GMB - How do you assess the current moment of the sector in Brazil with the regulation of sports betting and online gaming?
Wesley Cardia - In every aspect, you can see that this is Brazil's year. The interest of everyone I've spoken with has been about the country. Everyone wants to know what's new and what's happening. On the flights from Brazil to London before the start of ICE London, the number of people we met was impressive. So, Brazil is in the spotlight.
José Francisco Mansur himself, responsible for the regulation [who left the position in recent days], said that the list of the first licensed companies will be released in July. What do you think of this stage in which the process finds itself?
How long we've waited for this! It's truly remarkable. For years and years, we've been hearing "it's going to happen, it's going to happen" and it never did. Now we have a date, the regulation is being implemented, there's the law, and the decrees are being issued. According to the Ministry of Finance, the first ones will be released in the coming days, which finally gives us the certainty that betting will operate in a coordinated, legalized, and regulated manner in Brazil.
The operators are eager for this? But are they ready?
No one is ready. Because we still don't know all the rules. So, some rules, of course, will be from the international market, others will be specific to Brazil. So, I would say that no one is 100% ready, but everyone is adapting to the new regulation.
We have 134 companies that have shown interest in applying for a license. According to Manssur, all of them should effectively submit the request. Do you believe in this quantity?
I've been saying since the beginning, back in 2022, that there would be between 60 and 70 companies. I don't believe in 134 because some of those listed there are not gaming companies; they are law firms or accounting firms that applied for the pre-license to sell their spot in line. So, I don't believe in that number of 134. On the other hand, I believe that the number of brands will be much higher because many of those that have applied and will effectively enter the market will use two or three brands. Thus, the number of brands exceeds 200.
In other words, a market that is more than consolidated based on regulation and is on par with other large global markets?
Without a doubt. Brazil is seen worldwide today as one of the major markets, and all operators, all companies, and the more than 40,000 people who were at ICE London know this. Therefore, it will be a new moment following the regulation, which will sift. Many companies currently in the market will leave, be bought out, or simply stop operating. But the big companies will remain in Brazil in a regulated manner.
Does the gray market tend to become more transparent?
I would say that the gray market has to disappear. Of course, there is no country in the world that doesn't have some gray market, but the prognosis - using a gaming language - is that hundreds will disappear.
Source: Exclusive GMB
