GMB - What is your opinion on the current efforts in the Brazilian gaming sector?
Marcus Fortunato - The ban on casinos in the 1940s and bingo a few decades ago did little to change the country's gaming culture. Where there are consumers, there will be suppliers. The ban actually fueled illegality. With the recent approval and regulation of sports betting and online gaming, along with state and municipal lotteries, new legal markets are thriving. I see no reason why this growth won't continue.
How has PlayAGS positioned itself in the current market?
It's been a long journey. Our strategy was, first and foremost, to establish ourselves as a Brazilian company, with Brazilian talent, a deep knowledge of the country's culture and an understanding of the local market. We focused on forming strategic alliances and developing a product line specifically for Brazil. We never believed that standardized products from the US would be successful here.
We currently have strong partnerships, including AMZ Loterias, which holds two 20-year lottery concessions, and BETPR (Apostou), with whom we recently signed an agreement to supply our VLT - Instant Lottery products. In addition, our iGaming products have recently debuted on several platforms.
How do your American colleagues at PlayAGS see the Brazilian market?
The vision is clear, Brazil represents one of the biggest opportunities in the gaming industry. PlayAGS understands this, invests accordingly and has learned to be patient. Brazil is not for amateurs.
Our initial challenge was regulatory compliance. The transition from prohibition, coupled with taboos and misconceptions about gaming, created some obstacles. Fortunately, the government at the federal, state and municipal levels is cementing the future with clear standards and well-defined regulations. This generates confidence among international investors.
How do you see the VLT market in Brazil?
It is still in its early stages, and there are already some misconceptions. For Video Instant Lotteries (VLT) to be legal, they must be distributed by an authorized operator and sanctioned by a state or municipal lottery. Essentially, they are "digital scratch cards" with an engaging visual appeal, nothing more.
The partnership between Tictabs and PlayAGS allows us to offer a Brazilian VLT - Instant Lottery library with more than 100 games with GLI-14 certification and connected to a central server. We currently have more than 200 lottery terminals in operation, and our goal is to reach 1,000 by December 2025.
How is PlayAGS preparing for the future of the market?
Our efforts began six years ago. Today, we have a Brazilian team dedicated to game development, engineers engaged in future cabinets designed for the Brazilian market, which will be manufactured in Brazil, and a technical department trained together with the compliance department. We are more than ready.
How does PlayAGS see the competition?
The renaissance of gaming in Brazil is still in its early stages. Innovation and competence are already evident. A new generation of motivated young Brazilians is creating a market and, inevitably, new competition as the industry reopens. We humbly acknowledge that some Brazilian companies, such as Zitro and FBM, are ahead, and quite rightly so. However, we are not far behind.
This is a marathon, not a sprint. The finish line is not yet visible, but the roar of the crowd can already be heard. If the podium has only three places, we are confident that PlayAGS will be among the winners.
Source: Exclusive GMB
