GMB - What points about gaming in Brazil do you intend to include in the debate to be held at the 10th edition of the Caribbean Gaming Show?
Eduardo Carlezzo - Initially, the intention is to clarify to the foreign operator what he needs to know to make the decision to come to Brazil. Secondly, to propose a critical view on the unreachable and endless licensing process for operations in the country.
Currently, bookmakers sponsor 14 of the 20 teams from Serie A of the Brasileirão championship. What do you think is missing for all 20 clubs to partner with this industry?
Undoubtedly, the lack of betting regulation in Brazil is an impediment to the advancement of sponsorships. We urgently need to regulate this matter. Of course, we cannot fail to consider that the pandemic has had negative effects on sponsorship contracts.
Do you think that Brazilian football federations and clubs have their marketing and legal areas prepared to work in depth with the advantages that bookmakers can give them with the money they inject into the market to promote their brands?
This is a business between clubs and bookmakers that is taking its first steps in the country. As there is no regulation, we are still in the process of learning about how these relationships work, both on the part of clubs and on the part of operators. The maturity of the relationships will only come with time, but above all it needs a legal framework so that everyone knows exactly what can and cannot be done.
What do you think the effects of the regulation will be? Will the international leading bookmakers prevail, and the smaller ones will disappear? How much will the control of the illegal market influence the business of bookmakers who get a license?
The truth is that it is not possible, at this moment, to give a sure answer on this, because we do not know if the government will limit the number of licenses, something that it even announced. Now, being in the hands of the BNDES, it is not possible to know whether this limitation will be maintained. If limited, the tendency is obviously for dominance by the main operators. The illegal market, as international experience shows, will continue to exist in the country. Now, the degree of preponderance of the illegal market over the legal one will depend a lot on how the federal government will regulate this issue, both in the operational and tax aspects.
We have seen in these times that more and more Brazilians are invited to participate in events, panels, etc., together with specialists from other countries. Do you feel that the country starts to be more respected now that it moves forward to a legalized activity?
The country's representativeness inevitably stems from the size of our market and the involvement of Brazilians in football. However, for us to reach maturity and have international respectability, we must have a regulatory framework of excellence, which carries in its context all the experience that several countries have had so far, between mistakes and successes.
What do your customers or potential international clients say about the Brazilian market? What attracts them the most and what worries they about investing in the country?
In recent months, we have held several meetings with foreign operators interested in the country. However, due to the delay in the licensing process and the lack of certainty that this will happen in the short term, the investor ends up giving priority to countries where there is already a regulatory framework in force. There are many uncertainties in the air at the moment, unfortunately, and that is not beneficial to the country. It took us a year and a half, back and forth, to delegate the process to BNDES. As this issue, compared to the gigantic projects that are in their portfolio, does not seem to be among the priorities at this moment. The question is how long will it take for us to grant the first operating license in Brazil?
Is it possible that naming rights on championships, stadiums, etc. could be sold to bookmakers soon?
Unfortunately, the naming rigths business was not successful in Brazilian football. Several clubs have failed to find buyers of these rights, as numerous large companies have stopped sponsoring football clubs in the country. However, in the future, with the regulatory process ready and licenses granted to operators, and considering that globally we have seen a great commercial approach between clubs and operators, a new niche of opportunities may be opened for transactions of this nature in Brazil.
Source: Exclusivo GMB
