Lygia Rodrigues - Could you start by sharing a bit about ABRAJOGO’s mission and its importance in the iGaming landscape?
Witoldo Hendrich Júnior - ABRAJOGO was founded with the mission of comprehensively representing Brazil’s betting and iGaming market. Our goal is to integrate all stakeholders – operators, service providers, regulators, and even professionals dedicated to our industry – and ensure that we grow in a responsible and transparent manner. With the market transitioning to a regulated environment under laws such as 14.790/2023, associations like ours are essential for fostering collaboration, advocating for fair practices, and ensuring all participants adhere to the highest standards.
Recently, ABRAJOGO, together with AIGAMING and ANJL, issued a statement condemning Nubank’s actions. Could you explain the case and its broader implications?
Certainly. The situation with Nubank highlights the importance of respecting Brazil’s regulatory framework. By issuing warnings to customers about transfers to betting sites, Nubank not only overstepped its role as a financial institution but also violated a fundamental principle of the Brazilian Payment System, which prohibits discriminatory practices.
Why issue a warning against betting and not against sugar, cigarettes, alcohol, or compulsive shopping? This action by Nubank not only disrespects principles of economic freedom and equality but also undermines the legitimacy of a sector recognised by Brazilian legislation, which will play a crucial role in generating tax revenue and licensing fees – a key factor in the country’s fiscal adjustment.
As mentioned, we are particularly concerned about the selective nature of these warnings. Nubank does not issue similar alerts for transactions linked to industries with comparable social impacts. This creates an uneven playing field, discourages the use of licensed operators, and inadvertently promotes illegal activities. The repercussions of such actions could destabilise the regulatory environment we are striving to build.
How do associations like ABRAJOGO tackle challenges like these and advocate for the industry’s interests?
Collaboration is our foundation. When issues arise, we join forces with other associations, such as AIGAMING and ANJL, to present a unified stance. In the case of Nubank, our joint statement emphasised the importance of adhering to existing laws and maintaining a fair approach to all legalised economic activities. Beyond responding to specific incidents, we actively engage with regulators, legislators, and financial institutions to educate them about the industry’s nuances and its contributions to the economy.
Speaking of contributions, the betting industry is often viewed through a controversial lens. How do you convey its positive impact?
That’s an excellent question, Lygia. A regulated betting industry has immense potential to contribute to Brazil’s economy. It generates tax revenue, creates jobs, and drives innovation. Additionally, it funds sports, entertainment, and social programmes. The challenge lies in changing public perception. By promoting responsible gambling, ensuring transparency, and highlighting these contributions, we can showcase the industry as a valuable asset for the country.
Here’s an interesting fact: licensed companies open doors for professionals such as statisticians and mathematicians. When was the last time we heard of hundreds of jobs being created for such qualifications, if ever? The benefits are countless, no matter where you look.
BiS SiGMA Americas 2025 will feature a session on 9th April dedicated solely to the topic of Associations. What key points do you intend to highlight?
Our focus will be on three pillars: representation, regulation, and responsibility. Representation ensures that everyone involved, from small professionals to major players, has a voice in shaping the industry. Regulation provides the foundation for a stable and reliable market, protecting both players and operators. Responsibility involves promoting ethical practices, from advertising standards to combating illegal operations.
We also want to emphasise the importance of unity. When associations work together, as we did in the Nubank case, our collective voice becomes a powerful force for change.
Looking ahead, what are the main challenges and opportunities for Brazil’s iGaming market?
The biggest challenge is navigating the complexities of a newly regulated market. This includes ensuring compliance, combating illegal operators, and addressing public misconceptions. On the other hand, the opportunities are enormous. With a population of over 200 million, Brazil represents one of the largest potential markets for iGaming. A well-regulated industry will attract international investment, drive technological innovation, and position Brazil as a global leader in the sector.
We must ensure that the environment does not become so hostile that it drives away the foreign investors who have already entered our market or deters others from coming.
Finally, how can industry players support the efforts of associations like ABRAJOGO?
Engagement is key. We encourage operators, affiliates, and service providers to become members and actively participate in our initiatives. Whether through attending events like BiS SiGMA Americas, contributing to discussions, or adhering to best practices, every effort counts. Together, we can build a prosperous, responsible, and respected iGaming industry in Brazil.
Source: SiGMA.World
