Roundtable: Beyond Brazil with Seth Waterworth, Senior Account Manager
With Brazil being a key player in the Latin American iGaming sector and the name on every supplier’s lips for the past few years, attention is now on its regulatory framework and market dynamics. But how far might its influence extend? What can be learned from the newest LatAm market and applied elsewhere? iGaming Expert spoke to Push Gaming's Senior Account Manager, Seth Waterworth, as part of a roundtable of industry experts, to discover what the future holds for the region.
Brazil’s iGaming market finally launched in January 25 after much anticipation. What are the key positive elements of this regulatory framework, and how do they compare to existing models in more mature Latin American markets?
The primary benefit, like all regulated markets, is a clear and structured environment for operators and providers. From a provider's point of view, it has enabled access to Latin America’s largest economy with legal certainty on their content. It boosts credibility in the iGaming sector within Brazil and provides the Government with the opportunity to develop its economy further, ultimately benefiting individuals within the country. It has also helped promote iGaming in a much safer and responsible manner.
Regarding other existing regulatory models in Latin America. Brazil is more ambitious, trying to balance consumer protection along with rapid market growth as quickly and efficiently as possible. Colombia was the market leader in terms of market regulation, and there are similarities between these two, but it is leading the way in market-wide regulation.
With Brazil now open for business and thriving, what impact will this have on investment and operator activity in neighbouring Latin American countries? Will we see a domino effect, or will each market continue to evolve at its own pace?
There are already regulatory frameworks coming into fruition in neighbouring countries such as Peru and Chile. Brazil has most certainly accelerated this process, and I imagine more countries will follow in the coming years, sooner rather than later. Brazil’s regulation will encourage infrastructure investment, and this will most certainly spill into neighbouring countries through regional partnerships and tech outsourcing.
Some major operators are already entering these markets, and this will likely encourage other regions to move quickly to avoid missing out. Brand recognition will become a significant factor in these markets, and investment opportunities will drive regulatory changes.
Brazil's sheer size and economic influence make it a regional powerhouse. How can smaller Latin American markets leverage Brazil's regulatory success to develop their own frameworks and attract international iGaming operators?
Smaller LATAM markets should use Brazil as a working case study and see how it evolves and adapts over the next 12 to 24 months. By doing this, they can use these insights to build a sustainable, safe and beneficial iGaming ecosystem for their market. Utilising taxation, local presence requirements and eligibility criteria to benefit investment and safe gambling.
What are the biggest challenges and opportunities that Brazil's new regulatory landscape presents for iGaming operators, and how might these factors influence the strategies of companies looking to expand across the wider Latin American region?
The significant opportunity in the new market is to build brand loyalty and attract players. Providers can set the tone when it comes to user experience, and localised offerings will attract a following and establish trust. There is also the opportunity to form strong partnerships with local sports teams, media groups and influencers. This can then further develop as the economy continues to grow in the years to come. With high licensing fees and tax implications, it also imposes limitations on who may enter the market, allowing companies already active to grow more quickly.
With regulation being relatively new in Brazil, it is still evolving, and iGaming operators need to be constantly vigilant to stay compliant. There are also much tighter restrictions on advertising and marketing, specifying who, where, and when you can share your messaging. This is where partnerships with local companies play a significant role in amplifying a casino’s brand.
