“With a population of 200 million, the potential for legal sports betting
in Brazil is unlimited.”
Following a press conference held yesterday in Sao Paulo and today GovRisk Integrity Summit in Brasilia, supported by the company, Genius Sports is stepping up its consolidation path in Brazil. Group communications director Christopher Dougan comments in this exclusive interview about the potential of the country legal sports betting market, reviews the recently announced draft regulation and predicts a prosperous future for the industry: “It could be worth $2 billion over the next five years.”
Interview with Christopher Dougan
Christopher Dougan – Legal sports betting in Brazil quickly became an imminent reality last December when President Temer signed MP 846. Since then, we at Genius Sports Group have been working hard to lay the groundwork for the exciting opportunities that a marketplace regulation will bring. The Ministry of Economy has already held a detailed public consultation and published its initial draft sports betting regulation. The results of their research tell us that there is a historic opportunity to develop a legal framework that protects the integrity of Brazilian sport.
Realizing the benefits of a legalized gambling market, such as tax revenue, job creation and greater consumer protection, will only be possible if the Brazilian sport is fair, transparent and unpredictable. To achieve this, it is crucial that stakeholders of betting, sports, government and law enforcement come together at this vital stage of regulation formulation.
These parties have a unique chance to share their industry experiences and best practices, helping to create a sports betting ecosystem that ensures that the regulated Brazilian industry grows sustainably while addressing the dangers of the illegal market and protecting the future of your sports.
That is why, together with our partner GovRisk, we are holding an event that brings together members of the Ministry of Economy, Higher Labor Court, Ministry of Justice, Federal Police, Brazilian Sports Leagues and integrity specialists.
Creating a transparent environment is absolutely critical to preventing and combating match-fixing, betting-related corruption and other harmful activities. Legalizing sports betting will immediately provide greater visibility on a certain degree of the Brazilian market, but there is a huge amount of what the government can do to put sports integrity at the center of regulation.
From our experiences in regulated markets around the world, and especially in the UK, we understand that involvement with national sports leagues and federations is critical to safeguarding the integrity of the sport and maintaining consumer confidence in its competitions. Without this, a regulated betting market will simply fail.
The cornerstones of this approach are the implementation of robust information sharing procedures and education programs for those involved in sports at all levels, and the use of technology to monitor suspicious gambling activities.
Meanwhile, understanding the power of official sports betting data will also have great value in the newly legalized market. By creating a live data feed authorized for distribution in the legal gambling industry, Brazilian sports will enjoy a fair financial return for global betting on their matches, while licensed operators gain a competitive advantage over foreign counterparts as their products at stake are faster and more reliable.
Official data also gives Brazilian leagues and sports federations valuable transparency and control over their match betting, providing a single source of truth and clear visibility into where their assets are being used.
With a population of over 200 million and a famous sports love, the potential of legal sports betting in Brazil is limitless. That’s a potential, a recent analysis by trusted research firm H2 Gambling Capital indicates that the industry could be worth over $ 2 billion over the next five years.
No doubt this will attract many of the biggest names in international sports betting. History shows that the best move in this regard is to ensure that these operators have a local presence. In doing so, local jobs are created, the money stays in the economy, and long-term local commitment is encouraged. We saw this model adopted in the US after PASPA, with European giants partnering with local casinos in all 13 states currently in operation.
Within the highly intricate and complex regulations drawn up by the Ministry of Economy, there are elements that we believe are a good sign for the long-term sustainability and growth of legal sports betting.
Encouraging fair competition by choosing not to limit the number of licensees will encourage innovation and high-quality customer service, keeping players out of the dangerous illegal market. The decision to attach advance payments to nine-year licenses will also contribute to this by ensuring that operators are committed to the long-term market.
And while turnover-based tax systems have had problems in the past, the fact that the Ministry of Economy has cited the 1% turnover tax as equivalent to 6% of GGR indicates that they have carefully evaluated both models and paid close attention to others. markets around the world, learning from stunted growth in other markets with turnover rates such as Portugal and France.
The last nine months have represented a period of great expansion across the Group’s divisions and Latin America has been central to this.
We currently work with 35 sports organizations across the region, offering a range of services, including health monitoring and education, and a complete live data collection, management, and marketing solution.
Our partnership of integrity and official betting data signed with the Argentina Superliga last month was a special highlight and there is much more to come.
Adding more Latin American sports to our betting data rights portfolio makes Betgenius an increasingly important partner for licensed sportsbooks in the region, leading to a host of new businesses in recent months, including one with the brand. number one bookmaker from Mexico, Caliente MX.
News source: Games Magazine Brasil