JUE 28 DE MARZO DE 2024 - 04:55hs.
Alessandro Fried, firm’s founder and Chairman

“Brazil presents BtoBet with an opportunity for further growth in Latin America”

Following the recent acquisition by Aspire Global, BtoBet is in an excellent position to further its expansion in LatAm and other international markets. In this exclusive interview with GMB, its founder Alessandro Fried talks about the company's possibilities after the operation, its presence in LatAm and the great expectations with Brazil. “The country needs a multi-vertical market with open number of licences,” he says, and adds that “regulation of the online betting industry in Brazil is not a matter of if but mostly a matter of when.”

GMB - It is inevitable to begin with the recent news of the sale of BtoBet to Aspire Global. How does the interest of BtoBet purchase arise? Now that the operation is completed, how is the work of both companies integrated from now on?
Alessandro Fried
- Through this acquisition we have assisted to the expansion of an already consolidated group which in all its elements is now at the forefront of the industry’s B2B value chain.

From our side we were looking to have a partner that would quickly grant us access to markets which we were still missing in our global footprint. On the other hand, through BtoBet’s acquisition, Aspire Global is now in the position to increase its B2B product offering to its portfolio of customers. Now having at its disposal a very advanced sportsbook platform, which is one of the most important assets in terms of market requirements, Aspire Global have a wider option for revenue generation.

Without any form of doubt Aspire Global and BtoBet will gain a significant market advantage. The group will have an incredible market coverage, with BtoBet leading the way in emergent markets such as Africa and Latin America, and Aspire Global playing a leading role in more mature and new markets, such as Europe and the US.

How would you describe BtoBet's presence in Latin America, and how important is this market within the company's global operations?
Latin America is a market we firmly believe holds unmeasurable potential. A market which until now is still underpenetrated when compared to Europe or the United States. Nonetheless, a combined population reaching into the 650 million mark, its unrivalled passion for sports, increasing smartphone ownership, and constantly ameliorating mobile-internet connectivity, together with a drive to adopt more flexible regulatory frameworks, are paving the way for the region’s speedy growth.

All in all the region has everything it takes to project itself at the forefront of the global industry, and with this in mind throughout the years BtoBet has greatly invested in adapting its advanced solutions to the local requirements. Nowadays we are proud to be considered as the primary gateway for operators seeking to enter the local market, with the company boasting a vast footprint across multiple jurisdictions in the region.

 

 

What does Brazil represent for BtoBet today and how do you assess the market in the future?
Undoubtedly Brazil presents BtoBet with an opportunity for further growth in the region. The country is widely considered, not just by BtoBet, as a very interesting prospect having all the elements in place to project itself as the largest market in Latin America, and one of the largest global markets from a sportsbook perspective. The market’s appeal has been particularly highlighted by a report published by the International Betting Integrity Asociation (IBIA) which states that within a proper regulatory and taxation structure Brazil could see a licensed market equating to upwards of BRL 2,389.2m in gross win by 2024, with sports betting equating to 95% of that market.

This market analysis coupled with the locals’ passion for sports, particularly when it comes to football (soccer), and other big local sports – ranging from swimming, beach volleyball to futsal – focalizes the market’s potential and the ripples of interest it is generating amongst operators.

Recently in Games Magazine Brasil we have published an in-depth analysis carried out by BtoBet with data on the country. There, high mobile connectivity and strong internet penetration are marked as highlights. Do you consider these to be some of the key factors for the development of the gaming industry in Brazil? How important is it for operators to understand local payment methods?
Internet usage and speed, device ownership, and mobile and smartphone connectivity are amongst the most important factors that determine the growth potential of the online betting and gambling industry for any jurisdiction. These aspects are ever more significant due to the shifting focus towards mobile gaming, and the need for service providers to deliver more flexible platforms that are able to meet the demands of the modern player on a local context.

On the other hand, whilst from a technological infrastructure Brazil fares exceptionally well when compared to other neighbouring countries, operators looking to expand in the country must be prepared to offer localised payment offerings as they are a necessity to meet player requirements. For example the boleto payment is very popular due to the tendency of locals preferring not to put the information of their credit card information online. It is thus of the utmost importance for operators to have the proper knowledge regarding the sort of payments that Brazilians use, and which effectively translate into higher conversion rates and increased revenues.

 

 

BtoBet's report also provides a detailed overview of upcoming regulatory reforms, the current market composition, and proposed tax and licensing systems. What would be the 3 main advice that you would give the Brazilian Government for its new regulation according to your experience?
What I deem to be the three main elements of a successful regulatory regime for sports betting in Brazil are:

An open number of licences: A concession based system which limits the number of licenses issued by the government wouldn’t be of benefit to anyone. One also has to keep in mind that a limited number of licenses would definitely work in favour of unlicensed operators allowing them to eat up the market share and creating an unfair standard of competition.

A multi-vertical market: The regularisation of just the sportsbook vertical wouldn’t help the local industry to thrive. Also including products and verticals such as casino, virtual sports and fantasy sports would not only allow for greater growth margins, but again would place unlicensed operators at an advantage to steal a market share from the otherwise white market.

A GGR taxation approach: As highlighted by the IBIA turnover-based markets are unattractive to betting operators and consumers alike and invariably suffer from low levels of licence applications and related market competition. Numbers at hand, in 2016 online gambling licences in the UK numbered over 200, with Spain 51 and Denmark 38 (all having a GGR taxation of 15-20%). On the other hand France had only 16 licensed operators, with Poland 4 and Portugal 2, with all employing a turnover taxation of 8-16%. All in all this is a clear indication that a turnover taxation approach stifles operator investments and subsequent market growth.

For those of us in Brazil there is a feeling that all progress is slow and does not occur with the same speed at which the global market moves. Do you see it the same from the outside? What do you attribute it to?
Regulation of the online betting industry in Brazil is not a matter of if but mostly a matter of when. For quite some time the ball has been set rolling in a bid to introduce a strong regulatory framework with the local government keen on culling all the illegal operators who not only do not provide the players with the adequate safeguards, but evade all contributions to the state. The procedure could be fast-tracked due to the impact that the novel coronavirus pandemic has had on the country, especially from an economic perspective. The iGaming industry could prove to be the ideal ailment during the economy’s recovery period, providing the government with new tax revenue streams.

Already under Aspire Global's umbrella, do you know what ideas the company has about the Brazilian and LatAm market or the specific plans in the short and medium term?
BtoBet’s plans remain undeterred. I dare say that with a company such as Aspire Global backing our operations we will further our expansion in LatAm and other regions more rapidly. We have invested heavily in these markets and we remain fully committed to maintain and further bolster our presence in the region.

I am positive that in the short term BtoBet, together with Aspire Global, will attract the interests and partner with Tier 1 or larger Tier 2 operators that identify the big potential that resides in LatAm, particularly Brazil once the market gets regularised. The combined knowledge that both BtoBet and Aspire Global have cultivated throughout the years will be an asset for all operators and will be key to achieve excellent results in the coming years.

Source: Exclusive GMB