SiGMA Americas started on Tuesday, 22, with a panel on the Brazilian market. Entitled “Brazil in focus: can the legalization of gambling save Brazil from its financial crisis?”, The debate brought together experts who analyzed the latest advances in the sector in the country.
The panel was mediated by Mark Thorne and had the participation of Witoldo Hendrich (Hendrich Advogados), Luiz Felipe Maia (FYMSA Advogados), Magnho José (President of the Brazilian Legal Game Institute – IJL).
Brazil is one of the most targeted emerging markets in the gaming sector, due to its population of more than 211 million people, the passion for the sport and the players who habitually already practice betting. Lawyer Luiz Felipe Maia cited the recent progress of the issue in the country.
“In recent months, we have made considerable progress. Recently, we had a presidential decree in which the BNDES was designated as responsible for leading the privatization process for sports betting under the coordination of the Ministry of Economy”, commented Maia.
And he continued: “this process is now part of the government’s priority agenda and must run fast. In the coming months, we expect that BNDES will already have specialists hired to carry out regulatory and economic studies to define a concession or authorization model. Next year, we hope to see the regulation and licensing process ready. “
Situation of the casino segment in Brazil
In addition to sports betting, Maia commented on the lobby for the return of casinos in Brazil. “We have seen progress in the issue of casinos with a group formed within the government discussing the issue. A committee debating various issues for the development of tourism in Brazil, including casinos. They are discussing the ideal model of casinos in Brazil. In Congress, too there is this debate “, he said.
Witoldo Hendrich also reinforced that the matter is gaining momentum and being analyzed within the Federal Government. “What seemed forbidden to be talked about in the Government, we discovered that it was already being talked about behind the scenes. This was made public at a ministerial meeting, where we can see people concerned with this type of economic, social and tourist activity”.
However, Hendrich was against the possibility of releasing casinos just to leverage national tourism. “The lobby in Brazil is that the casino is an attractive pole of tourism and not an economic activity as a whole. I would like to see this move towards a scenario where all types of casinos were legalized and not just integrated into resort structures. ”, He stressed.
For Hendrich, “the fear I have is that the only goal is to attract tourists. People come to Brazil for a walk, the casino is a lot more fun, I don’t think it’s a distinctive trait between traveling to Maldives or Fernando de Noronha. But any advance is welcome. If we walk to the resort, so be it. I think we lose in employability and in economic terms ”.
Gambling market in Brazil
The SiGMA Americas panel focused on the Brazilian market also addressed the regulatory process and the fight against the illegal market. The forecast of a 2017 study is that the Brazilian market may be worth up to 2 billion dollars in the first year after regulation.
“It is regulation and the tax burden that will define the size of the legal market. And, consequently, the size of the illegal market. We want good regulation so the market will work. If you have reasonable taxation, which allows the operator to have reasonable freedom to develop your product, it will work in Brazil, ”said Maia.
Magnho José warned that the country has a very large offer of illegal gambling or in the “gray area”. “Unfortunately, gambling in Brazil has been treated as a matter of habit for the past seven decades, while it is seen as an economic activity worldwide. This clandestine offer is not fought or legalized ”.
He continued: “Thanks to the work of some people, we are managing to change this scenario. We, as an Institute, defend the legalization of all verticals and types of games in Brazil ”.
Estimate for regulation of sports betting in the country
The experts also designed possible dates for the first sports bet to be made according to Brazilian law. The most optimistic view came from Witoldo, who pointed out the “second half of 2020” as an opportune moment for regulation.
“What can change the process are the necessary adjustments to the legislation approved in 2018. Depending on this study by the BNDES, we may have a change in the date. If everything happens as expected, I think we will have a bet from a company based on Brazilian legislation in the second half of 2022 ”, concluded Magnho José.
André Gelfi participated in the panel on LatAm Mergers and Acquisitions
The last panel of the day also featured the participation of a Brazilian. Andre Gelfi (Suaposta) was at the debate on “LatAm Mergers and Acquisitions: are investors interested in new markets?”, Alongside Susan Breen (Mishcon de Reya), Cristina Romero (Loyra) and Eman Pulis (SiGMA CEO).
He detailed the process of acquiring Suaposta by Betsson. “This happened last year. We finalized the agreement in November and made some impressive progress. We are prepared to launch the proprietary platform in the next few days.”
Gelfi also stressed that “at this moment, Suaposta is the only fully authorized and licensed onshore company in the country, in addition to being the only vertical operator in Brazil. Because of the existing regulations, we are at the heart of the business and, we are doing the adjustments to have the right characteristics ”.
In addition, André Gelfi told about some of the measures taken by the company on the national scene in recent months.
“We are updating our products. We are going to launch a platform for horse racing, we are consolidating our payment methods and talking to long-term marketing initiatives. We are reinforcing the value proposal for Brazil because of the partnership with Betsson, anticipating the opening of markets ”, he concluded.
