GMB – Superbet Brasil is sponsoring an event on technology and integrity. What does it mean for the company to be present at a sports event like this at such a moment?
Alexandre Fonseca – Integrity is the basic pillar of our activity. If there is no trust from the fan, and if there is no guarantee of integrity in sports, there is no betting. Betting is about trust. We strongly believe in that, and we have been playing our role in promoting events like this and trying to enrich the discussion on sports integrity in Brazil.
We know about Superbet’s efforts, both in Responsible Gaming and in integrity, but has it been difficult to take this agenda within the company to society at large?
It hasn’t been difficult. The betting segment, in a regulated form, is still very young in Brazil. Because of that, pushing this narrative and attracting popular interest to it is always a bit more complex. But I think it’s part of building the narrative within society. It takes time to educate society about Responsible Gaming, limits, and the psychological risks of gambling. This is not only our responsibility, but that of all operators: to always engage in this agenda and try to amplify the message as much as possible, so that our players understand that gambling is entertainment and should be treated as such.
You mentioned the youth of the regulated market. Could you give us an overview of these past eight months, and the surprising figures released by the Secretariat of Betting Prizes for the first half of the year?
I think it’s a success. We recently saw, as you mentioned, the figure of R$17 billion in revenue being disclosed. For me, these numbers were a positive surprise. We actually expected a slightly smaller market, given the size of the illegal market that still exists in Brazil. But I believe we are moving toward a moment of consolidation and major brands. You can see large operators making massive investments in media, in football as a whole, and trying to position their brands in a way that indeed frames betting as entertainment and fun, just as we’ve been saying.
I am very pleased to have been part of this movement since day zero — actually even before day zero — and to now be in a market that holds such significance in the Brazilian economy is truly rewarding.
The issue of the increased tax burden proposed by the government could drive away some operators that were considering entering the market?
Absolutely. Beyond the 50% increase, which is undoubtedly extremely impactful for the industry as a whole, the tax hike causes two effects that concern us even more than the financial burden itself. One is legal uncertainty. Businesses are conceived and planned under a given tax structure. And from one day to the next, if that tax burden becomes X plus however many percent, it generates tremendous legal insecurity.
We are talking about a market that was regulated six months ago, not 60 years ago or even six years ago. What has changed in six months that justifies a 50% tax increase? I don’t think anything has changed, nor do I believe it is justifiable. Furthermore, I have emphasized many times that every time you take a measure aimed at restricting the regulated market, you end up strengthening the illegal market.
The illegal market does not adhere to the good practices we have implemented in Brazil — such as preventing gambling addiction, raising awareness about Responsible Gaming, anti-money laundering measures, and a robust KYC process to prevent minors from gambling with licensed operators. This isn’t just about Superbet; it’s about all regulated operators.
So yes, the tax hike has a financial impact on operators. That’s a fact. Some will be able to absorb it, others will not and may eventually leave the market. But overall, the effect is one of legal insecurity and, obviously, the strengthening of the illegal market. This must be taken into consideration, otherwise we risk ending up with a regulated market that is fragile and fearful of the next six months.
The big question everyone is asking today is: over the next six months, will there be more tax hikes, more levies on the activity? To the point that in 12, 24 months, the business model no longer aligns with the plan originally devised? That is the industry’s great question mark: what will the next six months be like, what will the next five years be like, if in the very first six months of operation you already face a 50% increase?
When you took over as CEO of Superbet, your first interview was with Games Magazine Brasil and you said your goal was to lead the market. How is that positioning today, especially now that the market is regulated?
We are very encouraged by the numbers recently released by the SPA. Based on those figures, we are certainly already in the top five in the market. And we have been operating in Brazil for only one year and eight months, so it’s still a very young operation. I think reaching the market’s top five already fills me with joy. It’s a marathon, no doubt. This is not a business for one or two years; it’s a business for 50 years. We will continue with the same objective, always trying to broaden our reach.
How are the shareholders viewing Superbet Brasil’s positioning?
They are very pleased. Today, Superbet Brasil is not only a phenomenon within the Superbet Group itself but also within the industry as a whole. I think everyone is watching with great enthusiasm what we are doing, especially regarding brand positioning. It’s a different approach, one that truly aims to promote entertainment. It’s a happy brand, a cheerful brand. Our logo is a smile. That’s exactly what we try to convey — more fun, more entertainment for the Brazilian public that is eligible to play.
Source: Exclusive GMB
