GMB - In 2023, Eightroom introduced a series of innovations, including launching a product at ICE London that gained momentum throughout the year. And at BIS, in Brazil, a second product. Could you summarize the success of both?
Rodrigo Alves: Indeed, a year ago, here at the same ICE, we launched Vpag Flash, a payment gateway, a financial service where we process payments for operators in Brazil. And subsequently, at BIS, we launched Vpag Wallet, a differentiated product aligned with the more specific needs of bettors. We have extensive experience in affiliate marketing. We are a company with Brazilian DNA, born almost 20 years ago, and we know the Brazilian market very well, from its inception, development, to the current stage. Therefore, Vpag Wallet, specifically, is designed with the bettor, the consumer in mind, adding value to the operator who needs players with quality, with player value.
With all the proximity to the affiliate market, what do these products represent as tools for them to work with?
It's excellent. The Wallet is an affiliate tool, where we obtain exclusive benefits for the user who registers at betting houses through our link. So, this alone is something different from what you see in the market because here we find one of those scenarios that are not so common, which is the win-win-win. Why? Eightroom wins, obviously, as a company, but the operator, the betting house, and the consumer, the bettor, also win. In this sense, we now have a base of 140,000 users and, taking data from 2023, where the player value was US$ 830, we are talking about something that is up to 10 times higher than the market average.
It is a product that adds a lot of value because for the user, for the bettor, it is a normal act to deposit and withdraw from the betting house. You are already going to do that normally and thus accumulate points that can be exchanged in a store.
The customer has Portuguese customer service, as well as an extra layer of security. When dealing with the operator, a betting house, through Vpag, you have this extra resource if you need any support. And for the VIP bettor, the one who sends us the documentation, we understand that they have a slightly higher financial capacity, so we can also offer personalized support and prizes on special, celebratory dates, experiences like attending Formula 1 or going on a boat trip in Punta del Este. In short, there are a series of benefits through the Wallet that increase the value of the user, the player value, and for the betting operator, it is a very important concentration of good users.
Eightroom is obviously preparing for the regulated market. How do you see the current moment in Brazil and what are your expectations in terms of seeing the first list of operators, which comes out in July?
Yes, since 2018, when it was legalized and from 2019, we have been closely following this regulatory process. It is clear that in 2023, things progressed, and now in 2024, everything seems to be well underway. We await the ordinances to bring the details. But, from the industry's point of view in general, the recommendation was positive. Some points have already been defined, such as the need for authorization from the Central Bank to process payments, something that Vpag already has. There are guidelines on advertising, brought by Conar, and Eightroom's marketing part is already aligned.
So, we understand that there will be many operators interested in entering the Brazilian market, although it will be necessary for foreign operators to adapt and understand how to do this. These deadlines are not for nothing, with six months for adaptation, at least three months to continue processing. So, this process that will take place throughout the year, but certainly the industry will continue to be very active in Brazil.
And regarding the Vpag tools, is everything prepared regarding the player identification issue, for example?
Yes, we already have the user identification issue well aligned with Face ID, and it is important that we always have the certainty that that user is indeed themselves. So, everything that has been proposed in the regulation, we are preparing to have aligned so that the operator knows that in addition to finding a good user value and the end customer has the certainty that a tool with facilitated use is available to them.
In other words, Eightroom and Vpag are ready for this regulated market and hoping for it to happen as soon as possible?
We are. We have been preparing for this for years and now we await the next steps regarding the ordinances, but with what we already have, we are prepared and ready to continue growing. Our history is one of significant growth and seriousness, and we want to continue bringing the good name and good practices of the industry to the Brazilian market. We understand that we are in a huge boom in the Brazilian industry and we need to be alongside those who work seriously and aim for the long term.
Source: Exclusive GMB
