All this week, the SBC Digital Summit is being held bringing together gaming leaders and insiders from around the world to discuss a number of issues facing their collective industries. The coronavirus has been one of the major components of all the topics, and a panel on sports gambling showed how much the current pandemic has impacted the market. Participating in the panel alongside executives from Apuesta Total, Vivagol and BtoBet was Betcris CEO JD Duarte, providing invaluable insight into the current state of affairs, and what will happen once the recovery process can begin.
The panel, titled “The future of Latin American sports betting,” was moderated by Kristal Rovira, Legal Director and Head of Research for Vixio GamblingCompliance. It was part of the massive gaming calendar that includes 140 expert speakers and more than 30 CEOs of the leading companies in the gaming sector in Europe, Latin America and the United States.
In many ways, as Duarte pointed out, the sports gambling market has been hit the hardest by the global pandemic. The entire sports world was essentially forced to call delays to their activity, which has had a significant impact not only on athletes, stadium personnel and the leagues, but on sportsbooks, as well. With no athletic competitions to provide odds for, sportsbooks have been forced to become more creative in order to remain afloat.
Also, maintaining and fostering communication with customers has been one of the biggest obstacles. “The challenge is to keep customers active. Most of our clients cannot go to the gaming halls, do not visit the internet sites, and do not read their emails. Communicating with them is a challenge,” said JD Duarte, CEO of Betcris.
“In the same way, the global situation has forced us to review our financial obligations to ensure that our relationships with suppliers and strategic partners are not affected. We are seeing how the situation is progressing in each of the economies where we operate and prioritizing the strengthening of our product offer in the face of limited sports options," he added.
Both Duarte and Alberto Alfieri, COO of Vivagol, pointed out that "when this whole problem was unleashed, we prepared for a massive withdrawal of funds, but fortunately it did not happen and users continue to seek entertainment despite the circumstances."
Alfieri assured that the bookmaker, which was launched in the Brazilian market at the end of 2019, “is adapting to the new reality. We are fortunate to operate only in the online space in both Brazil and Portugal, through the Bet.pt brand. We had to reorganize our internal communication structure and review all business areas, from marketing to the business alliances we have.”
"One of the points to watch when the crisis ends will be how it has affected the sector and how it has taken advantage of the opportunity to display its products online and its flexibility," reflected Alfieri.
Furthermore, JD Duarte argued that modalities such as poker, casino and bingo "are working better than ever, so the normal reaction would be to rush to add this content if one does not have it. It is also important to be faithful to the original business, to maintain an identity,” he said.
How to move forward in regulatory topics after the crisis
Many Latin American countries are working on the implementation of a regulatory framework for online gaming, including Brazil and Buenos Aires. According to the Vivagol COO, the market that advances in the shortest time will be the most successful. “Brazil seems to be closer to regulating its casinos than its online bets. The city and the province of Buenos Aires have also moved forward," he added.
JD Duarte said that the crisis has not changed the appetite to enter new markets. "I think there will be a bit more resistance, or it will be more difficult for the gaming industry as we are not a priority for governments. But I think they will focus on us to generate income," he said. Furthermore, he added that they have to come together as an industry and work together to avoid encountering obstacles along the way.
However, it has not all been bad news for the market. Duarte points out how the current situation has allowed Betcris to implement internal procedures, such as remote offices, that are working extremely well, and which will stay in place once business operations return to normal levels. The company’s headquarters, located in Escazu, Costa Rica, was under construction when the pandemic arrived in the country. The realization that remote work is feasible has allowed Betcris to keep its staffing levels intact and allowed it to redesign the office to accommodate a workforce that is structured differently, providing more open spaces and permanent social distancing protocols that still favor a unified workplace.
Duarte, who has also subscribed to the stakeholder theory in conducting operations, understands the importance of social responsibility, which spans across the workforce, the community and society. He also understands the important role COVID-19 has had in shaping business operations, explaining that, just as people need antibodies to fight the virus, businesses must have them, as well. Companies need to implement “antibodies” that will allow them to fight off the financial and personnel impacts that global disasters like the coronavirus may bring, and better prepare themselves for any situation that may arise.
Source: GMB
