Bill proposes less tax on OSB in Brazil
Brazilian OSB, BettingJobs interview, Hacksaw and Push deals, Colombian lottery, Chile legals +Más
Buen día. On this week’s agenda:
Brazilian Senate bill suggests a reduction in sports-betting taxes to 12%.
Ahead of SBC Latinoamérica, I+M spoke to Euan Green from BettingJobs.
Hacksaw Gaming and Push Gaming enter the Colombian market.
Coljuegos launches MiLoto, which looks to attract younger players.
Chile Supreme Court upholds ruling against ANFP.
The Jobsboard includes roles in Mexico and Argentina.
Brazilian OSB
Senator advocates reducing sports-betting tax to 12%.
Two tiers: Senator Ángelo Coronel, the rapporteur in the Senate Economic Affairs Committee (CAE) for the bill that regulates sports betting and legalizes online gambling in Brazil, has put forward proposals to establish different tax rates for two segments: reducing the tax from 18% to 12% on revenues for sports betting and maintaining the 18% rate for general online gambling.
The initiative will be discussed with the economic team and the president of the Chamber of Deputies, Arthur Lira (PP-AL), next week.
Coronel explained the final legislation is likely to be voted on in the full Senate in early November.
Furthermore, he proposed that a portion of the money collected from sports betting be transferred to municipalities.
Fair’s fair: Coronel noted that approximately 60% of the country’s gaming industry companies are involved in online gambling, while the remaining 40% are related to sports betting. Thus, by having a differentiated tax rate, “tax fairness” would be achieved. The alternative, according to the senator, would be to reduce the flat 18% rate to 15%.
In his proposal, the senator also suggested taxing players’ winnings that exceed $420 per month at a rate of 30%.
“The sector has been operating in Brazil from 2018 until today without paying taxes,” Coronel’s proposal said.
“There is nothing more unjust than essential services like those producing food and clothing and workers paying their taxes, while this segment pays nothing.”
“People are betting: out of every ten Brazilians with access to a mobile phone, seven have placed some bets.”
** SPONSOR’S MESSAGE ** Originally founded in 2003, BettingJobs grew rapidly and quickly matured into the full recruitment service provider we are today. We are a globally renowned resource for making qualified connections worldwide.
We are experts in the LATAM region, and we are delighted to exhibit at SBC Latinoamérica this year. Whether you are a client or candidate within the region, please stop by stand C12 for a confidential discussion.
Click here to view our extensive selection of LATAM iGaming roles.
BettingJobs interview
Ahead of SBC Latinoamérica next week, I+M spoke to BettingJobs’ Euan Green about the recruitment experts’ view of developments in the region and what it means for those looking at their career options.
I+M: Firstly Euan, how useful are shows such as SBC Latinoamérica for getting a feel for growth markets such as Latin America?
Euan Green: Industry shows and events are exceptionally telling when it comes to new market growth, from the exhibitors to general attendance they provide a good indication for comparison year on year of the amount of focus in each specific region. Events like SBC Latinoamérica on the surface allow for existing brands in the market to show their dominance, while still also supporting new firms’ market entry due to the volume of B2B opportunities, I find the close-quarters collaboration results in a win-win all around.
I+M: To what extent has BettingJobs seen an increase in inquiries about jobs and candidates in LatAm?
EG: Hugely, starting from events earlier in the year it feels as though LatAm has snowballed in importance. Together with the recent licensing changes to some of the region’s largest potential markets, it’s definitely caused a stir and reason for focus with our clients; both those in the market already and those looking at entry. From a candidate perspective, it’s given people with exposure to these markets an edge above others, particularly if they have local language skills.
I+M: Have you seen a lot of interest from companies ex-LatAm looking at expanding in the region?
EG: Yes, huge demand coming from clients established in Europe and East Asia now looking to grow their brands across LatAm, with Brazil, Mexico, Peru and Chile being the most dominant.
I+M: Do these clients already have infrastructure in the region or are they looking to build it up now?
EG: It is certainly a mix, on the operator side of things, largely due to licensing requirements, we are seeing clients set up operations from scratch, and the localization of brands seems to be the most prominent focus. On the B2B side of things, it appears more straightforward for clients to replicate their existing non-LatAm processes into the region.
I+M: Are you finding staff in situ or are you seeing more personnel looking to move to the region?
EG: LatAm is certainly not short of strong iGaming talent, however, given the rapid increase in demand for candidates in the region we’ve seen a lot of people relocating from Europe and elsewhere. This is a trend we expect to continue in order to meet the demand as the region’s growth inevitably continues.
Colombian deals
Hacksaw Gaming and Push Gaming join forces with BetPlay and Skywind, respectively.
From the subs bench: Two new players are entering the Colombian gaming market. First up is Hacksaw Gaming, in partnership with BetPlay, to which it will provide various online slot titles, including the renowned Wanted Dead or a Wild, Chaos Crew and Stack ‘em.
Hacksaw CEO Marcus Cordes said its entry into Colombia was the culmination of several months of quiet work, supported by the fact its content has proven to be very popular in South America.
The company entered the Lithuanian market in September as part of its global growth strategy.
LatAm push: Meanwhile, B2B game provider Push Gaming is entering the market in partnership with the regional operator Skywind, which will offer slot games such as Razor Returns, Jammin' Jars, Retro Tapes and Big Bamboo, among others.
Junior kickstart: Fiona Hickey, director of new business and markets at Push, explained the agreement marked the beginning of Push’s expansion into the regulated Colombian market and would “kickstart further growth throughout Latin America”.
Colombian lottery
Coljuegos launches MiLoto.
Numbers game: Marco Emilio Hincapié, the president of Coljuegos, has announced the launch of MiLoto, which will focus on attracting younger consumers. With a bet of 4,000 pesos (less than a dollar), which can be made through applications or the website, players have the chance to win up to 120 million pesos (~$28,000).
MiLoto is a product under the Baloto brand, managed by the National Games Operator (ONJ), and it began being played on Saturday, October 21.
Players can win with 5, 4, 3 or 2 correct numbers.
The person who correctly picks all five numbers wins the grand prize of 120 million pesos. If there is no winner, the ‘jackpot’ will continue to grow with each draw until there is a winner.
Until that point, those with 4 and 3 correct numbers will receive an additional percentage to their prize, and players with 2 correct numbers will earn the right to place another bet.
For good or ill: Hincapié explained that the goal they have set is to increase revenue in the industry so that they can make larger donations to regions, with “millions of Colombians in need of better healthcare services”.
Chile legals
The Supreme Court upholds ruling against ANFP.
Check complete: The Chilean Supreme Court has upheld the decision of the Court of Appeals against the National Professional Football Association (ANFP) for its commercial ties with betting companies and dismissed the protective appeal presented by ANFP, which aimed to annul the order from the Ministry of Justice's undersecretariat to terminate its contract with Betsson.
ANFP argued that neither the ministry nor the undersecretariat had the legal authority to decree the termination of such a connection.
Casino in Natales: Meanwhile, the Superintendency of Gaming Casinos reported that Casinos Patagonia S.A. was the only project submitted for the granting of a casino gambling operation permit for the Natales municipality on October 19.
Once the economic offer is received, sealed and signed by the legal representative of the applying company, the evaluation stage of the technical offer begins, which will conclude within a maximum period of 120 days.
Among the specified requirements in the technical terms was a guaranteed minimum economic offer of approximately $192,000.
Also, the new concessionaire should retain at least 80% of the workers employed by the previous concessionaire and invest at least $115,000 to ensure the project has an impact on tourism.
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At a glance
Brazil: ParlayPlay has announced a strategic integration and content distribution partnership with the bookmaker BetGoals to enter the sport-betting arena in Brazil. The company promises a “new level of excitement and dynamism” with the introduction of instant win micro-betting; a concept designed to attract new players.
Peru: The growth in Peru of Kushki, the online payment platform, is closely tied to the development of the online gaming sector in recent years.
"Playing online should always be a positive and rewarding experience," said Rafael Hospina, country manager for Peru and Ecuador at Kushki.
In this context, Hospina explained that a payment being rejected or delayed due to the use of outdated systems or software is detrimental to the final customer experience and, therefore, to the business.
Kushki has a payment approval rate of over 90%, one of the highest in the ecosystem, and they offer various payment alternatives to online betting companies, “adapting to their specific needs through personalized attention”, Hospina added.
Betconnections and Zitro Games have entered into a commercial partnership. The alliance will allow both companies to combine their strengths and knowledge to offer players a wide variety of online gambling games, including Zitro’s popular slots, known for their innovative design, high-quality graphics and exciting features.
EstrelaBet has said it is looking to expand in Latin America. The company attended the recent G2E in Las Vegas for the first time and, in a conversation with GMB, commercial director Fellipe Fraga explained that while Estrelabet was currently focused on Brazil, its experience in marketing and sports sponsorships enabled them to consider expansion in Latin America and “across the world”.
Argentina Country Manager – LatAm
Managing Director for Mexico – LatAm
Calendar
Oct 31-Nov 2: SBC Latinoamérica
Publishing schedule
This is the English version of the LosIngresos+Mas newsletter published yesterday (26 October).
An +More Media publication.
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