ICE on the ground – insights from day one

Latam opportunities: ‘Operators will need more than one approach for markets like Brazil’

Entrants to newly regulated markets such as Brazil will have to adapt their offerings for different parts of the country, according to a panel speaking on opportunities in Latin America.

The panel, held at ICE London, discussed various Latin American markets that have either recently regulated various forms of gambling or are in the process of doing so, with a particular focus on Brazil.

Regulation of sports betting in the country was expected to complete last year, but outgoing President Jair Bolsonaro did not sign off on Law 13,756 by the time the deadline of 12 December was reached; the law was passed by the senate in 2018.

While the market is still not regulated, with the exception of a state lottery and horseracing, well-known brands including bet365, Betfair and Betsson already operate in the country.

When asked by EGR about the difficulties of moving into a new market where other operators would have previously operated in a grey market, Neil Montgomery, founder and managing partner of Brazilian law firm Montgomery & Associados, said: “It’s a matter of adapting and localising your content for the region. Each country is different and has its own specificities. Brazil is such a large country; each state and region is different, in terms of culture, tradition and even the sports played. Latin America is a very large market, with more than 650 million people and combined GDP of $5.5tn. The waters are sometimes treacherous, so you need the right people in each country.”

Josefina Frigoni, head of brand and content for operator BetWarrior, added: “It’s challenging, but part of the strategy should be to partner with a local operator or land-based casino, and that’s sometimes a requirement. It’s about understanding the different ways we work in different countries.”

Andre Gelfi, managing partner Brazil for Betsson Group, discussed the chances of the sports betting bill passing in future, commenting: “The delay was only for political reasons. There isn’t anything pushing it back, so it should be a matter of time. I can’t predict when, but that seems to be the situation.”

Gambling advertising: ‘Self-regulation alone won’t work’

Key European gambling figures have called on the industry to learn from previous mistakes, and that self-regulation alone won’t be effective.

One market in particular which was discussed at length was the Netherlands, where the regulated online gambling market has been operating since October 2021.

Plans for future regulation of gambling advertising in the country are in motion however, with Minister for Legal Protection Franc Weerwind proposing to ban untargeted gambling advertising this year, with further bans on sponsoring television programmes and events in 2024, as well as sports shirts and venues in 2025.

After EGR posed the question about the effectiveness of self-regulation and whether lessons can be learned from other markets in this regard, Peter-Paul de Goeij, managing director of the Netherlands Online Gambling Association, said: “We took a long time to regulate the market. It took us almost 10 years, but that gave us the opportunity to look at other markets and how they came up with solutions. We learned a lot from the UK. We looked at Denmark and Belgium. We have one of the strictest sets of gambling regulations in Europe, and I’m proud of it.”

Self-regulation in this area is something that has been seen in the UK, with measures such as a gambling advertising ban from five minutes before and five minutes after live sporting events taking place before the 9pm watershed, but further regulation is expected when the government completes its gambling review.

“Self-regulation in itself is never going to lead to a good result,” de Goeij added. “It is a layer on top of regulation, but it can be very effective if the regulations are clear, predictable and evidence-based. That’s when it can work.”

Elen Barber, chief marketing officer of operator Kindred Group, said: “If you look at Sweden, everyone went all-in and it was impossible to watch sports, because there was so much gambling advertising.

“When the Netherlands regulated, it was a much more modern approach. The negative effect of all betting advertising is much bigger than the positives that come from a moderate level of advertising, and you will potentially attract the same number of customers anyway. Operators that have been in other markets may realise it’s more important to self-regulate, because we’re then at least showing we tried to do it.”