“Brazil is not sleeping anymore, it’s very much awake” – Ivo Doroteia, CEO, Play Book
Taking place at the SiGMA Americas-BIS conference in S?o Paulo, the first panel of the day takes an in-depth look at the global expectations for Brazil’s thriving gaming sector.
Roberto Regianini, CEO for FBMDS kicks things off with a quick look at the expectations for a regulated market catering to a global industry in Brazil. With 230 million inhabitants – 150 million of which are smartphone users, Brazil’s digital industry is growing 30% a year, he says.
Opportunities for job generation, roadblocks, and future growth
The conversation turns to the opportunities surfacing in Brazil as it moves towards regulation. “People say Brazil is a sleeping giant – but Brazil is not sleeping anymore – it’s very much awake,” chimes in Ivo Doroteia, CEO of Play Book.
There is a huge opportunity for the industry, Regianini goes on to say. Having worked in this market for several years he explains that we can see development in several areas, including consumer behaviour. There is evolution, Brazil has moved closer to other markets.
We know execution is crucial, we have opportunities but we also have difficulties. We have a thriving technology sector in Brazil – but the problems we face are with the execution. It’s important to find local people to support us in this, so that we don’t lose clients when implementing regulation.
Without local support, he concludes, it’s very difficult for Brazil to go a step beyond.
Taking this point further, Regianini asks – What is the cultural understanding and adaptation of other markets that are necessary in Brazil and how does it impact the future of the industry here in Brazil?
Ramiro Atucha, CEO of Vibra Gaming emphasises the importance of regulation.
In Brazil, in Argentina, and the LatAm market in general, there are people who like to gamble. They’re not waiting for regulation to arrive. They are gambling offshore. The discussion is not about whether gambling is allowed or not. The delay in regulation will only help the unregulated market. Brazil is always about to regulate.
He goes on to say that if only sports betting is regulated – those who invest in regulation and seek a licence will be disadvantaged against the offshore operators.
80% of revenue comes from casinos. Sports betting is important but the main share of revenue comes from casinos. We have to remember there is huge potential but it’s still a small market, so they won’t receive the same attention from European operators. We have to consider everyone, he concludes.
Mark Crean, VP of OpenBet.
Mark Crean, VP of OpenBet agrees. He says that the dynamic in Brazil is the balance between local and global – and knowing where the division is is very hard. It’s different in each country. The way you interact with the audience is what sets you apart.
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We have people with good global products, they know how to interact locally – this is very important for the Brazilian industry. Brazil stands out in the LatAm market for the way it operates. Brazil has the opportunity to define innovation in the region. The country has strong infrastructure, innovation is at its heart.
What are the trends defining Brazil’s strong growth?
Brazil has a huge audience for football, says Troncoso. We’ve seen how the Brazilian Institute has self regulated the industry – defining the parameters for advertising so that we can continue to talk about sports betting online. It’s extremely important to generate a healthy and sustainable industry that can be maintained over a long period of time.
We also don’t talk enough about potential job creation. The hold ups with regulation means that a lot of people who would like to be working in this industry aren’t. This is more important than 2% or 3% taxes. It gives more power to the economy and generates a better job market.
Doroteia explains that,
We’ve seen a transatlantic movement towards this market, through acquisitions, mergers, and joint ventures. There are many ways to see opportunities in this market. It’s a matter of having well structured, well established plans. Companies coming in are the ones who will help us step up the market here in Brazil.
Then continuing;
Regulators also have to understand the opportunities – it’s not all about casinos and other products. We have to strike a balance so that everyone can win, he goes on to say.
Javier Troncoso, CCO for Futbolsites, our industry needs to work to be recognized as an industry that generates taxes and employment. If we don’t have good public perception it will be more difficult to compete with the regulated market.
Crean then concludes,
Sustainable business and responsible gambling goes hand-in-hand. We need to do more as an industry to get there.
