SBC Leaders Issue 35

SECTION

RIO 2025

I S S U E

3 5

Beyond Brazil

The world’s largest regulated market

Betcris CEO celebrates 40 years in the game

Betsul, Estrelabet, NSX Group, Sportingbet, Stake and more on New Year launch and beyond

Out of Africa 888Africa CEO reveals strategy behind impressive growth curve

Welcome to Brazil

Superbet Brazil CEO Alex Fonseca is first on the pitch for the big kickoff 1

2025

RIO

FLORIDA

MALTA

TORONTO

LISBON

TBILISI

25–27 February 2025 Riocentro Rio de Janeiro

10–12 June 2025 InterContinental Malta

16–18 September 2025 Feira Internacional de Lisboa Lisbon

May 13–15, 2025 Broward County Convention Center Fort Lauderdale, Florida

June 17–19, 2025 Metro Toronto Convention Centre

15–16 October 2025 Sheraton Grand Tbilisi Metechi Palace Tbilisi

For more information please visit sbcevents.com or scan the QR code

EDITOR’S NOTE

Sunshine and rain Many of you will be reading this magazine at SBC Summit Rio just two months into the launch of the regulated market. With print schedules and shipping time and so on, we finished writing it just two weeks into the new year. Hats off to the SBC Noticias Brasil team for pulling together the immediate reaction of the market and focusing on getting down to the nub of the most important live issues. They will have developed during the past six weeks but we’re confident they’ll still be highly relevant. Relevant is one word, combustible might be a more appropriate one!

The overwhelming impression from those launching in the market is of a fragile peace. Everyone is celebrating and largely optimistic about the future but underneath the rhetoric lies concern about a market that is politically unstable and ripe for a tax bombshell or a regulatory restriction at any moment.

Brazil is no different from any other regulated market in that respect. However, it is larger than any other regulated market.

And that, of course, is what gives people hope that there will be something for everyone well into the future.

While I was back in the UK, it sometimes felt like I was ensconced in Rio (weather aside) as Brazil dominated my working life as it will have done for many of you. However, the rest of the world continues to turn and SBC would not be SBC if it did not cover the stories and people who matter elsewhere.

For example, it was an absolute pleasure to catch up with 888Africa’s Christopher Coyne to talk about some different Portuguese-speaking markets – Mozambique and Angola – as well as its other five African countries of operation.

The beauty of the iGaming industry is that there are always pioneers like Coyne ploughing new furrows. SBC Leaders will continue to celebrate their stories no matter where they are.

Whether you are reading this in Rio, London, Athens, Valletta, Tirana or Maputo, I hope you enjoy a little reflected sunshine from this issue.

Steve Hoare, Editor, SBC Leaders

The SBC Leaders Magazine is brought to you by SBC - Sports Betting Community: Editorial Team: Andrew McCarron, Craig Davies, Ted Menmuir, Joe Streeter, Chris Murphy, Conor Porter, Charlie Horner, Jessie Sale, Fernando Noodt Molins, Callum Williams, Viktor Kayed, Martyn Elliott, Lucia Gando, Jessica Welman, Ted Orme-Claye, Danny Lee, Steve Hoare, Justin Byers, Kieran O’Connor, Christian Lee, Tom Nightingale, Elisa Marcante, Isadora Marcante Sales Team: John Cook, Rasmus Sojmark, Alyona Gromova, Conall McCabe, Jan Kowalczyk, Richard Deacon, Bob McFarland, Craig Brown, Juan Ospina, Ed Young Creative Lead | Design and Layout: Jessica Camilleri

3

SBC LEADERS ISSUE 35

08 Superbet

24 Kaizen

6 People Stake’s Thomas Carvalhaes reflects on a life in and outside gambling; plus leaders on the move

8 Spotlight: Superbet Brazil CEO Alex Fonseca celebrates being the first licensed operator in his homeland

48 Betcris

12

The Hot Topic: Welcome to Brazil!

First impressions on the blood, sweat and tears needed to get underway in the world’s largest regulated market

24 Interview: Kaizen Gaming

Stella Voulgaraki on how to build a powerhouse

© 2024 Sports Betting Community Limited. All rights reserved.

All content in this publication, including articles, photographs, and other materials, is protected by copyright under the Copyright, Designs and Patents Act 1988. The copyright in all materials in this publication is owned by Sports Betting Community Limited or its licensors. You may not reproduce, distribute, or otherwise use any of the content without the express written permission of Sports Betting Community Limited (SBC), except as permitted by law. For permissions or licensing inquiries, please contact sales@sbcgaming.com.

The views in the publication are not necessarily the views of SBC or those of the advertisers. Although every effort has been made to ensure the accuracy of the information contained in this publication, SBC cannot be held responsible for any errors it may contain. In no event shall SBC be liable for any direct, indirect, incidental, special, consequential, or exemplary damages, including but not limited to, damages for loss of profits, goodwill, use, data, or other intangible losses (even if we have been advised of the possibility of such damages), resulting from the use or the inability to use the material contained in this publication.

Produced and published by Sports Betting Community Limited REGISTERED ADDRESS: SBC, Riverbank House, 1 Putney Bridge Approach, London, SW6 3JD TEL: +44 (0) 203 983 7050 | EMAIL: sales@sbcgaming.com | WEB: www.sbcgaming.com & www.sbcleaders.com

4

Contents 82 Comment:

Ras Sojmark The final word

CASINO

31

Column: The argument for advertising responsibly Fernando Noodt on the ad ban plague coming to Latam

32

Interview: Greentube CFO Michael Bauer Finance chief says the Brazilian casino market is immature but full of promise

36 Feature: Crash

games crazy in Latam

Spribe CEO and others assess the future of crash games in South America

SPORTS BETTING

41 Column: Media

brands targeting Brazil

Ricardo Assis on mediabetting convergence plays

42 Interview: 888Africa

CEO Christopher Coyne

52 Thought

PAYMENTS

leadership: Nicolas Campano of Soft2Bet

77 Column:

Latam Sales Director looks to gamification as traditional loyalty schemes fade

Ted Orme-Claye on payments landscape in Brazil

PLAYER PROTECTION

57

Column: Evolution case highlights new front Steve Hoare wonders whether the Gambling Commission has started something special

58

Feature: The evolution of RG in Brazil Stakeholders look at a good start and ponder what’s next

MARKETING

78 Feature:

The PIX dilemma

One dominant payment m ethod is a blessing and a curse

Nico Jansen SBC Leaders would like to pay a small tribute to Bet IT Best CEO Nico Jansen, who died at a tragically young age in January. Nico has been a close friend of SBC for a number of years and was a true champion of the industry. He will be dearly missed by everyone who knew him. He featured in the last issue of SBC Leaders, which went to print before he died but was published afterwards. Please accept our heartfelt apologies if this caused any dismay or offence. On behalf of all at SBC, we would like to send our very best wishes to Nico’s former colleagues, friends and, most of all, his family.

65

Column: Affiliates in Brazil Charlie Horner on first mover advantage and localisation

66 Feature:

Sponsorship of women’s sports

African challenger on Lu sophone markets beyond Brazil

Get it now while it’s cheap, because it won’t be for long

48 Interview:

Feature: SBC Americas show preview

Latam veteran celebrates 40 years of Betcris

All you need to know about SBC’s all-new Americas extravaganza

Betcris CEO JD Duarte

A real difference

70

5

66 Women’s Sports

PEOPLE

SBC LEADERS ISSUE 35

My Life IN Gambling Stake’s Brazil Country Manager THOMAS CARVALHAES reveals the more printable war stories from a life well-lived in the Latin American iGaming industry

Dancing samba at LeoVegas On my first day, still jetlagged, I found myself in a meeting with the company’s Heads, Country Managers, and Founder. I prepared a presentation on Brazil and emerging markets, but the directors had a different idea—they asked me to dance samba since I’m Brazilian. So, to the sound of ‘Samba,’ ‘Ronaldinho,’ and playful imitations of carnival music, I had no choice but to samba for everyone to see. I am a musician, but I don’t know how to dance.

Meeting my Mexican father at BetMotion Travelling across 25 countries to attend global conferences and meetings, I made strong friendships in the industry - even with competitors!

My biggest friends work in competitor brands. In 2018, when I went to Mexico to launch Betmotion’s operation in the country, I worked closely with Hugo Baungartner, who also lived in Mexico at the time. We shared an office at Insurgentes Avenue, and he educated me on Mexican culture, food (hello, spices!), and perspective. He was my Mexican father, let’s say. I learned everything I needed to know about the country with Hugo.

Nescau shots in Mexico As an iGaming Consultant, I had a work trip to Mexico (once again!). I was near the city of Polanco, walking around, and passed a restaurant in the El Ángel de la Independencia monument.

The waiter was in front of the establishment, inviting people to enter: “Brazilian, Brazilian. Have you ever drunk Nescau?”, he asked me. I said I hadn’t, because I never heard of it before. [Ed: it’s a chocolate powder drink made by Nestlé.]

He made me enter the restaurant and started serving several Nescau shots. I didn’t know how to drink it. People at a table next to me saw how excited I was taking the shots, so they started buying more for me. Eventually, I learned that the right way of drinking Nescau is by tasting it and not taking shots. It was, indeed, the worst drinking experience of my life: it wasn’t only Nescau, but alcohol, which I don’t really like. I found that out when I left the restaurant… at 3 am… and ended up in a nightclub - a story I cannot tell you.

GR8 Tech 2023 - 2024 Senior Business Development Manager Hero Gaming 2020 - 2023 Regional Director, Latin America LeoVegas Group 2019 - 2020 Country Manager, Brazil BetMotion 2018 - 2019 General Manager, Mexico Self-employed 2017 - 2018 iGaming Consultant DigiOutsource (part of Betway) 2011 - 2018 Various

6

CV - THOMAS CARVALHAES

Stake 2024 - present Country Manager, Brazil

PEOPLE

Leaders making moves Former Playtech SVP Gil Soffer has been promoted from SVP of Digitain Group’s Galaxys subsidiary to Chief Commercial Officer of Digitain.

Meanwhile, Edmond Ghulyan has been named CEO of its Relum casino engine solution and deputy CEO Martin Martirosyan has been handed the additional role of leading the group’s live casino division, Imagine Live.

Evolution CFO Jacob Kaplan has stepped down as CFO and will be replaced by Joakim Andersson, who held CFO roles at listed companies such as Kinnevik and Cint Group.

My Life OUTSIDE Gambling

Intralot has appointed Chief Commercial Officer Richard Bateson as CEO of its US subsidiary Intralot Inc.

LIFE AFTER THE LOSS OF MY FATHER I worked for more than 10 years as a full-time volunteer in South Africa. This type of commitment changes us, and it changed me. It makes us better people and less vulnerable to fear and stressful situations. Recently, I lost my father.

It changed the meaning of some things in my life – with the great help of therapy and family and friends. The support I got from the industry right after I lost my father was beyond amazing. He passed away a week before the SBC Summit Latinoamérica in October 2024, where I had to go to be a speaker. Getting there, at the Seminole Hard Rock Hotel & Casino, I received so many kind words and warm hugs from colleagues and friends that only made me realise how many good friends I made throughout the years working in this industry. It is not all about money, Brazilian market regulation or work, it is a true friendship and a genuine interest in each other’s lives.

WHEN MUSIC MEETS… ME Only some people know this: I am a professional musician and a percussionist. For many years, I studied rhythm instruments, percussion, drums, jazz, African jazz, and Latin music. I’m a terrible dancer, but I can play or learn any percussion instrument. Apart from that, I like playing offline FIFA and exercising to keep my beer belly checked.

7

Fortuna Entertainment Group has appointed Chief Financial and Operations Officer Dieter John as its new CEO to replace the outgoing Victor Corcoran.

Galaxy Entertainment Group announced Francis Lui Yiu Tung as successor to his late father as chairman of the board.

Awager and Rush Street Interactive have both made Golden Nugget Online Gaming founder Thomas Winter a non-executive director.

Delaware North has appointed former Prime Sports CEO Lee Terfloth as Chief Interactive Gaming Officer.

Revolver Gaming has appointed former Relax Gaming CEO Simon Hammon to its advisory board.

Former Penn Entertainment SVP Patrick Jay has joined Evoke as Director of Football and Sport.

SPOTLIGHT

SBC LEADERS ISSUE 35

UNDER STARTER’S ORDERS 8

SPOTLIGHT

Superbet was the first operator to win a Brazilian licence. At the beginning of a new era, Superbet Brazil CEO ALEX FONSECA reveals his strategy for the launch of regulated gambling Words by RICARDO ASSIS

A

the unregulated market. So, essentially, they choose between dealing with legal or illegal gambling. Non-gambling is not an option. Betting has existed in Brazil for some years — decades, I would say — always in an unregulated form. This step taken by the Brazilian government was very important because it brings the legal and tax security that we operators need, as well as safety for the player and even for the government, which now knows who its operators are and has effective ways to punish, oversee, and audit,” adds the Superbet CEO.

fter a long six-year wait, the day has finally arrived. The wait for operators, affiliates and providers is over, and the day has dawned for everyone. The anticipated Law No. 14,790/2023 has come into effect, establishing protections for all participants in Brazil’s sports betting ecosystem.

The country has experienced turbulent moments, with discussions that were more political than technical, but it managed to navigate this tortuous sea and is now beginning to reap the rewards of this moment of calm. And, as in every country where gambling has been regulated, the biggest rewards are likely to be won by those who arrive first.

WHAT’S THE COMPETITION? With a reduction in the number of players in the market, it is expected that some companies will dominate and increase their revenue, right? Not for Fonseca: “I don’t believe that because we currently have over 200 applicants for licences, and these 200 applicants can have up to 600 brands, considering that each applicant is entitled to register three brands. From what we’ve seen, all the major names will apply for an operating licence in Brazil, and those who will leave the market are smaller websites.”

Superbet, led by country CEO Alex Fonseca, is a pioneer in Brazil’s regulated market. The second company to apply for a licence in the Sistema de Gestão de Apostas (SIGAP), Superbet was the first to pay the concession fee and the first platform to receive certification from the Secretaria de Prêmios e Apostas do Ministério da Fazenda (SPA/MF).

“We are very proud. We wanted to make this licensing fee payment as quickly as possible to show our support for regulation.

I personally — and Superbet as well, of course — understand that the best way to control the effects of our activity on society is through regulation,” says Fonseca.

The Superbet CEO, however, points to the benefit that blocking irregular sites can bring to serious operators in the country.

“The major gain is removing what we call the 777 sites, which are platforms that operate in an irresponsible manner and are not as committed to customers.”

“Governments generally have two options.

They can deal with the regulated market or

9

SPOTLIGHT

SBC LEADERS ISSUE 35

and backed by a legitimate company that can be held accountable in court.”

“I don’t believe revenue will increase solely because of regulation,” he continues. “Maybe it will grow for some operators who start doing better work, with larger investments, which will naturally lead them to gain a bigger market share. With greater security for the capital invested in Brazil, operators will invest more and grow their brands.”

He also cites the government’s concern for players’ health, with Responsible Gaming policies established in SPA Ordinance No. 1231/2024. “Phone support and mandatory problem gambling prevention programs are some of the great benefits for the market.”

Blocking illegal websites, however, has been a challenge for Brazil’s Federal Government. At the end of 2024, Carlos Baigorri, president of the National Telecommunications Agency (ANATEL), spoke about the technical difficulty of carrying out this task, saying that it felt like “mopping the floor with the tap running”. Fonseca believes this will be Brazil’s main challenge in 2025.

For Fonseca, regulation is a double-edged sword, bringing benefits to both bettors and operators.

“The main benefit for us is undoubtedly legal and tax security. In June or July, there were court rulings that led to sites being taken down, initially only in Rio de Janeiro, but this eventually had nationwide effects in some cases. For operators, this is very challenging because investments in this market are huge.

For example, we make significant investments, like sponsoring Fluminense here in Rio de Janeiro, and then having a site shut down in the state due to a court order — which, of course, we respect — makes it very difficult to build trust for further investments.”

“This market is one that, if you don’t have a very efficient way to stop illegal operators and quickly enforce the punishments provided by law, you won’t be able to manage it. Today, an illegal operator sets up a website, and when the government takes it down, they launch another one the next day. Then it takes another two or three months due to the legal process to get a court order to take down the new website.”

Regulation has come into effect, but some aspects of the law are still being analysed by legislators and could soon change. One of these is the potential prohibition of betting advertisements. Fonseca views the concern as fair but warns that, in his opinion, such a ban would only harm clubs and sports as a whole.

And what are the possible ways to combat this? For the Superbet CEO, it involves creating mechanisms that give ANATEL greater autonomy.

According to Fonseca, this process can then be carried out more quickly and effectively.

CREATING CERTAINTY

He also says that such a prohibition would remove one of the main attractions of the regulated market: brand exposure.

While speaking to SBC Leaders, Fonseca details some of the points he considers extremely positive about regulation. From his point of view, the new regulated market brings visibility to the entity behind each brand: “Players have the assurance that the product they are using is certified, audited by the Brazilian government,

“One of the main benefits of regulation is that I can showcase my brand. Illegal operators cannot expose theirs, which makes it much harder for them to acquire new customers.”

FROM THE BALKANS TO BRAZIL

And what led to the decision to focus on Brazil as the first country outside Europe?

For the CEO of Superbet, it was a natural choice given the current moment in the country: “Brazil is undoubtedly the thirdlargest market in the world today. In some aspects, it’s even the second, and the imminent regulation of this market obviously makes it extremely attractive for any company. We can see a large number of betting operators entering the Brazilian market or exploring the possibility of entering soon.”

Superbet was founded in 2008, when it launched its operations with a string of retail bookmakers across Romania. In a short time, the company became the absolute leader in sports betting in the country.

“With the advent of the internet, it transitioned to the online market in 2018 and, since then, has expanded across the Balkans, with Brazil being the first market outside Europe that Superbet is directly targeting,” says Fonseca.

10

SPOTLIGHT

“

Today, an illegal operator sets up a website, and when the government takes it down, they launch another one the next day

“I have no doubt this brings many benefits, as it allows you to communicate with that user base in a much more intimate way because we share the same passion.

Superbet also supports Fluminense, América-RJ, and São Paulo.”

“When the government imposes on me the same restrictions as illegal operators — meaning no one can advertise — it will hurt me, hurt the sport, hurt the media outlets where we advertise, and benefit the illegal market. Everything the government does to harm the industry benefits the illegal industry,” Fonseca warns.

The company’s CEO also emphasises plans to expand sponsorship investments and noted that Superbet is active in other segments beyond football. “We focus on three pillars: sports, entertainment, and culture.

These are three areas we prioritise and invest heavily in. In 2024, we had the opportunity to sponsor Lollapalooza and Rock in Rio, and in 2025, we will be at The Town.”

FOOTBALL FOCUS It would be impossible to talk about sports betting in Brazil without mentioning football, right? Superbet, which entered the country at the beginning of 2024, launched into the market with an aggressive strategy. The operator, in its early days, already featured on the jerseys of São Paulo and Fluminense.

Finally, Fonseca concludes by noting that Superbet is actively pursuing new partnerships but leaves a little mystery in the air: “In football, there’s still a lot to be announced throughout 2025. I can’t give spoilers, but in the coming weeks, we’ll be making announcements about partnerships that have already been secured.”

“I believe the association with major clubs brings a very strong brand presence among fans, those who follow the club, and also conveys a lot of trust to the company.

We often say that football in Brazil is a religion, and that’s why clubs inspire great confidence in players.”

11

THE HOT TOPIC

SBC LEADERS ISSUE 35

WELCOME TO THE WORLD’S LARGEST REGULATED MARKET Words by RICARDO ASSIS, STEVE HOARE, ELISA MARCANTE, ISADORA MARCANTE AND ANA MARIA MENEZES

12

THE HOT TOPIC

The launch of the regulated sports betting and iGaming market in Brazil is the biggest event to hit the industry since the fall of PASPA in the US. On the following pages, the SBC Notícias Brasil team presents the biggest stories shaping the market and the immediate reaction of stakeholders just two weeks into the new regime

O

Until 2022, Brazil was one of the few countries which held its presidential inauguration ceremony on January 1st. As a result, almost nobody of importance turned up. Finally though, the government has cottoned on and from 2027 onwards, it will be held on the 5th. If the presidential inauguration can be moved, you might have thought the gambling regulator could have delayed its launch until everyone had shrugged off their hangovers.

n the opening day of Brazil’s regulated market, 66 operators launched 137 brands. Of those 66 operators, 52 kicked off proceedings with a temporary licence. It is indicative of a market that is very much a work in progress. However, it’s a market that Vixio estimates could be worth $2.9bn in GGR this year and could rise to $6.8bn by 2028.

“In just a few weeks since going live, Brazil has demonstrated extraordinary growth, with transaction volumes and user adoption rates exceeding the combined totals of the largest and mature iGaming and sports betting markets in the United States,” says Mike Willemse of geolocation supplier GeoComply.

On the following pages you will hear from the leaders of some of the nation’s preeminent betting brands. While they remain overwhelmingly positive about regulation and optimistic about the new regime, there is an undercurrent of concern that sneaks through the on the record positivity. Off the record, there are considerably more grumblings about how the launch was handled, concerns about the black market flourishing due to increased security measures for licensed sites, and worries about the instability of the legal and political situation.

Indeed, sources suggest the volume of bets at launch was more than the combined total placed in New York, New Jersey and Michigan over the same period. However, the decision to launch on January 1st made for a stressful Christmas period and there would have been few celebrations held on New Year’s Eve.

You can read more about the threat of new taxes on page 18, the continuing brawl between the Rio lottery and federal government on page 20, and the long, slow march towards regulation of land-based casinos on page 22.

But for now, let’s hear from some happy operators, who are cautiously celebrating the launch of the world’s largest regulated market. This is Brazil warts and all!

One source, who wished to remain anonymous, commented: “The launch went OK but any migration is fraught with difficulties – particularly in a new marketplace and particularly on January 1st. Which idiot thought that January 1st was a good day to launch?

Even the regulator’s own team is going to be on leave.”

13

THE HOT TOPIC

SBC LEADERS ISSUE 35

ALEX FONSECA, SUPERBET BRAZIL, CEO “Our first impression of the regulated market is, without a doubt, that we are facing new challenges. Today, we have a more complex acquisition funnel, requiring users to validate some documents and undergo facial recognition. We know that some operators in the market are struggling with these new processes, mainly due to choosing partners with little knowledge of Brazil. Superbet has been able to recover much of the volume we had before regulation, and we certainly hope this volume will increase with reduced competition. We also extend our best wishes for the government to succeed in restricting the unregulated market.”

FELLIPE FRAGA, ESTRELABET CHIEF BUSINESS OFFICER AND INSTITUTIONAL RELATIONS “The beginning of the regulation of the betting market in Brazil marks a new era of transparency, professionalism, and security for the sector. At EstrelaBet, we have been working intensively since the publication of the regulation to meet all the established requirements. The payment of the R$30m concession fee, international certification, and the implementation of robust operational workflows are the results of our team’s consistent efforts and constructive dialogue with the government. We understand that challenges will arise throughout this process, but we are committed to contributing to the development of a new and regulated market in Brazil, which is just beginning to take shape. As a Brazilian company, we understand the country’s challenges and believe that technology plays a key role in offering an innovative, secure and socially responsible gaming experience. We will continue investing in strategic partnerships, such as our pioneering collaboration with FUMEC University, to ensure that gaming remains a healthy, balanced and user-centered activity.”

14

THE HOT TOPIC

FERNANDO GARITA, BETSUL, CEO expect to return to normal soon, with the market continuing to evolve. I believe that marketing will be key in attracting the “nomadic” players — those who were with other betting houses and are now looking for new platforms to register with.

“The beginning of the year has been a bit different in Brazil due to the introduction of regulation. There’s been a lot of anticipation and hard work for both operators and suppliers. Slowly, things are returning to normal. The registration process has required us to engage more closely with our clients, but it’s starting to stabilize. On the other hand, the amount of available content is also gradually adjusting, as it involves many different parties: operators, game suppliers, aggregators, and so on.

“We are fully focused on growth and capitalising on the market potential, which will gradually consolidate into a smaller number of operators. This would allow us to attract more customers per betting house, as long as proper oversight is maintained.

Otherwise, regulated operators could find themselves at a disadvantage compared to non-regulated ones.

“I believe there have been several challenges, but adjustments are being made to ensure everything functions smoothly. One major challenge has been the technological aspect.

New elements are now in play, such as facial recognition. Although some Brazilians are already familiar with this technology, it remains new to many. As with anything new, there will be a process of adaptation. Another challenge has been communication. At this moment, companies are focused on guiding customers through communication channels, social media and influencers, to ensure they know how to navigate the changes and access services in the usual way.

Another factor is the timing of the change.

It occurred during the holiday season, when people are typically disconnected and, when they returned, they encountered these changes. But again, this is all part of an adaptation process, and a strong focus on communication with customers is crucial.

“Regardless, our growth strategy revolves around increased brand visibility, more sports content, expanded gaming offerings, dedicated customer service, and some innovations in our acquisition channels.

Our focus will always be on growth and maintaining competitiveness. Betsul has a strong Brazilian identity and a deep understanding of each region in the country.”

“When looking at KPIs, it’s useful to consider the market as a whole. Many companies started their operations in the first days with only around 30%, 40%, or, in the best cases, 50% of the expected volume. But this was anticipated, and most of us were prepared for this. We

15

THE HOT TOPIC

SBC LEADERS ISSUE 35

JOÃO STUDART, NSX GROUP, CEO “The regulation of the betting sector is a historic milestone for Brazil, consolidating an ethical, safe and transparent environment for operators and users. From the beginning, NSX Group viewed regulation as an opportunity to strengthen the industry by adopting the best international practices. We take pride in being pioneers in adapting to the new rules, implementing solid responsible gaming policies, robust compliance tools and securing our definitive license. The new legislation provides greater consumer protection and establishes a more reliable market. We are ready to lead this new scenario with an innovative, secure ecosystem focused on offering a responsible and high-quality experience to Brazilian bettors. Our commitment is to continue promoting responsible entertainment and help position Brazil as a global benchmark in the sector.”

ANTÔNIO FORJAZ, SPORTINGBET (ENTAIN), COUNTRY MANAGER “The regulated market opened on January 1st, and, at this initial stage, it is natural for participants to be adapting to the new regulatory conditions and requirements. We remain excited to be part of this market and want to contribute to a regulation that protects consumers and helps everyone have fun in a healthy way.”

16

THE HOT TOPIC

THOMAS CARVALHAES, STAKE BRAZIL, COUNTRY MANAGER “Stake Brasil is extremely optimistic about the start of the regulated market in Brazil. The launch on January 1st went as planned, and the results have already exceeded expectations.

Our commitment is to continue working alongside the regulator, meeting the demands of the regulated market and fully complying with the guidelines established by law, striving for a fairer and more compliant market.”

RAFAEL MARCHETTI MARCONDES, REI DO PITACO, CHIEF LEGAL OFFICER “The regulated betting market in Brazil began recently, but its early days already reveal a promising scenario, with signs of growth and rapid adaptation by both operators and players. Although initial data remains preliminary due to the short period of operation, the outlook is highly positive.

Clear regulations and established guidelines suggest that the sector is on a path toward healthy and sustainable development.

This beginning presents an opportunity to consolidate a more structured market where both operators and players can benefit from a safe and transparent environment. With well-defined rules, operators know exactly what can and cannot be done, fostering good practices and greater trust. For players, this means increased protection, as they are assured of participating in a regulated and reliable market. Over time, we hope these foundations will enable consistent expansion and a progressively stronger industry.”

17

THE HOT TOPIC

SBC LEADERS ISSUE 35

GOVERNMENT THREATENS RETROACTIVE TAX ON PREREGULATION OPERATIONS Words by RICARDO ASSIS

J

Filipe Rodrigues, lawyer and CEO of Jogo Positivo explains: “The joint ordinance does not clarify whether the tax obligations related to the period prior to authorisation are primary or ancillary.

oint Ordinance RFB/SPA/MF No. 3/2025, jointly issued by the Secretariat for Prizes and Betting of the Ministry of Finance (SPA/MF) and the Federal Revenue Service, establishes the creation of the Interdepartmental Working Group (GTI), named GTI-Bets. Its purpose is to monitor the behaviour of the online gaming and sports betting sector concerning fiscal compliance and the maintenance of the requirements for authoriation of licensed entities.

“I believe there is no retroactive primary tax obligation. Such a measure would constitute an abuse of state power. The principle of tax legality sets a limit on the State’s taxing authority, ensuring that taxes can only be levied when explicitly provided for by law. This means no tax can be demanded without a clear legal basis. Moreover, the law establishing a tax must be clear and precise to ensure legal certainty and predictability of tax obligations.”

The GTI also aims to support the identification of potential illegal operations by companies not authorised to operate in Brazil, which may be involved in money laundering and other crimes.

“In essence, the principle of tax legality seeks to ensure fiscal justice and protect the fundamental rights of taxpayers while enabling the State to collect the resources needed to fulfill its functions and responsibilities. Thus, any retroactive tax collection before the authorization period would be arbitrary and illegal. Private entities cannot be penalised for the State’s omission over the past six years,” concludes Rodrigues.

The most contentious issue, however, is found in item II of Article 1. It states that one of the GTI’s responsibilities is to “support a compliance program proposal for the regularisation of tax obligations related to the period preceding authorisation for the authorised entities.”

18

THE HOT TOPIC

The case dealt with the Social Contribution on Net Income (CSLL), where the court ruled that tax collection should retroactively apply back to 2007, when the Court deemed the tax constitutional. Taxpayers sought to limit the decision’s effects to avoid retroactive application, but this was denied, breaking the finality of judgments.

Andréa Ueda, associate lawyer at AMIG (the Association of Women in the Gaming Industry), says the intention of the law seems to be to figure out whether taxes should have been collected from operators in the period before they were awarded licences at the end of 2024.

“I cannot say that this intention (to study the past, map fiscal compliance, and present a textual proposal) is surprising,” says Ueda, “at least for operators who participated in discussions with members of the Ministry of Finance as early as 2023.”

“In this case, the situation differs. There was no taxable event for online betting activities.

Between 2018 and 2023, there was no clarity about the tax liabilities operators would face.

Any other interpretation, in my view, would be unconstitutional, violating the principle of tax legality enshrined in Article 150, I of the Constitution. Any contrary interpretation would lead to fiscal surprises and systemic risks,” Rodrigues concludes.

“Before the Secretariat for Prizes and Betting even existed, this issue had been raised in inperson meetings with association members.

Moreover, it had already been the subject of discussions among politicians, both during the 2023 parliamentary inquiry commission and in debates leading to the approval of Law No. 14,790/2023.”

Ueda adds: “Discussions suggest that this ordinance provision will likely focus on bettors’ pockets, seeking to tax their income from betting winnings at platforms operating in or for Brazil before licenses were issued.”

“But moving from these regulatory and fiscal intentions (which are not, per se, improper) to declaring retroactive tax collection feasible opens a significant gap,” he says. “This raises concerns about Constitutional and Tax Law principles, which must be thoroughly studied in conjunction with past facts and activities.

As any law student knows, issues such as statutes of limitations, the legal existence of a tax base at the time, and active and passive legitimacy will undoubtedly be central topics for the GTI.” Rodrigues claims the new policy could be at odds with a Supreme Court decision from last year. That ruling upheld retroactive tax collection but exempted companies involved from fines.

“The topic is highly controversial, considering the decision in April of last year,” says Rodrigues.

Filipe Rodrigues, Jogo Bonito

19

THE HOT TOPIC

Words by ISADORA MARCANTE

W

hen President Michel Temer signed Law No. 13,756 in late 2018, legalising fixed-odds sports betting in Brazil, he could not have anticipated the developments that would unfold six years later.

The situation began to shift dramatically following the Supreme Federal Court’s (STF) unanimous 2020 ruling that dismantled the federal monopoly over lottery operations.

President Luiz Inácio Lula da Silva muddied the waters further with the July 2023 decision to regulate sports betting. What had been a quiet, underlying disagreement between federal and state authorities erupted into full-scale conflict.

The 2018 law established fixed-odds sports betting as a lottery modality. Then, in 2023, it was modified to state “all concessions, permissions, authorisations, or direct explorations promoted by the States and the Federal District, initiated before the publication of Provisional Measure No. 1.182 on July 24, 2023, are preserved and confirmed in their original terms.”

Hazenclever Lopes, Cançado

SBC LEADERS ISSUE 35

SUPREME COURT POISED TO DECIDE ON RIO DISPUTE WITH GOVERNMENT

It continues: “This applies to those where the first public notice or call for bids was published before the publication of the aforementioned Provisional Measure, regardless of when the actual concession, permission, or authorisation was finalised, safeguarding acquired rights and legally perfected acts.”

20

THE HOT TOPIC

Sports lawyer Filipe Rodrigues says: “The main argument is that by allowing nationwide operations, LOTERJ would be infringing on the Union’s authority to regulate and oversee lottery services at the national level.”

The Lottery of the State of Rio de Janeiro (LOTERJ) issues licences that allow 25 operators to act legally across Brazil. It fits the criteria set out in the law and should be able to carry on as before. So why the Supreme Court battle?

Supreme Court Justice André Mendonça granted a preliminary injunction, suspending the amendments to the notice and reinstating geolocation mechanisms. This ruling prevents licensed companies from operating outside Rio de Janeiro.

LOTERJ President Hazenclever Lopes Cançado tells SBC Leaders: “LOTERJ is fully compliant with the guidelines set forth by the Supreme Federal Court’s 2020 ruling. Our licensing notice for operators was issued in 2023, following the law in effect at the time — Law 13.756/2018 — and aligned with the constitutional interpretation provided by the Supreme Court.”

The minister ordered the state government and LOTERJ to comply within five days.

LOTERJ appealed the decision, but on January 6, the appeal was rejected. The following day, the lottery filed another appeal, and there are four potential outcomes, as outlined by Rodrigues.

He also emphasises that state lotteries have the autonomy to regulate and operate games within their territories. “The issue of players from other states accessing LOTERJ-licensed websites is a matter of internet accessibility, which is inherently non-territorial. The internet is a national and global medium, and LOTERJ cannot restrict access from users outside Rio de Janeiro, as doing so would violate constitutional principles of economic freedom and market access.”

The first scenario would involve the Supreme Court maintaining the original decision, rejecting the appeal and forcing LOTERJlicensed operators to use geolocation technology to keep operations in-state.

The second scenario would involve the Supreme Court partially accepting the appeal, clarifying or adjusting specific aspects of the previous decision without altering the final result. This would provide clarity on when the legal norms began to take effect and revise any unclear or overlooked provisions, but would not reverse the licences’ suspension.

The conflict between LOTERJ and the federal government, represented by the Attorney General’s Office (AGU), has intensified, with the AGU forcing Anatel to repeatedly block and unblock websites licensed by LOTERJ. “The Federal Court of the 1st Region and the Federal District Judicial Section reinforced in their recent decisions [in late 2024] that LOTERJ is operating within the bounds of the law, protecting both its actions and those of the licensed operators. These rulings make it clear that Law 14.790/2023, published later, cannot retroactively invalidate acts performed under the previous legal framework,” confirms Lopes Cançado.

The third possibility is the Supreme Court reversing its opinion and concluding that the amendments to the notice did not violate the applicable laws at the time of their publication. This would allow LOTERJlicensed operations to continue.

However, at the beginning of this year, actions initiated by the AGU against LOTERJ, as anticipated, reached the Supreme Court.

It will now decide whether to uphold the 2020 decision or change the stance it took five years ago.

The fourth and final scenario would involve the suspension of the earlier decision. If the suspensive effect is granted, the decision would be rendered moot until the Supreme Court’s final judgment on the case, allowing LOTERJ to continue operating under the amended notice until a definitive ruling is made.

The AGU has sought an immediate injunction to stop LOTERJ-licensed operators operating outside the state of Rio de Janeiro.

The decision is due mid-February. Until then, 25 LOTERJ-licensed operators wait with bated breath.

21

THE HOT TOPIC

SBC LEADERS ISSUE 35

CULTURE SHIFT OR CULTURAL RESISTANCE ?

Words by ANA MARIA MENEZES & ELISA MARCANTE

B

razil is one of the few countries in the world that legalised digital gambling before physical casinos, prompting some to argue that Brazilians’ love for an online lifestyle is the reason. However, the story may run deeper than that.

Why would physical casinos be prohibited in a country with such a long-standing history of gambling, criminalised in 1946 on moral grounds? An even more pressing question is: what has changed so that, 69 years later, physical casinos, bingo, and the Jogo do Bicho are once again viewed with acceptance, if they are at all?

BACK TO THE FUTURE Brazil’s history with gambling has been marked by significant highs and lows. The period from the 1930s to 1945 was known as the Golden Era for Brazilian casinos, with more than 70 establishments flourishing. This era was defined by glamour, cultural exchange, and entertainment-driven investment.

However, in 1946, the landscape changed dramatically with the issuance of DecreeLaw No. 9,215/1946, which prohibited casino operations. President Eurico Gaspar Dutra justified the ban by citing the “moral, legal, and religious traditions of the Brazilian people” and argued that gambling had led to “abuses harmful to morality and public decency.”

Fast forward 69 years – what now for physical casinos? The issue has returned

to the Brazilian Senate, following the Constitutional and Justice Commission’s approval of Bill No. 2,234/2022, which seeks to legalise physical casinos, bingo, the Jogo do Bicho, and horse racing.

At the SBC Summit Latinoamérica 2024, Senator Irajá Abreu, the bill’s rapporteur, discussed the topic alongside industry leaders, including Leonardo Benites, CEO of Propane and moderator of the panel ‘A Roadmap to Land-Based Casinos in Brazil’.

A NECESSARY TRANSITION Senator Abreu noted that Brazil needs a transitional period to regulate online gambling first, allowing the sector to grow sustainably. He emphasised the importance of legalising physical casinos, likening the process to Brazil’s agricultural sector, which underwent regulation two decades ago and now stands as a cornerstone of the national economy.

Abreu further argued that gambling already occurs clandestinely in Brazil, and regulation would be key to minimising its connection to organised crime. He predicted that legalising physical casinos would generate 1.5 million jobs and R$22bn in taxes.

However, despite Abreu’s optimism, the Senate postponed the bill’s vote to 2025.

On December 4th, Senator Eduardo Girão filed a motion to delay, citing the ongoing investigations by the Parliamentary Inquiry Commissions (CPIs) into match-fixing and sports betting.

22

THE HOT TOPIC

uncertain. However, one thing is clear: prohibition has not solved the problem. Instead, it has fueled the illegal market, keeping gambling beyond the government’s reach.

Senate President Rodrigo Pacheco explained: “If the urgency motion were rejected, approval this year would be impossible, leaving the decision to the next administration and leadership.”

As Teles summarized: “Strong legislation can achieve what prohibition never could: control, oversight, and public benefits.”

Abreu remains confident that Brazil has a unique opportunity to learn from mature international markets.

The debate over legalizing land-based casinos in Brazil highlights a crucial shift in the nation’s approach to gambling. While historically rooted in moral opposition, the growing recognition of the benefits of regulation — such as economic growth, job creation, and reducing organised crime — has gained traction. Legalising casinos could unlock significant tourism potential and provide a safer, more transparent environment for gambling.

“Brazil will become a global tourism powerhouse,” he declared, arguing that regulating casinos is critical to unlocking this potential.

The senator also pointed to the paradox of Brazil regulating online gambling before physical casinos. For him, online regulation underscores the urgency of addressing physical gambling venues as well.

Despite delays in legislation, the momentum for change is clear. If managed responsibly, this transition could mark a turning point, balancing Brazil’s cultural heritage with modern economic needs and creating a sustainable, regulated gambling industry for the future.

HISTORICAL RESISTANCE AND MODERN REALITIES Legal experts also weighed in on the debate.

Vitória Lopes, a lawyer for Bet77, highlighted the historical resistance to gambling in Brazil: “Gambling has long been seen as a moral threat, blamed for encouraging harmful behaviours and undermining social values. Yet, this duality reflects a cultural tension: gambling is both a legitimate cultural activity and a target of moral critique.”

The coming years may finally see Brazil moving past the rhetoric of 1946 to embrace a regulated future for gambling — one that balances cultural heritage, economic growth, and social responsibility.

Lopes added that Brazil’s prohibitionist approach has failed to eliminate gambling, instead driving it underground: “History shows that regulation, not prohibition, is the best way to ensure safety, transparency, and societal benefits.”

Bárbara Teles, legal counsel for Rei do Pitaco, echoed this sentiment, arguing that gambling is ingrained in Brazilian culture. “Whether it’s buying a lottery ticket or placing a small bet, gambling is part of everyday life,” she said.

Teles criticised the notion that banning gambling eliminates it: “Prohibition is a flawed strategy. Despite legal restrictions, gambling persists in informal markets, proving that strict bans are largely ineffective.” She advocated for strong legislation and regulation as tools to combat illicit activity and protect players.

Senator Irajá Abreu

With heated debates in Congress and the Senate, the future of physical casinos in Brazil remains

23

FEATURE

SBC LEADERS ISSUE 35

SBC Leaders speaks to STELLA VOULGARAKI, Chief People Officer of Betano’s parent company Kaizen Gaming about how staff recruitment and retention helps build a brand and build a company

Words by MARTYN ELLIOTT

H

ow have you found working for a company in the igaming industry?

What I find particularly interesting is our customer centric approach, as it shapes and influences our entire organisation’s culture. It’s not just about how we engage with clients, but also about how we interact with one another within the company.

For example, our marketing department runs numerous campaigns to connect with customers, keeping them engaged and fostering brand loyalty. Similarly, in internal communications, we run campaigns aimed at engaging our people and we organise programs and activations to boost employee satisfaction and improve retention rates.

Customer lens is one of Kaizen Gaming’s core values. It’s about stepping into other people’s shoes, understanding their needs and

desires, and taking action to create value for them. If you think about it, this approach shouldn’t apply to customer relations only. It should extend to all our day-to-day interactions.

When it comes to recruiting, obviously, you guys have done a lot of it. How do you tell people ‘this is why you should come and work for us’?

Employee wellbeing is a priority for us. The Kaizen Campus is the first building in Greece with a WELL certification showing our commitment to the health and well-being of our people. Apart from the building itself, we have set in place our own well-being program, ‘Better You’, which promotes health and safety, physical and mental wellbeing, and inclusion. Indicative initiatives include access to a nutritionist, a psychological support hotline, first aid sessions, and inclusivity seminars.

24

FEATURE

25

FEATURE

SBC LEADERS ISSUE 35

26

FEATURE

Diversity and inclusion are integral to our agenda. With 2,700+ employees from 42 nationalities operating across 17 countries, this is a vital part of who we are. We embrace our people’s differences and we empower them to bring their full selves to work.

As a fast-growing company, we offer ample career growth opportunities. In 2024 alone, we have promoted over 500 employees and continue to hire more than 1,000 annually.

Learning and development are also key; we have established a leadership academy for managers, provide scholarships for postgraduate students, and offer access to a wide range of online courses.

You’re a cutting edge firm going global.

What do the latest generation of employees want? How do you tend to their needs as well as the company’s own?

The average age at Kaizen Gaming is 33.

Four generations are represented within the company and it’s essential to adapt our policies, events and overall approach to meet their needs.

Yet, millennials are the biggest part of our company. And what do they want? They want more flexibility, work-life balance and connection to the company’s purpose. I believe this is one of the reasons they are joining Kaizen Gaming, because our values are part of our reality, shaping our recruitment and performance management processes.

The younger generation values less formal communication and more authentic relationships. This is something that Kaizen Gaming offers. It isn’t the structured, typical work environment that other big companies have. We have maintained the startup logic in the way we communicate and connect with each other. And there are a lot of events, a lot of parties, a lot of opportunities to collaborate and be together; different small things that make you feel connected.

take place twice a year, we gather insights into employee experiences.

Our 360° feedback process helps us understand their needs and address them swiftly. Conducting engagement surveys three times a year allows us to stay on top of changes, mitigate risks and instill best practices, while making changes where needed.

And are people happy to answer these surveys?

Our average participation rate is approximately 90%. Our approach is to share the results of the surveys with our people and show them that we take initiatives to improve on matters they have pointed out.

In business, generally, people may not enjoy participating in such surveys when they feel that their feedback is ignored. We try to make people feel that their voice is heard. We acknowledge that we can’t get everything right, but seeking feedback and acting on it are central to our culture and efforts to continuously improve.

How does the public perception of the gambling industry, and the fact some people really don’t like it, affect recruitment?

We are actually hiring approximately 1,000 people per year, with many more people applying for our open positions. Most candidates view us as a rapidly growing company, through which they can pursue their personal growth. To many candidates we are particularly attractive due to our strong connection to the world of sports.

Do the CSR initiatives you undertake help the perception of the industry?

It must be quite tricky for you to establish values that everyone agrees on.

We undertake a lot of CSR initiatives in partnership with our Betano-sponsored clubs. Such initiatives include raising awareness on important issues, such as early breast cancer detection, improving hospital treatment conditions, and promoting social inclusion through sports.

Establishing shared values in a fastgrowing company can be challenging, but we prioritise feedback to foster alignment and drive shared understanding. Through engagement surveys during recruitment, onboarding and performance reviews which

An excellent example of the latter has been INZONE, a sensory room we created at Dragão Stadium in partnership with FC Porto and the School of Health of the Polytechnic Institute of Porto, to make the stadium more accessible for fans with sensory challenges.

27

FEATURE

SBC LEADERS ISSUE 35

“

The average age at Kaizen Gaming is 33 and four generations are represented within the company they play a critical role in team cohesion.

Post-COVID, many employees feel disconnected from their companies, which increases the likelihood of moving elsewhere.

Managing turnover is a priority for us and despite our size, we maintain it relatively low.

This year, we launched the Kaizen Foundation, funded exclusively by Kaizen Gaming, to further enhance our social responsibility efforts.

So far, key projects include completing the renovation of a critical section of the Pitesti Paediatric Hospital in Romania and commencing the extensive renovation of Penteli Children’s General Hospital in Athens, Greece, with a total investment exceeding €4 million.

You have a bunch of ‘Great Place to Work’ certificates. What was the process for earning those?

Through such initiatives, I believe people recognise that we are a socially responsible company and that makes us an attractive employer too.

The ‘Great Place to Work’ certifications and ‘Best Workplace’ awards are based on the anonymous answers of our own people and evaluation conducted by the Great Place to Work organisation. These certifications give you confidence that what you’re doing is right and also hold value for potential employees, as they validate the authenticity of our culture and our positive environment. Recently we were announced as one of the 100 Best Companies to Work for in Europe for the third time.

You obviously have your HQ in Greece. Do you have many offices everywhere else, or do people work remotely?

We have over 1,300 people in our HQ in Athens, but we also have many offices worldwide. Our second largest office is in Lisbon, Portugal, with over 400 team members. We have an office with over 150 people in São Paulo, Brazil, and we also have offices in Romania, Bulgaria, the Czech Republic, Malta, Colombia, Argentina, Peru, Mexico, Canada and Nigeria.

How do you encourage diversity when it comes to recruitment?

We will not choose someone just because we want to increase the quota. What we do is that we make our services more accessible to different types of candidates. We want to recruit different nationalities, we want to have more women, but we are trying to be an organisation that walks the talk and supports diversity through our policies, not just through hiring.

What’s the work model and how did you get to it?

We follow a hybrid work model, which splits between three days in the office and two days from home. We want people to connect with each other and with our brand, so we want them to be present at the office, collaborate in person and enjoy time together, but at the same time provide them with the flexibility and work-life balance they seek.

I think what we are doing is fairer. It is called equity. You need to create and provide similar opportunities for people to have access to the same growth or position.

You have 2,700 people and you’re recruiting a thousand every year? What’s the mid-term plan, three to five years? How big do you see yourselves becoming?

However, policies vary by department and role.

For the Tech and Product teams the policy is one day in the office and four remote. Tech people can work for a company in the United States, UK, Germany, or anywhere else. They are more used to fully-remote contracts. To remain an attractive employer in this global market you need to follow the trend, which in this case is less time in the office. On the other hand, managers are in the office five days a week, as

We aim to operate in 26 countries by 2026.

Today, we operate in 18 countries. Accordingly, this plan will lead to an increase in headcount, but it really depends on how big each market will be for us.

28

POSITION YOUR BRAND ON THE

LEADING INDUSTRY NEWS SITE IN BRAZIL PREMIUM NEWS COVERAGE AND HIGH-END FEATURES. TELL YOUR STORY IN BRAZIL WITH SBC. SCAN HERE TO ADVERTISE WITH US

SBCNOTICIAS.COM

SECTION

SBC LEADERS ISSUE 35

CASINO POWERED BY

ON THE FOLLOWING PAGES 32 36

Interview: Greentube CFO Michael Bauer Feature: Crash games crazy in Latam 30

CASINO

THE SOLUTION LIES WITHIN As Argentina’s politicians take the politically easy route towards an advertising ban, SBC Noticias Senior Journalist FERNANDO NOODT asks what can be done?

According to the European Gaming & Betting Association “nearly €1 billion in online gross gaming revenue in Italy is lost to black market websites annually, equivalent to the combined regulated online gambling revenue of eight other EU member states.”

T

Argentinian Congress bid 2024 farewell by pushing for a gambling advertising ban, which is one vote away from being enforced. That raised a serious concern in the iGaming industry: there is work to be done.

The country is going through a debate that seems to be a canon event for every iGaming market.

While only a few have actually gone all the way, ad restrictions have been enacted in the Netherlands, or countries with a more familiar idiosyncrasy to Argentina, like Italy or Spain.

However, as the latter found out before overturning such regulation, blanket bans are far from being a solution.

While politicians hide behind noble causes such as protecting vulnerable audiences like minors or problem gamblers, it’s arguable whether that’s their real concern. Most just leap on the controversial reputation of the industry to score easy points and side against it. The only other to benefit from this approach? The black market.

Insufficient action by the government could be a factor, but Italy’s Customs and Monopolies Agency undertook a blocking order for “over 9,800 unlicensed gambling websites in 2023 alone.”

That raises the question of whether there’s enough awareness of which operators are licensed and which are not. Given they can’t promote their business at all, the answer is probably no.

Does that mean iGaming companies should have carte blanche to promote their brands everywhere imaginable?

Definitely not.

And even though Italy is weighing up whether to go back and overturn the 2018 advertising ban, it took them six years to even consider it.

In most South American countries, including Argentina, operators have a heavy presence in professional sports (especially football), TV, social media, and pretty much everywhere else.

According to lawmakers, this overexposure drives the vulnerable audience to gaming websites, whether they are legal or not.

31

Should that be the case, legit websites must enforce measures to ensure minors can’t access and play. Although technically challenging, biometrics is one way to go, and it is actually included in the Argentine bill.

But payment methods also play a key role for externalities to thrive. While they might not be legally restricted, allowing credit card and especially cash (through payment coupons) deposits sets the perfect storm for anyone to be able to bet. In a country with a 97.6 per cent rate of banked adult population, allowing cash deposits seems like overkill.

International experiences have already highlighted there is a lot to improve for the iGaming segment. With many countries in Latin America yet to legalise it, maybe it’s time for operators to innovate in customer retention and acquisition, self-regulate and avoid facing crippling restrictions.

Scan here for more from SlotBeats

CASINO

SBC LEADERS ISSUE 35

32

CASINO

OUT OF THE SHADOWS Greentube Chief Financial Officer MICHAEL BAUER throws the spotlight on Brazil’s casino games market and spies a big opportunity Words by CHARLIE HORNER

I

With a grey online market only really burgeoning in the last five years and Brazil traditionally being opposed to land-based casinos, Bauer argues that more education is needed with players in the nation so that they can understand the full scope of the sector.

n the build up to the Brazil market launch, so much was made of the player base in the nation. Fanfare was, and still is, to an extent, laserfocused on the sports-crazed audience and the extraordinary opportunity that this creates for operators.

It is, of course, true that the Brazilian population is made up of fervent sports fans, especially in football, futsal and basketball, but it often goes under the radar that online casino gaming is also live and regulated in the country.

It is essential for Bauer and the wider Greentube team to be fully aware of the player dynamics in Brazil; the supplier, which is the digital arm of NOVOMATIC, has big ambitions for Brazil.

The newly regulated online casino market creates an even greater opportunity for operators. However, Michael Bauer, Chief Financial Officer at Greentube, highlights the fairly limited level of knowledge among Brazilian players of the online casino scene, owing to a decades-long ban on landbased and online casinos.

“What we’ve seen is that Brazilian players prefer classic games such as fruit slots, or other titles with less complex mechanics and features,” says Bauer.

“This is evident in the huge popularity of video bingo and crash games, content which offers straightforward gameplay.

I think this preference has to do with the level of maturity of the market.”

“I think in three-to-five years, our ambition has to be to be at least a top five supplier in the market,” he asserts.

Greentube has already made commercial strides since the launch of regulated iGaming in Brazil, penning deals with global operators such as Betano, bet365, Entain, Superbet, and SkillOnNet. But targeting global operators alone is not enough, Bauer tells SBC Leaders.

The supplier has hired a commercial team in Brazil, charged with generating business with local operators who have strong ties with players and who intrinsically understand the wants and needs of local online casino customers.

33

CASINO

SBC LEADERS ISSUE 35

the games already familiar to players in the country. Together, I think we will have a very strong offering.”

Bauer explains: “The focus for us is to build on the existing global customer network that we have, but at the same time, try to get a foothold in the local market, because it is, really, really strong and we want to have the local operators in our customer portfolio.

Another angle of attack on the market is Greentube’s subsidiary Capecod, a studio and aggregator which it acquired around three years ago. This, alongside the new Mynt tech stack, makes up another part of Greentube’s mission to be a leading supplier of not only games, but technology in Brazil.

“This will take some time. Therefore, it’s also great to have shows like SBC Summit Rio where we can network, address relevant stakeholders and make sure to build connections in the market.”

“Via Capecod we will be able to offer their portfolio of crash games and slots, Greentube’s existing slot and video game portfolio and games on our new technology stack Mynt. So, it will be the largest portfolio of content on offer that we have in the group, and it will all be available via one integration.

NOVOMATIC TARGETS BRICK AND MORTAR Though it may take time to build up that side of the business, Greentube is certainly in it for the long haul, and Bauer is adamant that it can achieve its ambitions of being a top five supplier.

TACKLING THE TAX BURDEN

After all, the company has a strong presence across the wider Latin American region in markets such as Peru, Colombia, Mexico and Chile. There are huge differences between consumers in each nation, though, so Greentube is required to localise to win long-term.

Though ostensibly a huge opportunity, with the market launch having been a long time coming with over five years of political wrangling to get to this point, the regulated market has had plenty of criticisms.

“We managed to be one of the first suppliers to deliver games to the Brazilian market, being fully certified and live on January 1st, and our ambition is really to be one of the top suppliers in the country.

There have been dissenting voices surrounding Brazil’s tax framework, particularly as a retrospective tax has been mooted. Bauer explains that some of the tax implications have created unnecessary complexity for both operators and suppliers.

“We are aware that this is not yet the case, but we strongly believe that we can replicate the success in other Latin American regions, where we have quickly established a strong position, and make Brazil one of our core markets,” Bauer continues.

“We have to evaluate what makes more sense for us,” he says. “Do we have a local company there or not? For the time being, we’ve decided not to because, at the end of the day, it doesn’t make any difference from a tax deduction perspective. This does not mean that we will not go for a local company in the midterm, but for the time being, that’s the case.”

“This new local regulation has opened up really big potential for us, so of course we want to grab a piece of that pie and become successful there.”

There are other regulatory issues that Bauer raised, such as not having an Ontario-style grace period for those transitioning from the grey market to the regulated space, but overall, he remains positive about the market and Greentube’s prospects there.

As well as hiring a local commercial team and ensuring its gaming content meets the needs of local players, Greentube believes it has an ace up its sleeve. Noovomatic, the company’s parent, is targeting a land-based presence in Brazil depending on the outcome of the current legislation making its way through the executive branch.

“Could it have been done a bit better? Yes, I think so. But at the end of the day, we’re still happy that there’s regulation in place.”

This, Bauer argues, could give Greentube a significant advantage over others who want to be top of the supplier tree.

So, as the market finally went live on January 1st, Greentube and others entered the newly regulated space, setting up a new era for Latin American iGaming and cementing the region as one of global gambling’s most important for years to come.

“Novomatic is also targeting Brazil from a land-based perspective, which will also help us to build market pressure, to make

34

CASINO

“

Novomatic is also targeting Brazil from a land-based perspective, which will also help us to build market pressure For now, Greentube remains confident in its long-term outcomes but does concede that sports may continue to dominate the conversation over the first six months or so.

As Bauer concludes: “When it comes to rankings of operators, there are a few global ones that are pretty strong in the market, and they have all the existing sponsoring deals with the football clubs, which is super important. It does mean that it is a very sportsbook driven market and I don’t expect that to change immediately.

“I think, nevertheless, that in the midterm, there will be some more specialised and focused casino brands coming with an offering that is especially appealing to casino-first players. There is a chance now for these online-first casinos in the markets to grow, because so far, there was not really a possibility for them to advertise and promote themselves but now they can push on and take advantage of this fantastic opportunity that Brazil offers.”

35

CASINO

SBC LEADERS ISSUE 35

CRASH

GAMES CRAZY

SBC Leaders speaks to the leading supplier of crash games, Spribe, a local operator in the shape of Mexico’s Winpot, and LatAm-focused affiliate GameLounge to judge the progress of crash games in Latin America

Words by DANNY LEE

C

rash games are a growing phenomenon around the world. Africa’s gaming operators have almost become one-game specialists – with Spribe’s Aviator absolutely dominating the region’s offerings. While slots have a stronger heritage in Asia and Latin America, the rise of crash games is a phenomenon everywhere – with Aviator ruling the roost.

With Brazil launching regulated online casino games for the first time, crash games will be a vital part of every operator’s arsenal.

“Aviator is undoubtedly the leading crash game in Brazil and Latin America, paving the way for this innovative game format,” says Game Lounge’s LatAm specialist Natalia Pisoni. “However, we have noticed that other titles, such as Smartsoft’s JetX, which also uses an aviation theme, and space-themed games like BGaming’s Space XY and Pragmatic Play’s Spaceman, are increasingly sought after by users, with their popularity growing rapidly.”

She says that she has also seen a rapid growth in the number of users playing Games Global’s The Incredible Balloon Machine in some Latin American markets.

36

CASINO

“

It is undeniable that the rise of crash games is a phenomenon throughout Latin America with enormous potential for online casino operators

David Natroshvili, CEO, Spribe

37

CASINO

SBC LEADERS ISSUE 35

and strategy involved in crash games mirrors the excitement of placing bets on live sports.

“It is undeniable that the rise of crash games is a phenomenon throughout Latin America with enormous potential for online casino operators,” continues Pisoni. “The audience that plays on online casinos and betting platforms is not the same as it was a few years ago. Traditionally, it is believed that to win in a casino game or become an expert, a lot of experience is required. But crash games break this logic by offering a very fun product with high chances of winning right from the first play.”

“This makes them an excellent entry point for sportsbook players who may not have engaged with traditional casino games, creating a bridge between the two.”

Localisation is also considered an integral part of Latin American appeal when it comes to marketing games in the region, and Pisoni stresses an importance for crash games to become tailored to a specific market.

This simplicity is a key aspect to the attraction of crash games, offering players the chance to play game rounds quickly, while holding complete control over the gameplay.

“It is very important for Latin players to feel that the game was specifically designed for them,” says Pisoni. “If this doesn’t happen, it is crucial that the product is presented in the right way to maximise reach, breaking down cultural barriers.”

Yoni Sidi, CEO at Winpot Group, an operator in Mexico’s regulated market, says: “Latin American players are drawn to instant gratification, and crash games can offer just that. They have short rounds with significant payout potential, all wrapped in a user-friendly way.

Sidi is also certain that catering crash games to individual cultures within the region is “crucial” for success, stating that “incorporating regional symbols, music, or even humor can make the game more relatable to Latin American players”.

“These games are often easy to play on smartphones, which are more accessible than computers in many areas of the region. Their quick, straightforward gameplay means they can be enjoyed in short bursts, aligning well with the on-thego lifestyle of many players.”

Once again, sports can have a huge part to play in allowing crash games to be tailored to specific markets.

“Localisation is critical when marketing crash games in Brazil. This includes incorporating culturally relevant themes, imagery, and promotional strategies,” Natroshvili observes.

UNIQUELY POSITIONED TO ATTRACT SPORTSBOOK PLAYERS Latin American markets are somewhat dominated by sports betting, with football an obvious highlight. The love of the game runs deep.

“Marketing efforts should consider Brazil’s love for football and social interaction, leveraging partnerships with local influencers and sports personalities.”

This is where crash games can really come in and rival slots for player engagement, due to the format’s ability to “draw players to the thrill of their high-risk, high-reward structure”, according to Sidi.

THE ROLE OF INFLUENCERS On that notion of influencers, online casino suppliers and operators around the world continue to leverage the acquisition power presented by streamers and celebrities, who can create a “viral spread” for a crash game’s reach in Latin America, according to Sidi.

That sentiment is shared by David Natroshvili, CEO of Spribe, a company that already has experience with offering crash games in Brazil, due to the supplier’s interactions with grey market operators.

“Latin American influencers create a sense of trust and authenticity, which is critical in the gaming space. They showcase the excitement and dynamic nature of the format, leading to a viral spread of these games.”

“Crash games are uniquely positioned to attract sportsbook players because of their real-time, decision-based nature,” Natroshvili states. “So the adrenaline

38

CASINO

Natroshvili confirmes this is also the case for the Brazilian market, where the country’s social media usage is “amongst the highest in the world”.

Natroshvili agrees referring to crash games as “set to become a major part of the iGaming landscape in Latin America and Brazil”.

The CEO suggestes that partnering with local influencers has the power to “boost brand visibility, drive player acquisition and generate buzz” for crash games.

“As the market matures and regulations take hold, we anticipate even broader adoption of crash games due to their universal appeal and accessibility,” he says. “Innovations like AI personalization, localized content, and deeper integration with social platforms will drive engagement further.

Looking into how the evolution of crash games will develop in the coming years as the region’s largest regulated online gambling market prepares to open its doors, Pisoni says she has “no doubt that crash games are already changing the landscape of the igaming industry in Latin America”, noting that Brazil will be a “key player” in this growth.

“Brazil, as the largest market in the region, will likely lead this evolution, with crash games playing a key role in shaping the future of online gaming in the country.”

Natalia Pisoni , GameLounge

39

SECTION

SBC LEADERS ISSUE 35

SPORTS BETTING POWERED BY

ON THE FOLLOWING PAGES 42 48 52

Interview: 888Africa CEO Christopher Coyne Interview: Betcris CEO JD Duarte Thought leadership: Soft2Bet Sales Director for LatAm Nicolas Campano 40

SPORTS BETTING

WHAT SKY BET AND ESPN BET CAN TEACH GLOBO, BAND AND SBT SBC Noticias Brasil Editor RICARDO ASSIS looks at the history of media-betting convergence plays Band, the company plans to use its broadcast reach to drive traffic to the platform. Grupo Silvio Santos expects to launch its betting platform in the first half of 2025.

P

eanut butter and jelly, rice and beans—some things just seem made to go together, right? That’s how media companies are viewing sports betting. Why not combine the reach, talent pool and personalities of a media company with the technology and expertise of sports betting providers? It seems like a natural choice, doesn’t it?

With this in mind, three of Brazil’s largest media conglomerates are rubbing their hands together as they prepare to dive headfirst into the sports betting market.

Globo, Band and SBT, the leaders in Brazilian free-to-air TV, have teamed up with some of the industry’s top providers to claim their slice of the market.

Band is leading the charge. The São Paulo-based company has partnered with OpenBet to launch BandBet. So far, it’s the only broadcaster with a fully licensed and working betting platform.

On its social media channels, BandBet has been leveraging the network’s journalists, actors and influencers to promote the brand.

Grupo Silvio Santos, the owner of SBT, has also teamed up with OpenBet to launch the “Todos Querem Jogar” platform. Like

Globo, on the other hand, has opted for a partnership with MGM Resorts International to roll out BetMGM. As Brazil’s undisputed TV ratings leader, Globo has yet to provide details on how the operation will work. However, MGM has made it clear that it is counting on Globo’s reach — approximately 70m people daily across its various platforms — to create a product with significant scale, resources and access.

The idea is clear: combine the expertise of MGM’s iGaming subsidiary LeoVegas with the massive media influence of Globo.

With an estimated revenue of R$240bn in 2025, the Brazilian sports betting market seems to be the next big thing. However, while the marriage between betting providers and media companies seems simple, reality often proves more complex.

ESPN, the global sports media giant, partnered with Penn Entertainment to launch ESPN Bet, its licensed sportsbook in the US. ESPN’s goal was to compete with industry leaders like DraftKings and FanDuel. With massive reach across television, streaming and the internet, along with a robust portfolio of broadcasting rights, ESPN seemed to have everything it needed for success. Yet, things aren’t going as smoothly as anticipated.

Since signing a $2bn agreement, Penn has struggled to win over players. While DraftKings and

41

FanDuel dominate the market with 38 per cent and 36 per cent market share, respectively, ESPN Bet holds just 3.2 per cent. In July of this year, Penn announced the layoff of 100 employees from its Penn Digital division.

The example of Sky Bet tells a very different story. According to research conducted in 2022, three out of ten bettors in the UK have an active account with the platform. It’s worth noting, however, that Sky Bet is a much more mature company.

In July 2000, British Sky Broadcasting (BSkyB) acquired the Sports Internet Group, which owned the small betting company Surrey Sports. In 2002, Surrey Sports underwent a rebranding, eventually becoming the Sky Bet we know today.

Sky Bet was acquired by FanDuel-owner Flutter as part of the $6bn deal for Stars Group, which effectively put an end to Stars’ attempt to recreate Sky’s success with FOXBET in the US – another failed media/betting convergence play.

Success for Globo, Band and SBT is far from guaranteed.

Scan here for more from SBC News

SPORTS BETTING

SBC LEADERS ISSUE 35

FLYING HIGH

42

SPORTS BETTING

888Africa CEO CHRISTOPHER COYNE is on a five-year mission to boldly take Evoke where no European iGaming operator has gone before

Words by STEVE HOARE

N

ext month (March) will mark three years since 888Africa was founded as a joint venture between the management team and Evoke. The deal runs for five years and at the end of that period, Evoke has an option to buy out the management team. 888Africa CEO Christopher Coyne is acutely aware of the ticking clock. He is a man in a hurry.

After signing the contract in March 2022, it took six months to launch in its first market and by January 2023, it was live in four countries. At the end of 2024, it had more than doubled net revenue on the previous year to around $50m. It is the fastest growing business within Evoke - by far.

“We’re trading beautifully,” says Coyne. “And the expectation for next year is that we double again.”

In December, 888Africa launched in Malawi, its seventh market following its forays into Angola, the Democratic Republic of Congo, Kenya, Tanzania, Mozambique, and Zambia. It will launch in Ghana in Q1 and you can expect it to add more acquisitions to build out the brand portfolio and the geographic footprint.

You could be forgiven for assuming that 888Africa is pursuing the pan-African dream that has downed all but a very select few but Coyne and his team, led by Chief Growth Officer Alex Rutherford, are selective with their targets.

“We tend to go where we feel the level of competition is one that we can meet positively,” says Coyne.

For example, they have shied away from Nigeria because they consider it to be too congested, and South Africa, because you need a monthly marketing spend of “millions and millions and millions of dollars” to compete with the likes of Hollywood Bets, Betway, or Lotto Star, according to Coyne.

43

SPORTS BETTING

SBC LEADERS ISSUE 35 Miguel Bento, Chief Commercial & Marketing Officer, SL Benfica with Christopher Coyne, CEO, 888Africa

“

It’s an African-framed, African-set cooperative who are working on this challenge

44

SPORTS BETTING

the political environment. The latter is, of course, unpredictable.

Mozambique is 888Africa’s biggest and most successful market to date and together with Angola, it is one of five African countries that speak Portuguese.

Beyond the Portuguese-speaking duo, the company’s other focus has been on English-speaking countries – Kenya, Malawi and Zambia.

“There has been quite a lot of turbulence in some of our markets recently, whether it’s Mozambique, which is suffering its worst period of unrest since the civil war, or Kenya, where there’s been plenty of mobilization on the streets in Nairobi over the last 12 months.”

Coyne says Malawi is an interesting market for them because 888Africa is one of three new operators to win a licence in the market – the others being Bolabet and Moors, a bookmaker from Zimbabwe.

He compares it to Angola, which was the operator’s last launch before Malawi.

Then finally, Rutherford and team will compare a new market to others where the company has been successful.

A ONE TRICK PONY? One thing that all these markets have in common right now is the success of Spribe’s crash game Aviator.

“Angola is a small market. It’s concentrated around Elephant Bet, Premier Bet and BantuBet. So they’re the three operators at the top of the tree.

That’s another kind of boutique market,” says the CEO.

“Other than perhaps two examples, every top five operator in the top 15 markets in Africa has Aviator as their main offering,” says Coyne.

“Otherwise, it’s the English-first markets.

We’ve steered clear of West Africa.

We’re not in the French markets. That’s a deliberate strategy,” he says. “We feel there’s a complexity to the French markets, with regards to the regulations and relations with the regulator. So typically we’ve said ‘OK, let’s concentrate on Central and Eastern Africa’.”

On the surface that leaves operators dangerously reliant on one supplier but Coyne says the team is working hard to broaden the portfolio with games from Evolution Gaming and Pragmatic Play, while strengthening the sports book with Check Media, which is well known for working with Sky Bet to create faster and more efficient accumulators.

Furthermore, Premier Bet, which is one of the few pan-African success stories with over 20 markets, has made its heartland in French markets such as Senegal and the Ivory Coast.

In September last year, 888Africa signed a sponsorship agreement with leading Portuguese football team Benfica and on Champions League nights, customer volumes shoot up.

Rutherford’s market intelligence and customer intelligence unit sits at the heart of the company. The Chief Growth Officer is a founding partner of 888Africa, joining from Premier Bet with Coyne in 2022. The pair have a checklist for market entry: firstly, does it have a total addressable market of more than $100m? Secondly, is it a regulated market? The company will only operate where it can obtain a licence.

“Lots of customers come in to bet.

They just place an accumulator on the Champions League matches and then go straight to Aviator! But that’s absolutely where the market is. Everyone in Africa, all the big operators have that same experience in terms of Aviator being the lead product.”

So, what happens when people get bored of Aviator and move on to the next craze?

“Then we think about the relationship that we could have with the regulator. So, is this a positive regulator or a difficult regulator? In some jurisdictions you can wake up and overnight they have turned the industry on its head,” continues Coyne.

“They came from sports to Aviator. If they tire of Aviator, they’ll go back to sports,” he says confidently. “What’s not dampening is the want of the African consumer to put a bet on or to have a game. Our volumes are growing massively.

Then there’s the tax situation, level of competition, the cost to compete and

45

SPORTS BETTING

SBC LEADERS ISSUE 35

“This year, we acquired our three millionth first time depositor (FTD). We’re acquiring in the realm of 200,000 customers a month, every month. That’s huge numbers in Africa.

“It’s all founded on smart markets selection, a really really strong executive leadership team and then a high quality team of African experts – payments experts for Africa, customer service experts for Africa, social media experts for Africa, products experts for Africa, people who really understand UX/UI, research specialists for Africa. So it’s an African-framed, African-set cooperative who are working on this challenge.”

“

In some jurisdictions you can wake up and overnight they have turned the industry on its head

Little by little, the team is optimising every facet of the operation. It will take the quick wins where it can, of course. For example, after acquiring BetLion in 2023 its first move was to add Aviator, which immediately boosted the figures. But after inheriting an operation that was based on FSB Technology (recently acquired by EveryMatrix), it launched Malawi on Newton’s gaming platform with a Digitain sportsbook. It’s a partnership it hopes to repeat in other jurisdictions.

Newton is the technology supplier behind Romanian operator Winner, which Evoke acquired in August last year.

888Africa turned to Newton after a recommendation from Evoke Chief Strategy Officer Vaughan Lewis.

“We think the Newton gaming platform can be compared positively even to the Playtech gaming platform. We think it’s that good as an iGaming solution,” says Coyne. “Malawi will be our first first market on Newton and Digitain and we’re very excited about how that can power our growth in 2025.”

46

BUILDING A BRAND PORTFOLIO The BetLion acquisition broadened the 888Africa brand portfolio. However, Coyne and team made a crucial branding decision very early on when it chose the 888Bets brand over the 888Sport brand, which had been used throughout Europe.

“If you look at Africa, 888Sport just didn’t cut through. We did market testing and 888Bets was much more salient,” explains Coyne. “If you look at the leading African brands, there’s BetPawa, Premier Bet, Betway, Bet9ja, Elephant Bet, Hollywood Bets, BantuBet, BolaBets, right?

So, we’re going up against competitors that have got Bet or Bets in their name.”

So 888Bets is the predominant brand across most markets, while Bet Lion is active in Kenya and Zambia. In its strongest market of Mozambique it also launched Bacelabet – Bacela is a portuguese word meaning ‘the little bit extra’.

“So when you go to the market and you buy your product,” explains Coyne, “the extra peanuts that you get would be the bacela. So the whole proposition behind it is to be that little bit extra. So in Mozambique, we think about 888Bets being the premium international quality brand and we think about Bacelabets being the local hero.”

The next acquisition will supplement the brand portfolio and add another market. But Coyne is keeping tight-lipped for now in expectation of signing the deal in or around ICE in Barcelona.

Evoke describes its investment in 888Africa as “low capital, high impact”. Coyne is hoping that it will need a high capital investment to buy him out in March 2027. The clock is ticking but the 888Africa team is making swift progress.

SPORTS BETTING

SBC LEADERS ISSUE 35

LOCAL LEGEND Betcris CEO JD DUARTE talks us through a transformative 2024 as the company prepares to celebrate its fortieth year in operation

48

SPORTS BETTING

Words by LUCIA GANDO

L

atin America has leapt into the spotlight of the global gaming and betting industry in recent years, thanks to a significant wave of legislation sweeping across the continent.

Experienced European operators and suppliers – forever on the lookout for new markets offering high-growth opportunities – have turned their attention to the Americas. All of them are years behind Betcris, which this year will celebrate its 40th anniversary. It has become a robust and regionally-iconic brand.

During these transformative times, as Latin American countries established regulations inspired by European successes to unlock the full potential of their gaming and betting markets, new partnerships and innovative technologies have promised to reshape the regional landscape permanently.

In this context, Betcris stands out as one of the most reliable brands, owing to years of groundwork in the region that have cemented its status as a local legend. Originating in Costa Rica, the brand’s reputation has been forged since its inception in 1985, pioneering the region and reigniting Latin America’s passion for sports through an avenue of entertainment previously unexplored in these territories.

“2024 was crucial for optimizing our operations,” Duarte explains, highlighting the company’s focus on strengthening its casino product offerings and optimising internal processes to identify efficiency opportunities.

One of the major milestones was the implementation of artificial intelligence (AI) within the brand’s operations.

This included not only internal task optimisation but also deeper analysis of player behaviour to enhance personalisation of offers and strengthen commitments to responsible gaming by detecting any behaviours that fall outside compliance standards.

While Betcris is known for collaborating with competitors, suppliers, regulators, and other industry representatives, it also considers itself a champion of transparency and ethics with regards to its relationship with consumers. Duarte says this strengthens trust in the brand and solidifies its market leadership.

Transparency and ethics is one thing but the key to building trust is understanding the needs and passions of the Latin American audience. Interestingly, Duarte says that AI has served as a key tool to enhance this insight.

“Artificial intelligence has revolutionized our operational efficiency, improving both quality and response times across all departments. Every leader identified key areas where AI could be implemented, proposing at least two processes for improvement, which has yielded impressive results,” Duarte states.

In 2025, as Betcris celebrates four decades of operations, SBC Leaders speaks with CEO JD Duarte, who describes the past year as “full of achievements and progress,” not only for the company’s growth but also for building a more promising future for the industry as a whole.

Another differentiation developed during the year was the improvement of Betcris’s esports offerings.

A TRANSFORMATIVE YEAR Duarte emphasises that the positive projections for the coming months stem from a pivotal year for the brand.

“We recognise its innovative potential and sustained growth,” says Duarte.

49

SPORTS BETTING

SBC LEADERS ISSUE 35

However, while Latin American markets adapt to new technologies like AI, esports, and cryptocurrencies, Duarte says: “There’s still a long way to go for them to reach the popularity and impact of traditional sports among local fans.”

between fans and the leagues, promoting their long-term growth,” Duarte explains. As partners of the MLB and NBA for Latin American territories, Betcris collaborates to achieve this goal of enhancing fan engagement.

BUILDING A SPORTS BRAND

LOOKING TO BRAZIL

The brand’s expansion plans align with the regulatory rhythms of each market. While Brazil remains a key focus, Betcris has already established its leadership in Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Peru, and the Dominican Republic.

In most of these territories, the brand has reinforced its identity – and once again reinforced trust – through key sponsorship agreements with some of the regions’s most established sporting institutions.

“

The focus will remain on Brazil for some time, although there are still details to refine and regulations to better understand

“Sponsorships have had a transformative impact on regional sports. Teams and leagues have been able to use these resources to meet financial commitments, improve infrastructure, optimize processes, and even recruit key talent,” Duarte says.

Betcris is the exclusive betting sponsor of high-profile tournaments and clubs, including LigaPro in Ecuador, Ceará and Fortaleza in Brazil, nine clubs in the Honduran National Football League, the Mexican National Team, and Guatemala’s National League, among others.

“For international leagues, sponsorships represent an opportunity to connect with fans in key regional markets through campaigns that strengthen the relationship

50

As the undisputed leader in Latin America, Betcris has its sights set firmly on Brazil.

“The focus will remain on Brazil for some time – undoubtedly the largest market in Latin America – although there are still details to refine and regulations to better understand,” Duarte notes.

However, he stresses the need for a mindset shift: “Our activity should not be viewed as a dynamic of customer versus operator. We’re in the same boat, with the customer steering the direction and the operator rowing to satisfy their needs.”

Betcris has implemented protection policies that go beyond local regulations, offering tools that demonstrate its commitment to responsible gaming, aiming not only to safeguard customers but also to preserve the enjoyment of gaming and maintain a healthy relationship with it.

To ensure international coherence and practices that benefit transparency and compliance across all markets, Duarte advocates for a balanced regulatory framework throughout the region.

“We promote a collaborative approach with regulators to align interests and avoid regulations that could incentivise illegal gaming or harm stakeholders,” the CEO concludes.

SPORTS BETTING

SBC LEADERS ISSUE 35

HOW TO ENHANCE PLAYER ENGAGEMENT IN AN ERA OF FADING LOYALTY Soft2Bet’s Sales Director for Latin America, NICOLAS CAMPANO, explains how creating a personalised and engaging user experience is essential for attracting and retaining high-value customers, especially when the impact of traditional loyalty programmes is falling and businesses that strive to maximise customer lifetime values look for more up-to-date options

T

he iGaming industry is highly competitive and, in this environment, operators are constantly seeking ways to maximise revenues while maintaining sustainable business models that make optimal use of their resources and funds, and, importantly, guarantee strong levels of protection for their customers when it comes to responsible gambling.

This is especially true when we think of countries that have recently regulated their respective online gaming and betting sectors, as is the case in some of the most important markets in South America such as Brazil this month and Peru or Argentina in recent years.

As a leading provider of online gaming solutions, Soft2Bet is playing a key role in driving this approach; our content-focused gamification solution Motivational Engineering Gaming Application (MEGA) leads the way in creating personalised and engaging player

experiences and is essential in attracting and retaining high-value customers.

THE DIMINISHING EFFECTIVENESS OF ‘TRADITIONAL’ LOYALTY PROGRAMMES Traditional loyalty programmes have been the cornerstone of customer retention strategies for many years, with players accumulating points, but as the gaming industry has evolved and player expectations have shifted, these ‘traditional’ programmes are becoming less effective and their attractiveness to players is also being questioned.

Soft2Bet’s MEGA is different. Designed to address these challenges by integrating personalised, dynamic and interactive gamification elements into the UX, MEGA gathers deep insights from player behaviours and engagement patterns and creates a truly engaging and entertaining experience for its customers.

52

SPORTS BETTING

“

Soft2Bet’s approach to gamification is rooted in a deep understanding of user psychology and behaviour

IMPACT OF GAMIFICATION, BOOSTING RETENTION AND LTVS Soft2Bet’s approach to gamification is rooted in a deep understanding of user psychology and behavior. Through MEGA, Soft2Bet has introduced a variety of motivational mechanics, such as achievements, collectibles, and long-term goals and these have had a measurable impact on business outcomes.

For instance, players who participate in bonus-driven gamification features like Bonus Crab have shown significantly higher retention rates when compared to non-participating players over 14,

53

30 and 90-day periods. These trends underscore the power of gamification in keeping users engaged over the long term, fostering long-term loyalty and improving financial returns.

PERSONALISATION WITH CUTTINGEDGE TECHNOLOGY One of the key factors behind the success of MEGA and other gamification tools is personalisation. MEGA achieves this through a combination of innovative strategies, including the use of advanced artificial intelligence (AI), harnessing the data to deliver super-focused player experiences that resonate with individual users.

SPORTS BETTING

SBC LEADERS ISSUE 35

“

Traditional loyalty programmes are becoming less effective and their attractiveness to players is also being questioned

High level personalisation of the gaming experience is also crucial because it ensures players feel valued and understood, thus increasing engagement, loyalty and boosting retention.

This approach is exemplified by a recent Soft2Bet Gamification Showcase that featured a range of new motivational mechanics designed to improve player retention and enhance the overall gaming experience.

Our implementation of Bonus Crab also demonstrates this. The data we have recorded reveals that brands that have implemented Bonus Crab have experienced player acquisition and retention growth of 144 per cent, with the number of rounds played increasing 149 per cent with an average bet size of €3.

Some of the standout features in this showcase include: • Achievement-based rewards: Players earn rewards and recognition for completing specific tasks, reaching milestones, or achieving high levels of success.

• Daily challenges and missions: Players are presented with new challenges on a regular basis, encouraging them to return to the platform and engage with the games.

• Leaderboards and competitive elements: Players can compete against one another for top spots on leaderboards, adding a layer of social competition to the gaming experience.

These figures are achieved thanks to Soft2Bet’s gamified content and the player community utilising the game’s social features such as leaderboards, chat, emoji reactions and regular events.

CASE STUDY: CAMPOBET MEXICO’S SUCCESS

These features keep the gaming experience dynamic and rewarding, ensuring that players remain engaged and incentivised to return to the platform regularly.

Soft2Bet’s innovative approach to gamification is already delivering impressive results across its portfolio of brands. Campobet Mexico is a relatively new addition to Soft2Bet’s B2C portfolio that is managing to compete in a crowded marketplace by harnessing MEGA’s gamification tools to their full potential. Thanks to MEGA, it is achieving solid results thanks to its strong player retention and engagement metrics, once again demonstrating the power of Soft2Bet’s MEGA gamification solution.

ENGAGING AND PERSONALISED UX IS THE FUTURE OF iGAMING As the online gaming and casino industries continue to evolve, the need for innovative, engaging and personalised user experiences has never been more crucial. Soft2Bet’s Motivational Engineering Gaming Application (MEGA) is a game-changing platform that empowers businesses to understand player behavior, improve retention, and boost LTV through tailored gamification strategies.

STEADY FLOW OF CONTINUOUS RELEASES TO IMPROVE RESULTS

By leveraging cutting-edge AI, data-driven insights, and continuous updates, MEGA ensures operators remain competitive and deliver a rewarding experience for their players. As the results from brands like Campobet Mexico show, the future of online gaming lies in the ability to offer engaging, entertaining, and personalised experiences that keep players coming back for more.

One of the key benefits of Soft2Bet’s MEGA platform is its continuous improvement. The company is committed to releasing updates and new features and this constant flow of new content ensures players always have something fresh and exciting to look forward to, preventing stagnation and keeping engagement levels high.

54

AFFILIATE-ONLY COMMUNITY

NETWORK, SHARE INSIGHTS AND KNOWLEDGE SCAN HERE TO REQUEST ENTRY

AFFILIATELEADERS.COM

SECTION

SBC LEADERS ISSUE 35

PLAYER PROTECTION POWERED BY

ON THE FOLLOWING PAGES 58

Feature: Building a sustainable industry 56

PLAYER PROTECTION

COMMISSION TAKES AIM The Gambling Commission’s review of Evolution’s operating licence opens a can of worms but it can only be good for the licensed industry, writes SBC Leaders Editor STEVE HOARE

Commission has launched a review of Evolution Gaming’s licence due to its games being found on unlicensed operators targeting the UK.

“

T

hey tend to send an email – and it’s always at 5.30 on a Friday – threatening licence revocation because they’ve seen our games on illegal sites,” says the compliance chief at a UK-licensed supplier. “First I panic, then I look and invariably it’s an obvious ripoff. They’ve either copied the game or just copied the tile.”

Whatever you think of the Gambling Commission’s methods – and if nothing else, at least they make a mockery of those claiming the relationship is too cosy – you can’t fault it for trying.

The industry has been banging on about the threat of the black market almost every time a new regulation is passed. Well, this time the Commission is doing something that might – might! – actually have an impact.

“This could be seismic for the industry,” says another source.

“This is the first time that someone has gone after content rather than payments.”

In case you’ve not been following the story, the UK’s Gambling

Evolution acted quickly, releasing a statement to the markets: “Evolution is cooperating fully with the Commission and has taken requested immediate actions to remedy the situation.

Games on the identified websites not holding a Commission license have been made unavailable from the UK.” Which is not quite the same as “games from the offending websites have been removed”.

But we’ll put that thought to one side for now.

In the previous issue of SBC Leaders we focused on this issue as a possible solution to the black markets problem after Commission CEO Andrew Rhodes threatened action of this sort.

Among other things, an Evolution spokesperson told us: “We have no direct interaction to players, nor do we handle players’ money, and we do not control which markets that our operator customers operate in.

The decision which markets to target with their services lies with the operators.”

This was rubbished by another supplier: “Contracturally they have absolute power. We have penalty clauses and the right to terminate when they operate outside a clearly-defined set of markets.”

57

In its statement to the market, Evolution highlighted the fact that 3 per cent of its revenue comes from the UK. Over 60 per cent of its revenue comes from unregulated markets. Unwittingly or not, the statement highlighted the fact that unregulated markets are a lot more valuable to Evolution than the UK. It will take a concerted effort from other regulators to make this matter. It could shrug off a 3 per cent drop in revenue, investors would be more concerned with losing 35 per cent.

Evolution has been skating on thin ice since an anonymous report was sent to the New Jersey regulator alleging its games could be played on OFAC-sanctioned countries such as Syria and Iran.

That is a lot more serious in US regulators and investors (40 per cent of the ownership). While the New Jersey Department of Gaming Enforcement shrugged off the allegations once, other regulators will likely have another look if the Commission finds Evolution guilty.

Scan here for more from Player Protection Hub

PLAYER PROTECTION

SBC LEADERS ISSUE 35

HOW TO BUILD A SUSTAINABLE INDUSTRY

58

PLAYER PROTECTION

Few countries have been as proactive as Brazil around responsible gambling at the outset of the regulated market but there is also unprecedented pressure on regulators, operators and other stakeholders to up their game further Words by ELISA MARCANTE

R

esponsible gambling is often an afterthought when countries launch a new regulated iGaming market - an afterthought for politicians, regulators, operators, affiliates and other suppliers. However, the political climate around the launch of the regulated market in Brazil has prevented this. Brazil has also had the benefit of looking at the recent experiences of other regulated markets. So it starts from a position of strength.

New regulations have been introduced to accommodate digital platforms and curb illegal activities. The government’s focus on regulation aims to protect consumers, ensure fairness, and generate tax revenue. Promoting responsible gambling is becoming central to shaping its future as the market grows. Striking a balance between regulation, responsible gambling practices, and market growth is essential in the making of a sustainable gambling environment in Brazil.

However, for many industry participants these are only the basics. The role of affiliates is a prime example. While affiliates’ primary goal is to drive traffic to operators and generate commissions, they also play a vital role in promoting responsible gambling practices.

Affiliates raise awareness by incorporating responsible gambling messages into their marketing materials, such as banners, articles, and emails. By educating players about setting deposit limits, and time limits, and using self-exclusion tools, affiliates ensure players are aware of available resources to manage their gambling behaviour.

Rafael Marchetti Marcondes, Chief Legal Officer at operator Rei do Pitaco says: “Affiliate education is a crucial point in ensuring the transition to a regulated environment.”

59

PLAYER PROTECTION

SBC LEADERS ISSUE 35

practices, ensuring advertisements don’t target vulnerable individuals or promote unrealistic expectations about gambling rewards. By working with operators and regulators, affiliates contribute to a safer gambling environment.

Affiliates also direct players to safe gambling platforms. By partnering with operators that prioritise responsible gambling, affiliates ensure players engage with trustworthy platforms that comply with regulatory standards. This helps protect players and ensure their well-being.

“At Rei do Pitaco, we’ve adopted several strategies to promote responsible gambling”, says Marcondes.

“These include clear communication with affiliates about the new rules, developing educational materials in-house, and implementing audits to ensure compliance.”

At the SBC Summit Latinoamérica 2024, Leonardo Benites, CEO of iGaming marketing specialists Propane, shared the company’s vision of providing training and certifications for influencers, marketing agencies, and other industry members involved in promoting online betting and gaming. Propane aims to go beyond marketing by positioning itself as a thought leader in best practices and responsible advertising.

INFLUENCING THE INFLUENCERS Influencers play a significant role in shaping public opinion and can greatly impact responsible gambling. Positive influencers can raise awareness by promoting responsible gambling practices, such as setting limits and seeking help when necessary. They can also normalise discussions about gambling addiction and mental health, encouraging players to prioritise their well-being.

Some months later, Benites says that the company’s goal is to make these certifications mandatory under future legislation: “It would be highly beneficial to have our courses accredited by our regulator, simply because it aligns with our shared interests.”

However, influencers can also have a negative impact if they glamorise excessive gambling or endorse platforms without promoting them responsibly. This can lead to risky behaviors, especially among younger audiences. Influencers have a responsibility to promote ethical gambling practices that prioritise the safety of their followers.

Benites explains: “We’ve conducted in-depth research to develop our training programs, using best practices from several countries, in addition to applying Brazilian laws. If the regulator is just starting now, there’s still a significant learning curve before reaching the final product — and it’s accessible.

Regulator support for this initiative means supporting a market guided by responsible advertising and aligned with the regulations’ core mission of protecting players.”

“In the unregulated market, both influencers and affiliates played a major role in customer acquisition for the industry in Brazil. They were key channels for outreach and engagement, but unfortunately, not all acted ethically or responsibly, leading to widespread negative public opinion”, says Benites.

“This is why we are pursuing the certification, which has evolved in recent days, and we are in productive discussions to make our training the foundational resource for responsible advertising,” Benites adds.

According to the CEO of Propane, in the now-regulated market, it is crucial that “influencers and affiliates handle responsibility by spreading accurate information and debunking the major myths built during the preregulation period”.

Moreover, affiliates offer additional resources, such as helplines and selfassessment tools, for players facing gambling issues. Affiliates are also responsible for ethical marketing

60

PLAYER PROTECTION

Leonardo Benites CEO, Propane

“

Filipe Rodrigues Lawyer & Administrative Director, Jogo Positivo

Rafael Marcondes CLO, Rei do Pitaco

All operators should have a centralised database to prevent those excluded from one platform from accessing others

“

operators adopt tools like deposit limits, self-exclusion options, and clear messaging about gambling risks. This is an ideal time to educate players on how to gamble responsibly and highlight that while gambling is a form of entertainment, it carries risks that need to be managed.

He adds: “It is even more important that customer acquisition through these or any channels is done with social responsibility, focusing on what this industry truly is – entertainment.”

As Marcondes notes: “Brazil already has a solid regulatory framework for responsible gambling as it moves toward a regulated market. The country has made significant strides by incorporating tools like deposit limits and enforcing penalties for operators who fail to promote responsible gaming.

As the market matures, we expect rules to evolve, including mandatory public education programs and AI-powered tools to identify risky behaviors and offer personalised support.”

NO NATIONAL SELF-EXCLUSION SYSTEM

“Overall, the protection system in Brazil is solid and aligns with international standards.

However, it needs improvement. The most critical issue is the unification of data for individuals with gambling addiction and compulsive behaviors. All operators should have a centralized database to prevent those excluded from one platform from accessing others,” says Filipe Rodrigues, lawyer and administrative director of Jogo Positivo, a Brazilian organisation that aims to promote responsible gambling.

The ongoing regulation of online betting presents a critical opportunity to raise awareness about responsible gambling.

As Brazil moves toward a regulated market, it is essential to seize this moment to emphasise safe gambling practices.

A well-regulated market ensures that

“Another key issue is education and research.

In Brazil, these areas are still underdeveloped and in their early stages. In the United States, leading operators have allocated $20m for responsible gambling research. This demonstrates the seriousness with which the issue is treated there,” Rodrigues adds.

61

PLAYER PROTECTION

SBC LEADERS ISSUE 35

Andréa Ueda, Legal and Compliance Director at Brazilian operator Alfa Entretenimento, stated during SBC Digital Brasil that responsible gambling advertising campaigns should be seen as educational campaigns.

She noted that the Brazilian market still faces challenges, such as misinformation in the media and among the public.

Marcondes emphasises: “Communication with players must be clear and grounded in ethical values and real benefits. To achieve this, Rei do Pitaco has adopted a strategy of creating campaigns that explain in simple terms how operating on a licensed platform protects players — including guaranteed prize payouts, customer support, and personal data protection.”

He adds: “The company also plans to use real stories from players who have benefited from licensed platforms in its communication, highlighting safety and integrity as key advantages over illegal platforms based abroad, which are beyond the reach of Brazilian authorities.”

BUILDING A RESPONSIBLE GAMBLING CULTURE Integrating responsible gambling initiatives into the regulatory framework can create an environment where players are more informed and better protected. Clear communication about the risks of gambling and the tools available to mitigate those risks can help foster a safer gambling culture. By highlighting responsible gambling during the regulation process, Brazil has the opportunity to build an ethical, sustainable industry that prioritizes player well-being.

Thiago Balieiro, VP of People at Sorte Online, believes national culture plays a role in addressing gambling addiction. He notes that Brazil, a country driven by passion, and the way Brazilians engage with social media, may complicate efforts to combat pathological gambling. This cultural dynamic suggests that strategies to promote responsible gambling in Brazil should consider local behaviors and attitudes.

As the market matures, a collaborative approach between regulators, operators, and affiliates will be key to fostering a responsible gambling ecosystem in Brazil. By focusing on education, awareness, and clear regulations, the industry can ensure a healthy, sustainable environment for players, promoting both the growth of the market and the protection of those who engage in it.

62

The only daily news podcast in the industry.

Listen every day on Spotify, Apple Podcasts, Youtube, or wherever you get your podcasts.

SBC LEADERS ISSUE 35

MARKETING POWERED BY

ON THE FOLLOWING PAGES 66 70

Feature: Sponsoring women’s sports Feature: SBC Americas preview

64

MARKETING

MOVE QUICKLY, BUT MOVE SMARTLY The opening months of a new market are crucial for long-term success, writes Affiliate Leaders Editor CHARLIE HORNER. As first-movers seek to make that advantage count, affiliates need to be at the top of their game

notes that tailoring content is essential to success

T

he opening weeks of 2025 have revealed a highlycompetitive market in Brazil as operators adjust to the new regulated framework. And as operators battle to acquire customers, the role of affiliates cannot be underestimated.

Brazil is just as hotly-anticipated among the affiliate community as it is for operators, as the marketing specialists smell the opportunity of gaining commission from the highlyengaged and sports-frenzied Brazilian audiences.

But there are different ways of attracting the attention of those users, and selecting the right strategy could be the difference between success and failure in a market as competitive as this.

Flashscore, a live scores app, is one such company looking to reap the rewards of the market with its live scores and in-depth statistics.

CEO Pavel Krbec is all too aware of the Brazilian opportunities but

Krbec told Affiliate Leaders: “Localisation is so, so important.

We cannot just uniformly serve one language, so we ensure to use the Brazilian variant of the Portuguese language. Another example of our localisation is that we can cater to Brazilian audiences very well for the Champions League, as it takes place in the afternoon there.

People can come home from work or school and get on the FlashScore app to see all the breaking news and statistics from all the games.”

Meanwhile, Chris Russell, CEO of OneTwenty Group, which launched its BettingOdds.com platform in Brazil, explains that having a close connection with the audience through content and influencers is his way of winning.

“What we want to do in Brazil is to recreate some of the fan engagement experiences that we have in the UK,” says Russell. “And that’s how we feel is best to enter such a big market where, at our size, we can’t make enough noise with just blunt force marketing.”

“Capturing the attention of the Brazilian market, we believe, is a very social experience,” he adds. “So at the forefront of our minds will be to find partnerships between our product and various creators or presenters, who are very strong on individual social platforms in that market to help promote our product.”

65

However, others have warned that, while influencers can be an effective tool in reaching players, there are precautions that must be taken.

As Marina Lima, Project Manager at Clever Advertising Group, alerts: “We are very careful to choose influencers whose values align with the operators we work with and we are very careful with training and briefing influencers so we provide training sessions in extensive detail with influencers, making them feel like a true extension of our team.”

Success in sports betting and iGaming is not linear and there are several paths to victory, but having a clearly defined strategy to enter new markets is essential to giving a business the best chance. Those who have a clear plan, stick within the regulated framework and push the boundaries to innovate have an untold world of riches awaiting if they can tap into Brazil’s fervent sports fandom.

Scan here for more from Affiliate Leaders

MARKETING

SBC LEADERS ISSUE 35

PIONEERS WANTED

Photo credit: João Brandino

66

MARKETING

Brazilian operators are missing a trick when it comes to sponsoring women’s sports. All that could be about to change with the 2027 World Cup on the horizon, says sponsorship expert FÁBIO WOLFF

Words by ANA MARIA MENEZES

O

n September 22, 2024, during the Brazilian Championship final, Neo Química Arena was the stage for a historic moment: 44,529 fans filled the stadium to watch the match between Corinthians and São Paulo, which ended with an impressive 2-0 victory for Corinthians. The event set the continental record for the largest audience in women’s club football.

Not coincidentally, 2024 was also the year in which women’s teams received record investment.

Sixteen teams secured 55 sponsors, with Palmeiras leading the investment rankings, sponsored by Esportes da Sorte. Ferroviária followed in second place, backed by Galera.bet.

In this scenario of rapid growth, a question arises: how can operators establish themselves in women’s sports and become market pioneers and references?

In an interview with SBC Leaders Magazine, Fábio Wolff, director of the sponsorship agency Wolff Sports & Marketing and one of the creators of the Brasil Ladies Cup — a tournament that organises friendlies during the off-season of Brazilian football — speaks about the untapped sponsorship market.

He highlights how betting companies not only can but must look toward this sector and seize the opportunity to establish themselves as pioneers.

“In Brazilian women’s sports, it is very easy to become a pioneer because big teams like Corinthians still have available space for shirt sponsorships. So brands still have space to grow,” Wolff comments during the conversation. He was relaxed, smiling through the questions, as if more than 20 years of experience were easier to gather in a conversation than having a casual conversation about the weather.

67

If brand awareness wasn’t important, Coca-Cola wouldn’t need advertising

MARKETING

SBC LEADERS ISSUE 35

Fábio, who has been the CEO of Wolff Sports & Marketing for 18 years, says he noticed a significant market difference after completing his master’s degree in football studies in England and returning to work in Brazil’s domestic market.

“Brazil is still not a consolidated industry in [women’s] sports; we still depend heavily on government incentive laws, which creates uncertainty for brands. But this is changing. We are growing,” he says.

WORLD CUP MOMENT OF TRUTH Brand positioning is undoubtedly one of the most important elements for this growth. The betting industry, saturated and highly competitive, demands multifaceted marketing strategies focused on branding and consumer connection. This differentiation can be decisive in a user’s choice between one brand and another.

“

In Brazilian women’s sports, it is very easy to become a pioneer because big teams like Corinthians still have available space for shirt sponsorships

“If brand awareness wasn’t important, Coca-Cola wouldn’t need advertising,” Wolff jokes. He recalled how LG, upon entering Brazil with no recognition, gained prominence by sponsoring São Paulo, embedding its logo in the memory of fans.

Looking ahead to the 2027 Women’s World Cup, Wolff stresses the importance of investing in brand awareness.

The event will take place in Brazil from June 24 to July 25, with the final scheduled for Maracanã Stadium in Rio de Janeiro. This will be the first time a South American country hosts the competition.

For the first time, FIFA offered the bidding for the tournament’s media rights separately from the men’s competition. This reflects the sport’s growing popularity and the increasing

68

broadcast interest from networks worldwide.

At the 2023 World Cup, more than 2 billion people watched the matches globally, and 1.97 million fans attended games in stadiums—an all-time record.

During the FIFA Fan Festival, 770,000 people participated in brand activations, with free events featuring big screens broadcasting matches, directly engaging audiences.

For Wolff, however, there is still a lack of consistency in investments. Many companies conduct one-off initiatives but do not sustain long-term projects. With the Brazilian market now regulated and subject to advertising restrictions, sponsorship and audience connection through women’s sports can be a game-changer for players aiming to remain relevant and maintain a positive image in Brazil’s collective imagination.

ABLAZE IN GREEN AND YELLOW And what brand wouldn’t want to have fans on its side?

At the Paris Olympics, the deafening roar from the stands during every final featuring Brazilian athletes unmistakably belonged to those in green and yellow shirts. In beach volleyball, Olympic champions Duda and Ana Patrícia defeated the Australian players Melissa Humana-Paredes and Brandie Wilkerson by two sets to one. Even through television broadcasts, viewers could hear the shouts of encouragement, the adrenaline-fueled laughter of fans, and the songs that synchronised the rhythmic stomping of feet on the metal bleachers. On television screens, the shirts bearing sponsor logos were visible—for the world to see.

There is no more fertile ground for investment than

MARKETING

Photo credit: João Brandino

women’s sports, as there is room to occupy, and because Brazilian fans view sports as more than a competition—it is national pride.

Operators ignoring the chance to gain Brazilians’ trust through sports are missing a golden opportunity.

From football to volleyball and other sports, the country offers a passionate and enthusiastic fan base eager to follow high-level competitions. By channeling resources into this sector, operators not only strengthen their market presence but also secure lasting recognition in the minds of Brazilians while reinforcing their brand.

Aline Heineck, regional manager at Esportes da Sorte, the official

sponsor of Palmeiras’ women’s team until 2024, emphasises: “The 2027 tournament will be crucial for companies to step out of theory and demonstrate, through practical actions, the importance of female representation in sports. Whether through club sponsorships, athletes, or brand exposure, market support will be fundamental.”

At the SBC Summit Latinoamérica, held in October 2024 at Fort Lauderdale casinos in Miami, Lina Silva, CEO of WANDR and a specialist in product strategies, firmly stated that pursuing sponsorships in women’s sports is not just about including women in categories as a favour. Instead, it’s about building champions, transforming an entire market

69

through investment, and reaping the rewards later through podium finishes and brand expansion.

The unparalleled performance of Brazil’s Women’s National Team at the Paris Olympics is testament to this. The incredible 4-2 victory over the world champions in the semifinal demonstrated that the “Canarinhas” are not just there to play—they are there to win. Isn’t that exactly what should attract operators: who has the will to win?

Those who arrive first in this market can reap long-lasting rewards, associating their brand with winners—teams filled with grit and determination that refuse to settle for participation and instead aim for victory.

MARKETING

SBC LEADERS ISSUE 35

PREVIEW: THE VERY

FIRST

SBC SUMMIT AMERICAS

70

MARKETING

SBC made a game-changing move last May with the launch of SBC Summit Americas; a unified event that brings together the best of SBC Summit North America and SBC Summit Latinoamérica into a single, dynamic platform for the entire Americas region

Words by ELLIS DAVIS

I

n 2024, the final editions of these two iconic events brought together 9,000 professionals — an undeniable success. However, the rationale for combining them into a single event was compelling and clear.

Both regions contend with similar challenges and opportunities, such as adapting to diverse regulatory changes and capitalising on rapidly growing markets. On the more practical side, the surging demand for these events pushed current venue capacities to their limits.

Looking ahead to 2025, SBC Summit Americas will build on the strengths of its predecessor events by retaining the key features that made them successful, while also enhancing collaboration between regions and making business trips more efficient for industry professionals.

SBC SUMMIT AMERICA IN NUMBERS

10,000

4,000

Delegates

1,000

Operators

250

Speakers

400

Affiliates

8

Conference Tracks

71

Exhibitors & Sponsors

2

New Summits

MARKETING

SBC LEADERS ISSUE 35

regional marketing strategies, safer gambling initiatives, the latest iGaming and sports betting trends, leadership challenges and market entry strategies.

The inaugural SBC Summit Americas will take place on May 13-15 at the Broward County Convention Center in Fort Lauderdale and bring together over 10,000 industry professionals from across the Americas for three days of networking, discovery and collaboration.

SBC will also introduce two new side summits as part of its expanded offering: the Affiliate Leaders Summit and the Payment Expert Summit.

The event will bring together key industry figures, showcase new technologies and services, and provide a platform for both regions to share insights into their approaches—offering opportunities to learn from each other’s successes and missteps.

The Affiliate Leaders Summit will bring together affiliates and operators to discuss strategies for market entry, traffic acquisition and effective collaboration.

The educational conference programme will be a central feature, with six dedicated stages and a pre-day conference focusing on player protection.

The Payment Expert Summit will focus on the latest trends, challenges, and innovations within the payments landscape, offering a platform for discussion on seamless payment solutions, digital currencies and fraud prevention.

Over 250 experts will lead discussions on critical topics affecting both regions, including

72

MARKETING

THE EDUCATIONAL OPPORTUNITIES The Player Protection Symposium will kick off proceedings with a pre-show event focused on advancing safer gambling practices and bringing together 100 industry professionals dedicated to promoting responsible gambling.

The symposium will feature a variety of discussions on key safer gambling topics, including strategies for implementing financial risk checks without driving players away; the latest technological innovations enhancing player protection; and effective methods for delivering impactful safer gambling education in emerging Latin American markets.

Attendees will also explore how safer gambling initiatives can strengthen player loyalty and support commercial growth.

SBC SUMMIT AMERICAS CONFERENCE TRACKS PLAYER PROTECTION SYMPOSIUM LEADERSHIP NORTH AMERICA SPORTS NORTH AMERICA IGAMING TRIBAL SYMPOSIUM PAYMENT EXPERT SUMMIT LATAM AFFILIATE LEADERS SUMMIT

73

MARKETING

SBC LEADERS ISSUE 35

The Leadership Track will explore critical strategic shifts and opportunities across the Americas’ gaming markets.

limiting bettors is an effective solution and how sweepstakes betting is creating a new pathway for US casinos by combining free entries, prize opportunities and enhanced user engagement.

Panellists will address the evolving US sports betting and iCasino landscape in “Player Value vs Market Share: The Real Conundrum in 2025” as the industry faces economic shifts and political changes. The discussion will focus on whether market dominance by the Big Four is driven by valuable players or casual bettors, highlighting the strategic challenges ahead.

Other discussions will focus on omnichannel strategies, exploring how technology can seamlessly connect digital and physical gaming experiences to boost customer interaction and examine how CRM strategies leveraging gamification and AI are driving player loyalty. The speakers will also address the challenges facing the lottery sector in converting its large player base into profitability.

In “Beyond Brazil: Balancing Growth Across LATAM’s Other Markets,” experts will evaluate how operators can invest in smaller Latin American markets while still capitalising on Brazil’s success.

Delegates interested in the vital role and contributions of tribal nations should attend the Tribal Symposium.

Led by a panel of tribal experts, the discussions will focus on the gaming industry’s impact on Indigenous communities, strategies for fostering strong tribal partnerships, and opportunities for collaboration to advance legalisation efforts in California. The symposium will also explore how tribal gaming can benefit from the anticipated increase in tourism linked to the 2026 FIFA World Cup and the 2028 LA Olympics.

Lastly, “Bridging the Gap - Adapting North American Strategies for Success in Brazil” will discuss how U.S.-based operators can tailor their strategies to meet Brazil’s unique cultural, sports-focused preferences and regional challenges.

Attendees with an interest in the North American Sports Betting landscape can also look forward to a diverse range of sessions. Relevant panels will tackle key trends, including the integration of sports betting into broadcasting to boost engagement and revenue while addressing ethical challenges. Other sessions will explore the rise of DFS, advanced player data analytics, and the role of AI in optimising user experiences and odds.

The LATAM Track’s key sessions will feature an in-depth focus on Brazil, examining the surge in licensing requests and the lessons learned from real-world experiences. Additionally, the track will analyse the potential impact of Brazil’s delayed vote on a bill to legalise land-based casinos and explore the increasing importance of player protection initiatives.

Discussions will also highlight opportunities in women’s sports, esports’ appeal to both traditional bettors and younger audiences, and how North America is preparing for the FIFA World Cup 2026. Additionally, panels will address the ethical considerations of sports betting, NCAA’s efforts to protect college athletes, and strategies for maintaining integrity and trust.

Other panels will cover the Andean region, highlighting the rise of markets like Colombia, Peru, Chile, and Ecuador, and the lessons these markets offer.

Discussions will also examine the role of international operators securing licenses in Costa Rica and Curaçao, the flexibility these licensing markets provide, and the risks they present.

Additional sessions will explore

The North America iGaming Track will address critical topics such as whether

74

MARKETING

generation techniques like unique content, videos and streaming.

strategic partnerships between gambling companies and sports organisations and strategies for running effective affiliate marketing campaigns across LATAM.

Panels will address challenges in influencerdriven betting promotions, balancing ethical marketing with regulatory compliance, and optimising UX, marketing, and retention for a competitive edge in 2025. Attendees will also get to explore tips for entering LATAM’s growing affiliate market, harnessing localisation to engage the Hispanic population, and building strong brand identities across diverse regions.

During the Payment Expert Summit Track, industry leaders such as Tom Waterhouse (Chief Investment Officer, Waterhouse VC), Trent Striplin (VP of Payments & Fraud, Caesars), and David Rebuck (Former Director, NJDGE), will share their insights on key acquisitions and the implications of shifting state regulations, such as tax restructures in Ohio and Illinois. Panels will tackle strategies for balancing fraud prevention with seamless transactions, optimising payment systems for growth and cost reduction, and the future of cryptocurrency in gambling.

Additionally, expert insights will highlight the power of big data in understanding customer behaviour and maximising acquisition and retention.

Furthermore, attendees can gain insights into Colorado’s thriving tech ecosystem, the potential of federal oversight through the SAFE Bet Act, and the fairness of tiered tax systems.

Under the banner of “Connecting Worlds Through Gaming,” SBC Summit Americas goes beyond the slogan to create a unified platform for the gaming industry across the Americas.

Finally, affiliate-focused sessions of the Affiliate Leaders Summit Track will delve into strategies to dominate SERPs using AI, PBNs, and Parasite SEO, alongside creative traffic-

With a strong emphasis on education, the event seeks to break down barriers— geographical or otherwise—by fostering collaboration and sharing insights.

75

SECTION

SBC LEADERS ISSUE 35

PAYMENTS POWERED BY

ON THE FOLLOWING PAGES 78

Feature: How to harness the power of PIX 76

PAYMENTS

BROADENING THE PALETTE Payment Expert Editor TED ORME-CLAYE ponders whether the regulator could open the market up to other forms of payment

A

fter years of anticipation, Brazil’s betting market is finally here. While it’s still too early to judge the market’s success nor its global impact, the uniqueness of the sector in comparison with some of the more established betting markets is notable.

This is not least from a payments perspective, regarding both regulatory conditions and consumer preferences. Firstly, Brazil is unique in that its regulatory landscape has placed the onus on one payment method and one only – this, of course, being PIX. In any other market, a regulatory requirement for operators to accept only one form of payment method would be detrimental to the market, even disastrous. In Brazil, however, PIX’s rapid growth and mass use could be very positive for its emerging gaming market.

PIX has emerged as one of the most successful financial success stories in Brazil, Latin America and the world. Having only launched in 2020, it

exploded in popularity to build up a user-base of over 150 million businesses and consumers by the end of 2023.

some people from the market.

Crypto in particular is popular in Brazil, and throughout much of Latin America for that matter.

This should, in theory at least, make the KYC journey a lot easier for most operators.

With all customers depositing into their accounts via the same route, keeping tabs on spending trends, keeping track of affordability, and looking to detect signs of money laundering could be a much simpler task than in other markets.

The sheer popularity of PIX and its accessibility will offset this though. While the exclusion of cryptocurrency from the regulated market is not great for operators which specialise in digital currency, it does also make some sense.

The other factor to consider is that despite Brazil being a colossal market – the fact there are over 100 million economically active people across the whole country demonstrates its economic potential – there will be no regional payments considerations for operators to factor in.

“Payment trends can differ across the country, but we have definitely seen a slimming down in the amount of payment methods used since the introduction of PIX in November 2020,” says Sean Telford, Head of Operations at KTO. “This is not exclusive to online gambling, with PIX being used for everything from making donations to buying petrol and everything in between.”

On the other hand, the exclusion of payment methods like cash, debit and credit cards, and cryptocurrency will exclude

77

Brazil’s market is still in its infancy, and with even the most well-established of markets like the UK mulling over crypto betting it seems logical for Brazilian regulators to err on the side of caution when it comes to crypto – especially given the concerns around money laundering which constantly plague cryptocurrency.

It is clear that moving forward, the payments consideration operators need to keep frontand-centre in Brazil is PIX. If you want customers to place bets with you in Brazil, you will need to be able to integrate PIX there is no inbetween.

Scan here for more from Payment Expert

PAYMENTS

SBC LEADERS ISSUE 35

SOLVING THE PIX DILEMMA 78

PAYMENTS

As Brazil launches regulated gambling, a crucial aspect for companies will be which payment method will become the backbone of its payment processing. In Brazil, there appears to be only one answer - PIX

Words by CALLUM WILLIAMS

P

ix, the Brazilian central bankbacked payment service, has undisputedly taken the reins as Brazil’s predominant payment method amongst citizens since launching in 2020.

During a Payment Expert Summit panel, leaders within the gaming and payments industries discussed why operators should undoubtedly be integrating PIX, what regulations to consider when entering Brazil, and why the sheer size of the country calls for more localised approaches to preferred payment methods.

According to Roberto Regianini, CCO of PayBrokers, PIX represented over 90 per cent of all iG aming transactions over the past year in Brazil. For PayBrokers, it processed almost 100m PIX transactions in August alone, equating to 2 per cent of the total amount of PIX transactions in the entire country.

Regianini’s findings highlight PIX’s vital importance to customers, and also the added value for an incoming operator, which will no doubt look to start on a strong note as it enters the Brazilian gaming market.

WELCOME TO THE JUNGLE Despite the clear benefit of a dominant, easily-integrated and popular payment method like PIX to kickstart an operator’s proceedings,

every licensed operator in the country will implement it, which presents a competitive challenge for operators.

Stake Brazil Country Manager Thomas Carvalhaes declared “welcome to the jungle” to any incoming Brazilian operators as he believes that there will be an early power struggle between companies around who can best leverage PIX to their advantage.

As the central bank payment method can be integrated into all operator payment processes and acts the same for all, Carvalhaes believes that operators will need to get creative with how they will offer PIX to their customers, especially as the Brazilian gambling regulations outlaw incentives such as free bets, bonuses, rewards, etc.

He said: “For me as an operator, I need to think about speeding up the client’s leverage of PIX. Everybody else out there is offering instant PIX because, in its nature, it is instant, 100 per cent free and charged by the government. However, I think the main challenge is to understand how you market this opportunity, and what type of leverage do you have over your competitors.

“Within the regulations of Brazil, bonuses will not be allowed. So what kind of incentives are operators going to throw out there? That is the main challenge I believe operators are asking.”

I really hope the operators, who are spending a lot of money for licences and taxes, take care of their advertising and marketing too

79

“

PAYMENTS

SBC LEADERS ISSUE 35

THE CENTRAL MARKETING DILEMMA

to new regulations that cater to a new customer base.

Marketing of PIX and marketing of a brand are two sides of the same issue that betting and gaming companies will encounter when entering the Brazilian market.

For Brazil, certain rules and compliance standards, such as the ban on rewardsbased marketing initiatives, will be almost entirely new to some operators setting up shop in Brazil.

While the extraordinary popularity of football will have marketing executives salivating – soccer legends such as Ronaldo and Ronaldinho have sponsorship deals with Betfair and Booming Games, respectively – operators will need to balance that with strict compliance controls pertaining to responsible gaming. This is a hot political topic in the Portuguesespeaking country.

Therefore, a key challenge in its own right is understanding the full spectrum of the regulatory and compliance guidelines that have been set out by the government.

For payments companies in particular, regulation is nothing new. However, for payment regulations under the new gambling bill in Brazil, there are certain parameters such as a ban on credit card and crypto deposits that may completely alter an operator’s initial rollout of its services upon market launch.

Ari Celia, Director of payment firm Pay4Fun, acknowledges the challenge and argues that Brazil requires a completely different strategy to any mature market that it is active in.

This was broken down by Vitoria Lopes Goellner, the Legal Counsel for Bet77, who noted that the segregation of funds between operators and players has been of the utmost significance to policymakers upon drafting and finalising regulations.

He shared: “The big issue is to adapt to everything that is set, in terms of system, customer service, people and training. We are spending a lot of our efforts in training to help them prepare for this launch.

Goellner stated that the payment method ordinance “ensures that all payments can be made through providing operators without affecting the health of financial companies”.

“In terms of PIX, we don’t just have PIX itself, but also a PIX gateway and a digital wallet. So we are ready. As an authorised payment institution in Brazil, we have been working and complying with the financial regulations since the beginning.

Overcoming these regulatory hurdles was cited as one of the major challenges for Celia when rounding out his list of challenges for incoming Brazilian operators.

“For the operators, there will be challenges in terms of marketing and advertising for specific customers.

We have seen in the past, many issues related to gambling advertising, especially the digital and social influencers. I really hope the operators, who are spending a lot of money for licences and taxes, take care of their advertising and marketing too.”

He concluded: “The biggest challenge for everybody right now is to adapt to the regulation. There are many things that have been introduced by the government, some of them in my opinion are very good as they address the issue to the point. I trust they will update some of the regulations that I believe need to be worked on before the market goes live.

OVERCOMING REGULATORY HURDLES

“The regulation in total is very beneficial.

It has been a dream for this industry as it has been in the works since 2018 having been waiting for this moment, and now, it is finally here.”

Entering any newly regulated market, whether that be for gambling or payment companies, can be difficult in the early stages as they need to adapt

80

PAYMENTS

“

I know a few operators that have arrived in Brazil that decided to not target the whole country, instead targeted one specific state of Brazil

because in Brazil, we customise PIX, so you have to develop a specific front end deposit for different customers in different regions.”

There are plenty of challenges and obstacles for both gambling and payments operators to consider. An added wrinkle will be the localisation needed to serve customers from Rio de Janeiro to Sao Paulo, and everywhere else in one of the largest countries in the world.

Brazil represents a major opportunity for companies in both industries to gain a foothold in a culturally-enriched football and sports country, while benefitting from a payment service like PIX that can be easily integrated to help process payments from the immediate rush from customers.

With a population of over 210 million people, it’s no surprise that operators are looking at the Brazilian market as a potential goldmine. But Celia stresses the importance of focusing payment and marketing plans for each specific region.

But just like with all new things, operators should not rush into any market without doing proper due diligence and compliance checks to ensure a seamless launch. Otherwise, they may be in danger of getting lost in the jungle and falling significantly behind the leaders at the top of the food chain.

“I know a few operators that have arrived in Brazil that decided to not target the whole country, instead targeted one specific state of Brazil.

“This stresses how important it is for the payment service providers

81

COMMENT

SBC LEADERS ISSUE 35

Final word with

Andrew McCarron

W

At SBC, we’ve seen the opportunity to support influencers and brands during this transition, ensuring they can still craft powerful, creative messages while staying 100% compliant.

hen markets legalise, they all bring their own idiosyncrasies and trends to the industry. Some then spread to other markets as operators and suppliers find that appeal translates to other countries and demographics, and they now have first hand experience in making it work.

That’s why, at our upcoming SBC Summit Rio, we’ve partnered with Brazil-based Propane to host a dedicated workshop for influencers looking to responsibly and effectively promote gambling brands, as well as for operators seeking to leverage influencer platforms to amplify their visibility.

What is special about the Brazil market, apart from the millions of sport-crazy citizens, is the importance of influencers. The usage of influencers will be key for any successfully marketed gaming operator — especially once the remainder of the football shirts have been snapped up by gambling brands.

The workshop will unfold across three engaging segments. Attendees will explore the postregulation influencer landscape, dive into the fundamentals of responsible advertising, and conclude with a masterclass on crafting success stories for casino influencers.

Influencers are big in Brazil and an acceptable way of marketing products to their millions of followers across numerous social networks. A favourite Instagram star sharing their own experience of playing a game adds way more credibility to the product than any kind of traditional advertisement is capable of doing.

Of course this has the added bonus for operators, who will be able to connect with hundreds of influencers at the academy and throughout the event! What better way to find the right kind of personality that fits with your brand?

However, with the recent changes in Brazil’s regulations redefining what’s allowed and what’s not, influencers and operators are facing a challenge: learning how to promote brands responsibly. For many, this shift might feel unfamiliar and even a little daunting, but it’s also an opportunity to grow and adapt.

Enjoy, Andrew McCarron Managing Director SBC Media

82

THE GREATEST SHOW IN GAMING 30,000

DELEGATES

500+

SPEAKERS

16–18 SEPT 2025 FIL LISBON

700

EXHIBITORS

For more information please visit sbcevents.com or scan the QR code