Prestes Filho: How did Clarion cope with the COVID 19 pandemic? Was it possible to continue activities normally? Were there structural changes to the monitoring of gaming activities in the world?
Liliana Costa: Without a doubt, these are extremely difficult and challenging times for many people working in the international gaming industry. The Clarion Gaming brands, comprising live and digital services, have been able to grow and succeed due to the tremendous ongoing support shown by our international customers working in all sectors. Our focus is to accelerate the development of Clarion Gaming into an integrated and customer-oriented Omni-Channel service provider, which has live events as one of its cornerstones. The overall objective is to help the global gaming industry to face the challenges posed by the ‘new normal’ and to get out of the pandemic as best as possible.
As a division, we must stand side by side with the industry and recognize the extreme difficulties that certain sectors have and continue to face. It is our promise to ensure that the global gaming industry is supported, involved, and consulted regarding the future direction and opportunities created by the Clarion Gaming team and we are always available to discuss any issues that affect our customers and that we can help. After our biggest event in February 2020, ICE London, the world turned inside out, but Clarion Gaming provides intelligence through case studies, reports, general and specialized information through platforms such as iGB News, podcasts, Ampersand and many more most; without a doubt that there was a need to redirect our focus and as the rest of the world to adapt to this new reality, not only in the continuation of our activities but expanding them.
As an executive, did you imagine that one day it would be possible for Las Vegas, Macau, Monte Carlo, Estoril or Punta del Este to paralyze their activities? What will the consequences be? What were the losses?
In fact, never this way. All tourist centers are suffering a lot from the pandemic, but that's the tourist part, because we remember that in all these cases of Las Vegas, Macau, Monte Carlo, Estoril, Punta del Este or in the case of any large resort casino revenue comes from tourism, entertainment or food and the gaming part represents a reduced percentage. What we saw in this case was a much more accelerated migration from their face-to-face activities to online ones. The greatest losses of fear are in tourism and aviation. In the case of Las Vegas, with consumers hesitant to travel, the Las Vegas Strip was hit hard. With hotel discounts and a lack of convention deals, non-gaming revenue on the Strip is much worse than the 40% drop in gaming revenue. Unfortunately, the prospects for significant improvement are beyond the horizon.
Consequently, with all of this and as in any industry, the gaming industry had to adapt. I give a simple example: payments, cashless gambling and all its ramifications. Not only does a player not have to take money to and from the casino; not only does the casino have a super accurate view of the players' action so that they can be controlled correctly; not only is the transfer of funds more transparent and efficient, but cashless games can help to identify problem players in a more effective way, demonstrating to the player and management that there could be some problems with ludopathy. And, of course, the cashless contactless system is advancing faster than expected as a result of COVID-19.
Have electronic games been enhanced? Was it correct for Clarion to monitor online activities and value non-face-to-face games in recent years?
Clarion Gaming works daily with all aspects of the market, we talk to legislators, regulators, operators, providers, associations, banks, investors to better respond to your needs and cover the entire industry Spectrum: face-to-face, online, lottery, eSports, affiliates, etc. valuing all aspects, so in this aspect, our way of working or dedication has not changed ... our main function is always to listen and provide the necessary support to the industry. Electronic games were undoubtedly enhanced and we witnessed a transition and adaptation of face-to-face operations to online in all industries worldwide and of course the gaming industry is no exception. For some time now, we have witnessed a boom in online gaming as it is a preference of Millennials and the traditional casino is very dependent on entertainment; however, the technology and global situation being experienced has led online games to be a trend around the world, quickly leaving classic casinos behind. Online gambling offers many advantages in comfort, as well as free bet types and bonuses.
Online bookmakers are very popular with regulars for their variety of available games and the possibilities to enjoy different home bonuses. Although there are many sensations and a totally unique atmosphere in a traditional casino, the truth is that online casinos offer greater accessibility and are much more discreet. Due to the COVID-19 pandemic and restrictions or constraints imposed by governments, regular players and amateurs had to resort to these resources. And even many countries have had to choose to legalize online casinos. Thanks to this, more and more players discover all the benefits that online games have; they are very safe, and they really pay. However, it is always advisable to make sure that you are playing in a regulated online casino. As a result, this gaming mode has become preferred by many. That is why online bookmakers have expanded surprisingly in recent months and their customers continue to grow.
In the same way and for similar reasons, we witnessed a boom in the legalization and regulation of online gaming, because more than ever governments need this revenue from lotteries, sports betting, eSports and casinos as countries without regulation not only lose revenue but also do not have a way of controlling. Finally, many of these online platforms are integrating artificial intelligence into payment systems, registration processes and customer service. This gives you the feeling of interacting with real people and offers a feeling of greater security. Something fundamental in online games.
Whether to provide the regulator with the information necessary for safe regulation or to position a start-up, Clarion Gaming remains undoubtedly the safe source for study, information and networking.
Which countries in the world have not yet regulated the money betting games managed by the private sector? How does Brazil appear in this scenario? Are there prospects for international investors regarding gaming regulations in Brazil?
With the exception of Muslim countries, virtually all countries have legalized face-to-face games of chance. Regarding online gaming, there are still countries that are now creating or improving and updating their regulations (such as the US) since many countries do not have a regulation that covers today's new technologies, as they have very old laws and even pre-internet. The gaming market across Latin America continues to emerge. Although gambling has been a strong form of entertainment, Latin America may be a mystery to some who have not followed it so closely (as has Asia) remains one of the great opportunities for large-scale industry expansion, from sports betting until the development of casino-resorts from Mexico to Uruguay, but it is in Brazil that the world has its eyes and heart. The country's natural and cultural beauty has always been an attraction, but modern entertainment is lacking. Even today, no one believes me when I say that casinos are banned in Brazil or think I'm kidding! Investors around the world are eagerly following the legalization and regulation of the gamng sector in Brazil.
As in other parts of the world, issues of taxation and regulation are the dominant factors that come to market success. These are also two of the issues that any trader is concerned with when entering a market, as well as continuing to operate in a jurisdiction. Major changes and disruptions in a market can force traders to change their trading activities or disregard a market if it becomes too challenging. The non-banking community also poses challenges that will continue until 2021. Although these individuals are not typically deterred from finding ways to play, this creates additional challenges for operators and regulators as they seek to provide a sound financial policy to ensure that games are reasonably regulated and implement anti-money laundering measures. Payment systems and cashless technologies remain a strong opportunity in the Latin American market as operators continue to unlock access to games for the non-banking community.
Brazil tends to receive more attention because of its longstanding drive to allow integrated casinos in resorts. However, discussions in 2021 on the legalization and regulation of all games and IRs with casinos will be critical in the future of investment prospects in the country. Brazil can grow as a destination in South America and the world if it provides the right tools for operators and investors.
Is legal certainty a fundamental pillar in the regulation of gaming in Brazil? It is a guarantee for investments
Without a doubt, it cannot be otherwise. No investor would be willing to invest billions of dollars in a resort casino, for example, without exceptional legal security or effective regulation that protects their investment and customers. Without legal certainty, it is very unlikely to see strong investments in Brazil or in any other country. An example of legal certainty, for example, is related to licensing. The concession system brings much more legal certainty to an operator than the authorization model provided for in Brazilian administrative law. Authorizations are, by their nature, precarious, and can be canceled by the government at any time, without reason; but a concession contract, on the other hand, is a stable link between the public agency and the operator that clearly declares mutual rights and obligations, and above all, establishes the economic and financial balance that must be maintained during the term of the concession. In the end, there is nothing more important in the gaming world than healthy regulation, whether from the point of view of the Government, operator, or player.
Examples of this type of tightly regulated market are the United Kingdom and Spain. Therefore, as international investors and operators seek additional sources of revenue to grow their business and Brazil can provide this opportunity, it must be a solid opportunity. And this will only happen if the right market is created that allows for strict regulation in a competitive market.
How much did the gaming sector move in 2021? Is it a growing market?
The global betting market is estimated to have reached a value of around US$ 565.4 billion, growing at an annual rate of 5.9% until 2022. The size of the global online betting market is expected to reach US$ 127.3 billion by 2027, registering a CAGR of 11.5% from 2020 to 2027. The growing popularity of betting worldwide and the freemium model in online gambling are among the potential opportunities that are likely to unfold in the coming years. Increased smartphone adoption and easy access to casino gaming platforms are currently driving the market. Factors such as increased internet penetration and the availability of affordable mobile betting apps are also expected to contribute to market growth.
Electronic gaming devices (EGDs) are inexpensive to operate and easily available. These devices have built-in software that mimics the experience of a local casino. The spread of COVID19 accelerated the demand for online games. In addition, the increase in digitalization combined with secure digital payment options are also some factors that contribute to the growth of the online betting market. The market is also expected to gain momentum due to the increased use of digital currency and the websites provided by companies for betting and gambling.
What are the technical congresses and meetings of the gaming sector scheduled by Clarion for 2021? Will any activity be carried out with Brazilian partners?
Absolutely, we have many surprises and work for 2021, always with our Brazilian supporters and collaborators! We are best known for being the organizers of the largest and most complete gaming event in the world, where the entire industry meets annually - ICE London - which has over 40,000 visitors and almost 600 exhibitors as well as +100 speakers at our conferences, seminars, and academies in one week. But ICE is not just 1 week, it is 365 days a year. ICE events and initiatives have always been side by side with the global gaming industry and now, more than ever, we are committed to continuing to be a driving force for the success of our industry. With so much change going on, no one can afford to stand still, and neither can we ...
We designed a completely new way for the market to gain the critical business insights it needs to stay at the forefront - and we started with ICE Engage. This will be a series of content from various media divided into themes that combine elements of iGB analysis, data and webinars with Clarion Gaming connections, events, and virtual lectures to obtain an in-depth analysis of all aspects of the industry. ICE Engage runs throughout 2021 and each series will have a vertical, topic or subtopic of the global gaming industry and provide insights in a variety of formats, such as: Reports, interviews, exclusive data, videos and Webinars, debates and / or tables live rounds and networking sessions. It is worth noting that our focus on sports betting in March, eSports in April, casino in May, emerging markets with a strong focus on Brazil in June. I invite all to follow and visit our calendar at https://www.icelondon.uk.com/ice-engage and collect the most up-to-date information and training at an international level from the future of technologies, market verticals, affiliates, control , regulation and more.
Source: Luiz Carlos Prestes Filho – Executive Director of Tribuna da Imprensa Livre newspaper
