GMB - As we approach the end of the year, what emerging trends in the iGaming space are you most excited about, and how is Infingame preparing to capitalise on these shifting trends?
Pavel Fedyushin - Among the most prominent industry trends, it is, of course, important to talk about licences and regulation. Many countries across Europe are continuing to embrace their own regulated frameworks, since it is more profitable for the state to grant a handful of licences than to receive nothing in the way of tax contributions from businesses operating in an unregulated market.
However, given the size of the audience in some European countries, it is often not financially viable for small and medium operators to enter these new territories. I anticipate that many markets around Europe will increasingly be determined and divided between large monopolistic players due to this impact of regulation – rather than the common acceptance of MGA licences that we had previously.
Are there any other markets that you believe will be a key focus for the industry in 2025? If so, why?
Of course, one market that has been on everyone’s lips is Brazil. For many, there seems to be a lot of excitement. But for me, the way in which Brazil has approached its legislation is wholly unsustainable.
The first few companies that applied for licences in Brazil are large American and European entities – as a result, small and medium-scale operators are being forced out of the market due to the tough conditions of entry.
Licences cost between €5-6m each year for five years, meaning that an operator must have a minimum of €30-40m to spend on the market. Add to that a 25% tax on withdrawing funds from abroad, and it makes the market entirely unfeasible.
Since the regulations are still awaiting formal introduction, it is also difficult for iGaming brands to plan their market entry strategy. There have already been several amendments to the legislation – many brands will feel reluctant to make solid plans until formal regulations are introduced, at the risk of being non-compliant.
How do you see the structure of the licensing system for operating betting and iGaming in the Brazilian market?
The licensing structure is also one that could pose potential challenges down the line. Each licence permits three different brands – this means that if your brand has one third of the licence, you are reliant on the other two companies to act in accordance with the regulations. If one brand is non-compliant, that risks the licence for everyone.
I believe that the Brazilian government should increase the barriers to entry after a few years of the regulated market being operational, giving everyone the chance to adapt to new realities. With lower taxes for the first few years, or even a lower licence cost, this gives everyone a chance to enter the regulated market – this could then be increased in proportion to the market’s growth. But as it stands, everything is being done at once, and chaotically at that.
We have already been through this with the Ukrainian market. Large companies that operate in the market are in no hurry to adapt to the new regulations because the transition to a new licence is time-consuming, costly and complicated. All this increases the risks of developing a grey business since the entry conditions are complex and there is no predictability.
In such a competitive industry, how important is flexibility and scalability in meeting the needs of the modern player?
What differentiates us from other aggregators is that we deploy some of the best technology available on the market. This is a priority that is very important for me – my experience in IT has taught me just how important technology is in giving you an edge over the competition. This approach gives us a massive edge over the competition.
Many aggregators on the market (I won’t name names!) have been relying on technology that is 10-15 years old – but that technology is no longer sufficient to meet the needs of the modern player. It is a costly affair for platforms to revamp their technical capabilities, so they rely on crutches to integrate new functionalities. As a result, we see a lot of ‘Frankenstein’ models – where it might look like it works, but deep down, the stability and performance suffer.
And how have they addressed those needs to help the industry? What solutions do they offer?
Infingame has invested significant time and resources in developing our new Axis platform. It works faster, scales easier, has a wider functionality and is more friendly for both operators and providers.
We understand that modern game aggregators should provide not only game aggregation but also create added value for their customer. On our platform, we do this in a multitude of ways; we offer a range of player engagement and gamification features, giving operators the tools they need to drive engagement and retention with their players.
The code of our new platform is simpler and much faster too. We removed any and all crutches and replaced them with a stellar internal architecture that allows our partners to access a whole host of games in a quick, accessible fashion while also giving us the opportunity to upgrade our platform much easier.
How does Infingame analyze and decide to enter a specific market?
Our laser focus on a handful of markets has also put us in a unique position to deliver more local, personalised products to our partners. We don’t just enter a new market – we make sure that we study it well, understand the local nuances and prepare the best possible offer.
You can't enter all markets at once, nor should you. It is important to understand legal, financial and cultural dynamics – this all has an impact on engagement strategies. We take all of this into account when working with our partners across Latin America.
Source: Exclusive GMB
