The debate was organized by GEDDE-MACK, a group that aims to study the phenomenon of sport as an economic activity. The proposal of the sixth meeting was to discuss the current panorama of sports betting regulation in Brazil and its economic consequences for clubs and the marketing and legal challenges that involve the sector.
Udo Seckelmann opened the debate talking about the legal understanding of the Brazilian betting market, with considerations that went from what is a bet to details about the progress of the regulatory process, tracing a legal history on the subject and stated that “Brazil is surrendering to the multi-million dollar igaming market.” He pointed out that there are still many criticisms as to the form of licensing, which speaks of 30 licenses through bidding and would make the process more bureaucratic, and about the high taxation and incidence on turnover, instead of on the GGR. The lawyer also commented on the importance of protecting the integrity of the sport, exemplifying how "the FA, in England, works to protect the market, including prohibiting individual football athletes from participating in bets."
Angelo Alberoni, Country Manager at Betmotion Brasil, one of the most respected sports betting companies in the country, gave an interesting overview of how an operator sees the market today, going through issues such as sponsoring football clubs to the behavior of online shopping in Brazil. Speaking about “Economic and legal challenges of betting companies in Brazil”, Alberoni commented that there is a possibility of growth of up to 700% by 2024 for the activity in the country, which could be in the Top 3 in the world.
“Brazil, according to H2 Gambling Capital, one of the main gambling consulting companies in the world, has the possibility to see growth of up to 700% by 2024 and become one of the Top 3 countries in terms of gross revenue with online gambling. This growth will only be well used if all stakeholders understand how the sector works, especially the State that cannot, unilaterally, decide on the best regulatory model. It is necessary that everyone involved in the market participate and contribute so that the country has the most modern legislation on the subject in the coming years.”
According to him, “specifically for companies, it is necessary to understand about the Brazilian environment, especially regarding to sports or fixed-odd bets as they were called by Law 13.756 / 18. An example is the strong involvement of football clubs, since in Serie A, 80% of the teams already have sponsorship from companies in the sector, but few, in fact, take full advantage of this investment, with few activations and only branding. This is a gradual process, and both clubs and brands will have a learning curve in the years to come,” he said.
Marco Pequeno, Director of iGaming360, an important business consulting company for the area of gaming and sports betting in Brazil, spoke about the challenges that the sector is going through, so that not only companies can attract more users to the sites, but also about the social role in the fight against the taboo to which the betting market has been subject for so many years. With small details about the brand building and acquisition process, Marco Pequeno showed in his presentation that the work of a successful operator is not simple.
“There are a number of challenges that make success in Brazil a long-term issue. With so many limitations, established brands and competent operators like Angelo's own Betmotion, it is clear that the path to success in Brazil is not a sprint, but a longest marathon,” said the director of iGaming360.
Regarding the regulation itself, Pequeno commented that he still has many doubts about how it will be. “I believe that most of the market shares these doubts. The challenge today is to find a common place between the government and the private sector, with something that is good for everyone, including the gambler, who can only gain from a regulated market. We, as operators, want a regulated market, but not in any way. We expect a regulation that allows activity to grow in the country, generating more revenue, jobs and wealth, and that takes time to find.”
The organizers of GEDD-MACK are fully satisfied with the sixth event and in the assessment of Gabriel Duarte, leader and founder of the Study Group, "the meetings are being increasingly productive. The latter - on sports betting - highlighted the importance of this market, growth trends and opportunities in the country. For us students, it was an honor to have the chance to learn a little more about the topic with experienced people who are so skilled in the subject. It was a pleasure to welcome Udo, Marco and Angelo at the 6th GEDDE-MACK meeting last Saturday (7). It was the first time that we brought these three professionals together to share their experiences and knowledge with the Mackenzie people. The first of many! "
Source: GMB
