GMB – galera.bet has been operating in Brazil for just over a year. How did it reach the recognition of Brazilians so quickly?
Marcos Sabiá – I would list some reasons. Undoubtedly, among so many others, the strategy of being associated with big brands is one of the important points for this quick exposure and the scope that galera.bet achieved, strengthening the brand in society. Since the beginning, we have been associated with relevant brands, such as CBF, CBB, Corinthians, Ferroviária, organized supporters and Carnaval Brahma. I would say that this association with big brands was one of the important strategies, as they lent us a bit of their reputation and gave us the opportunity to reveal a little bit about galera.bet.
In addition, I would list the reason why we have a leading global brand associated with galera.bet. Our majority shareholder is Playtech, the world leader in gaming technology. Undoubtedly, the user and all those who surround our galera.bet ecosystem perceive a partner with the reputation of Playtech is fundamental and endorses our work.
And last but not least, it is the demonstration of seriousness and the intention to build a long-term project in Brazil, which has always permeated the actions of galera.bet, whether with players, partners, sponsors, sports entities, federations, confederations and fans. Without a doubt, we have demonstrated the building of a long-term relationship, associated with the promotion of an agenda of integrity, compliance and responsible gaming. All this builds in our business environment the seriousness and reputation that we expect and reinforces in the player and in all those who build a relationship with us the tranquility that they are in a relationship with a serious company like galera.bet.
You commented on the Brazilian Championship, the CBF and the Brazilian Basketball Confederation. What do agreements of such magnitude represent for galera.bet?
It is crucial for us to be associated with major events, major confederations and major brands. From the beginning, realizing that for both of us it is an honor to have relationships with these entities, in addition to organized supporters and relevant football clubs, at the same time that it is important for them. This lends us credibility, especially at this time when we are building this space and positioning the brand in the market. For us, it has been crucial and will continue to be so, as we have a long-term project with these major players. And we have seen the fruits of this both in credibility with our users as well as major stakeholders, agents and operators in this market, whether public entities, government entities, media agents and other actors who participate in our business.
What other sponsorships are in place and bringing good visibility to galera.bet?
I'm at an event hosted by one of our sponsors, the Brazilian Basketball Confederation. It is an honor to be in the shirt of the Brazilian Basketball Team as a master sponsor, as well as our relationship with the CBF, as sponsors of the Brazilian football Seria A torunament. In addition, we are sponsors of Ferroviária, from Araraquara, one of the most important clubs in women's football. We have our brand stamped on the Ferroviária shirt, which already has Libertadores and Brazilian titles. It is an honor because Ferroviária represents what we bring in terms of diversity and presence in women's sport, already with a history of sponsoring the Brazilian Women's Championship and the women's Corinthians.
It is very enriching to demonstrate that our values of diversity are expressed in these sponsorships. Today we are sponsors of more than 20 supporters organized in Brazil and we are proud of this relationship in which we seek governance, integrity and transparency. We know that we provide these supporters with the opportunity to relate to the sophisticated business environment, which brings them gains in efficiency and management.
In addition to the large supporters of the main clubs, we support the National Association of Organized Fans, the Collective, Canarinhos LGBT, which also represents a very important banner of diversity and the fight against homophobia. We also sponsor the Allianz Park and Neo Química Arena stadiums, where we have our brand stamped and boxes. All these sponsorships go through media instruments and this is essential for our business, as well as a massive presence on social networks.
We try to build our strategy by not only seeing the strength of the brand we are associating with, but mainly our core values, our purposes and what we believe in. Therefore, each of these sponsorships is not only a concern for brand exposure and sales, but for the promotion of values that we believe are very important here at galera.bet.
You have actively participated in discussions about the regulation of sports betting in Brazil. How do you evaluate the grant fee of R$ 30 million for five years and 15% tax on the GGR? Is it suitable for the country profile?
We have actively participated in this process because we firmly believe that the regulation will be extremely beneficial for Brazil. Large business groups – like ours, which are part of Playtech – know that regulation is necessary so that we can have a business environment with clear and transparent rules, which promote a sustainable business in Brazil and based on principles such as the promotion of responsible gaming and combating money laundering and the illicit origin of funds. So, we are enthusiasts of regulation. Thus, on the issue of the cost of granting and taxation on GGR, there is a very intense discussion taking place not only from the point of view of galera.bet with government entities, in which we have tried to participate in a very transparent and republican way, but also through the National Association of Gaming and Lotteries, of which we are founding members. We are enthusiastic about this collective action, which demonstrates that collectively the market wants to build robust regulations that bring legal certainty to those who want to work in Brazil.
So, what can we say about granting and taxation, we try to associate, both at galera.bet nd in the Association, the premise that we need regulations that can bring good operators who have the capacity to operate this business, which involves millions of people and a national passion. It is an activity that represents not only the money that people will deposit to seek entertainment, connection and integration. We are talking about the trust that people place in bookmakers and understanding that those odds and bets will be in line with what they expect and that there are clear rules and that people will be treated as a consumer under the rules required in the country.
For this reason, we have strongly encouraged this discussion to be as serious as possible and I look forward to having a grant that is relevant, so that large players that are capable of honoring their commitments to their users, to the sponsored and with the Brazilian State. As for the tax, we have discussed the rate issue a lot by looking at market benchmarks. We know that the challenge – and even in the meeting with Minister Haddad and in other forums, we had the opportunity to talk about it – is great and these percentages, the combination with the grant value and the technical requirements in the sense of demanding qualification from the companies that have platforms and systems that are safe and consistent with the size of this operation.
All of this always needs fine-tuning, because from international experience we know that regulation cannot be lax to allow illicit or bad operators to continue to exist. We need a firm, robust regulation that brings solid requirements. At the same time, we cannot have taxation and strict technical requirements that do not promote the sector's competitiveness and competition and encourage informality. It's important to find that fine balance.
And that balance seems to be going well. The government has already highlighted on several occasions that companies that do not qualify will not be able to sponsor clubs and championships or even advertise in Brazil. Is this also market clearance?
Undoubtedly. And this process is essential. It will be beneficial for users, who will have serious bookmakers that they can trust with their funds. And also for competition, which will require everyone to respect market rules and combat money laundering and the illicit origin of funds, as well as deleterious practices in the market. Not to mention for the country, since it will require the collection of taxes and the generation of formal jobs in Brazil, transfer of technology and qualified labor. All of this will enrich the sports ecosystem in Brazil and this will come with regulation, which needs to happen as soon as possible.
Those who do not want to or who cannot meet the requirements do not operate in Brazil and those who operate illegally are opposed in a very clear way by public entities so that we can create an ecosystem where serious companies remain, with users who have security, to that the market grows and generate all the positive consequences, be it in the generation of jobs, income, tax collection, technology transfer and development of a still new market in Brazil.
The process is underway, but the government talks about curbing other verticals on websites other than sports betting, such as casino and live casino. How do you see this issue? Will it be a difficulty for bookmakers?
We know that in a pragmatic way, even thinking in terms of international benchmarks, the great economies of the world regulate all online gaming in order to have a business environment where not only sports betting, but games have a clear and generate everything we talk about. We know that we need to be mature and understand that there is the complexity of being a new market in Brazil that needs to break stigmas and prejudices. I see that it is very important that we, as a society and opinion makers, move towards demonstrating that the entire gaming environment, when regulated, brings a series of positive externalities and positive consequences for the country. It would be important for us to move forward in this agenda, in a mature, serious manner and with clear regulations. It is always important for us to be able to understand the political environment we live in and the idiosyncrasies of Brazil and, thus, be able to move forward.
That's why, at galera.bet, we talk so much about integrity, transparency and compliance agenda. Because the way to combat prejudice and clarify what may still exist in the gaming environment will necessarily be deconstructed from the moment the companies and agents involved demonstrate their seriousness and commitment to responsible gaming and the generation of value for society as a whole and for the entire business environment that surrounds it.
Source: Exclusive GMB
