Clarion - Could you give an overview of Sportingtech's history and activity in Brazil?
Jhuana Lamas - We've built a very strong reputation in Brazil, we've put a lot of emphasis on the market, and we're laying solid groundwork for when the regulations finally get the green light. As we continue to serve long-standing partnerships with leading operators in Brazil, the emphasis remains for us to continue to expand our content portfolio, focusing on partnerships with local providers, which we have already done a lot.
We are delighted to have the opportunity to partner with operators, combining our technology with their experience in the local market to create an attractive proposition for Brazilian players.
From the point of view of platform and content, what should operators be aware of in terms of player preferences in Brazil?
The Brazilian population is known to be fanatical about sports and this translates into their betting preferences. It's no secret that Brazil is a football-crazed nation, given its deep year-round coverage in domestic cups, leagues and other competitions. Not to mention the great patriotism when its stars wear their national yellow shirts. Outside of football, basketball is incredibly popular thanks to the success of the country's basketball team. Sport is also a popular betting proposition thanks to the number of events per season and available markets and data.
MMA has exploded all over the world, and Brazil is no exception. With several Brazilian fighters becoming champions in the UFC and other organizations, Brazilians have a rich and successful history in the sport, and the Brazilian public takes great pride in the success of their compatriots.
Finally, eSports is growing at a rapid pace in Brazil, with CS:GO being particularly popular. We are seeing eSports quickly becoming a key component within an operator's online offering. Neymar is a big fan of CS:GO and was spotted at this year's Intel Extreme Masters, the biggest CS:GO championship in the world. Having the backing of the biggest star in Brazilian football bodes well for eSports as the sports betting market is regulated.
It's been a long road to regulation, and it looks like we're approaching the final stretch. How do you see regulation transforming the Brazilian market in the coming years? What opportunities will open up and what new challenges will operators face?
Should regulations have a positive impact on the Brazilian market, the government is certainly leaving no stone unturned in ensuring a competitive and secure environment. Operators will need to have a significant presence in Brazil, which in turn will drive an expansion of existing teams or the creation of new ones, meaning that major international operators with the flexibility to handle these requests, or local operators that already have the infrastructure to serve, will flourish.
What is the importance of the market that Brazil will become globally? Do you see the proposed tax plans encouraging a high level of competition in the marketplace?
Everyone in the sector is waiting for Brazilian regulation, it will certainly be one of the most prominent markets in the world, with revenue expected to reach US$ 1 billion. Of course the taxation proposals are a big talking point. The newly formed Brazilian Institute for Responsible Gaming (IBJR) has raised concerns that the strict tax regime is deterring international companies from investing in the new Brazilian sports betting market. We can see its point, but I believe the major operators will have the right infrastructure in place to flourish, regardless of the parameters they need to work within.
Where does responsible gambling fit in Brazil? What is the current market situation and do you see regulation changing this? How does Sportingtech support its partners in this area?
Brazil has taken a proactive approach to responsible gambling to avoid the problem other markets are facing with increasing numbers of young people gambling. As mentioned earlier, the IBJR has announced a self-regulation code for betting advertising. The aim is to reduce minors' exposure to gambling-related content. While the legislation has yet to be passed, the regulatory measures are impressive and will ensure safeguards are in place from day one. This appears to be a positive step and I would see no reason to deviate from this with any further regulations. We have specialized compliance teams and the product ensures that our offer is appropriate for each territory to eliminate any stress from our operator partners.
What will be the most important factors for operators to be successful in Brazil in the coming years?
There needs to be a clear understanding of the market for brands to thrive. Brands are only as good as the teams within them, and we are in the wonderful position of having a group of top quality experts in all areas, be it product, marketing or compliance. We are fortunate to have a highly qualified and experienced team in Latin America who are passionate about our brand. They are experts in dealing with the latest regulatory frameworks and feeding product and sales teams to ensure our platforms meet the necessary criteria. Offers need to be personalized and cater to audience tastes, which will maximize engagement. So that we can deliver the bespoke products and solutions needed, this work starts with a huge amount of research into the habits and preferences of the players themselves and speaking with our operator partners and adapting our products to their needs. No platform can afford to be one-dimensional, bettors want variation, and the sportsbook and casino verticals need to be scalable and provide ample crossover opportunities to engage users.
Source: GMB / Clarion / iGB
