Ivo Doroteia: “At the end of the day, it’s all about clarity”
The nascent Latin American market has a host of new jurisdictions opening their doors to igaming, but looking closely at how closely they will follow the lead of its European cousins and how pressure from international participants will impact local farming landscapes, Ivo Doroteia, CEO of SportingTech stressed that “At the end of the day, it’s all about clarity.”
He explains: “Being a supplier and being present everywhere, what we want is to know what is expected. Looking at Colombia it is clear to everyone what you are going to get from this market. ”
The second day of SBC Barcelona Summit, a panel titled ‘LatAm – to what extent will jurisdictions follow the Spanish model? “ – Sponsored by FBM digital systems – took an in-depth look at demographics, player habits and the games themselves in the latAm market to see what information can be used to build the future of slots.
Moderated by Samantha asensi, CEO of Twistycs, the panel, alongside Doroteia, was made up of Roberto Regianini, CEO of FBM digital systems, Alberto Alfieri, co-founder of Jada Gaming, Thomas carvalhaes, Regional Director, Brazil and Latin America at Hero game, and Alberto D’Angelo, CEO of La Tinka.
It was Alfieri which began by examining the still unregulated Brazilian market. Bringing a business perspective, he stressed, “There are so many things to consider here for this delay. Are we close? Well, we’re at least closer. We have about a year to see if the settlement in Brazil will see the light of day. “
Adding to that, Carvalhaes remarked: “To some extent it’s actually frustrating that we don’t yet see regulations in place in Brazil, provided it’s such a huge market – we know there are over 210 million people. . “
“There have been positive signs,” said Doroteia. “The government has been responsive, it has made some changes, so there are new people coming and new positive suggestions. They moved away from the old text model they had and pushed it towards GGR, which will create more appeal for any outgoing investor.
“So there are some good signs at the end of the day, it’s just a matter of clarifying the strategy to be followed.”
Looking at the Peruvian market, D’Angelo revealed that there are high expectations for the regulation, saying he is confident it “is on the right track”.
He added: “We have discussed with possible regulators of the market and its development in the industry and we believe that we will have good regulation and one that takes GGR into account.”
He went on to emphasize the balance between retail and online in the Peruvian market, explaining that within retail you generate jobs, rent out local properties and then have the social side. Meanwhile, mobile is a different experience, “so we are waiting for regulations that take into account the conversion in the retail and mobile environment.”
“We believe that regulation is on its way and we believe that it will take into account the positive elements in European markets and mature markets,” he concluded. “But the most important thing is not to duplicate things that have not worked well in developing markets, and also to consider a growing market like Peru.”
Pressed to know if he thought Peru was following European or Colombian jurisdiction, d’angelo revealed that it was more similar to the latter, while pointing out that Columbia “is 100% marketing online because with all the retail businesses you can only top up your wallet and play online – but I think you can do better than that “.
He continued, “You can issue a regulation that takes into consideration not only retail but also online, controlled money laundering and underage gambling. We think we are looking to Colombia and trying to replicate it. that worked really well.
“It’s a beautiful market, so we positively view the Colombian market as a way to regulate it. “
Ask by Alfieri about his specific Peruvian retail expectations – due to his thoughts on its importance throughout the South American region – d’angelo pointed out: “If you want to be one hundred percent sure that there will be no money laundering, it is very difficult to do, but regulations must identify the customers and the payment prices.
“But you have to take into account that in order to regulate and generate revenue, you have to start taking into account the dynamics of the market and the current operations that operators generate for the growth of the industry. You cannot kill the current operators.
Alfieri added: “I think we all agree here that the real operation of omnichannel regulation and management here is the key, and understanding the differences between the two main channels, but really and really identity verification is one of the major milestones online.
“We can also see it in Spain, where e-commerce has all the requirements and restrictions, unlike retail, and it’s a well established market in Europe.
Looking at the Colombian market, Carvalhaes remarked: “We know it’s not perfect, but at least from an operator’s point of view, it’s a regulation that you can look at and that makes sense – from a sports betting perspective and of the casino, it is simply clear.
“There is a lot of pressure and urgency for the Brazilian government at the moment.”
“I think the main risk we should avoid in Brazil – and this applies to other markets – is not to expect perfect regulation at the start,” Doroteia added.
“If I go to Germany I know what to bring, but copy and paste it might not be the right solution because it’s a different market at the end of the day, so let’s work with the locals and understand this market itself. “
He concluded: “The retail trade in Brazil has a completely different structure than anywhere else, it’s a completely different model, so on our side, what we have done is have developed it to adapt it. in the country. I think we should have a similar approach when it comes to the law itself. “
Regianini concluded: “We are already facing a big challenge in Europe, for example preparing products for Portugal is a nightmare but it is worth it because it is a good market. So, looking at the Brazilian regulated market in the future, it is certain that all the force will be put in place to have dedicated and personalized products.
“It will be a challenge, but it’s a good sign.
To watch this session on demand via SBC’s digital platform, visit digital.sbcevents.com for free registration.