account activity and alarming staking levels on obscure outcomes.
With an effective, holistic model in place, sports can more confidently participate in legal sports betting and enjoy the commercial and fan engagement benefits that it offers. But protecting their integrity must come first.
Once regulation is in place, we will see a number of new sportsbooks launch. What is the key to long-term success?
Every operator has a different strategy based on the resources, strengths and weaknesses they possess. But for me, the key to success is how effectively each operator can adapt to the new market and differentiate themselves from their competitors by delivering a superior customer experience and a unique value offering.
If the betting experience isn’t unique and engaging for the customer, they will quickly return to the tried and tested operators in the market. This is especially true online, where there is strong competition amongst different websites and smartphone apps, so much so that many people have five or six sportsbook accounts.
So there is a fundamental need to differentiate right from day-one and then in the months and years thereafter, from brand voice to the UX, odds-making and marketing strategies. Often, new operators find a quick launch appealing but that can mean long-term sacrifices when it comes to control over those crucial elements. It’s about seeing the bigger picture and striking the balance so you remain well positioned for sustainable success.
On the product side, what are the main lessons that future Brazilian operators can learn from sports betting in the U.S. and Europe?
Right now in Brazil, both land-based and online sports betting have been legalised however it’s the online, via mobile in particular, opportunity which will excite those with a keen eye on the industry. A great example of this opportunity can be seen in the garden state of New Jersey, where statewide remote gaming is driving growth beyond the levels seen in U.S. states where legal sports betting is limited to on-property.
When Brazilian citizens can bet remotely whether it be from their phone live at a match or online in their living rooms they will want to have the opportunity to bet in-play. So for those with sports betting ambitions in Brazil, investing in high-quality live sports data to power your product will be of the upmost importance.
Source: Exclusive Games Magazine Brasil
