Entain predicts 365Scores' EBITDA to grow by 50% by 2025
Entain’s growth expectations, Apuesta Total’s Effies win, Chile-Colombia regulatory summit, Argentina job threat, Crypto casinos +More
Welcome to the third edition of our weekly LosIngresos+Más newsletter. Here you will find the most relevant and latest news from the betting industry in Latin America: regulation, business moves and new investments, country by country. In this week’s issue:
Entain estimates EBITDA from 365Scores to grow by up to 50% by 2025 due to LatAm operations.
Peru’s Apuesta Total wins two Effie advertising awards.
Gambling regulators from Chile and Colombia discuss consumer protection.
AMAJO believes virtual casinos risk Argentinian jobs.
Crypto casinos: What’s the story?
“Latin America is different from other regions because of the wide variety of sports that clients are looking for,” says Uplatform director.
TransAct’s sales director confirms its commitment to Latin America.
Entain’s LatAm growth
365Scores’ EBITDA to grow by up to 50% by 2025 due to Latin America operations.
Following the announcement on April 5 that Entain had acquired 365Scores for $150m, the company has projected the Hong Kong-based sports media and live results provider to report EBITDA of between $31m and $37m by 2025. A key part of this figure, Entain added, will be down to the income earned in Latin America.
Sameer Deen, director of strategy at Entain, said: “365Scores’ leadership position in Latin America will significantly impact our Brazil operation, supporting our growth projections in a market that is a priority for us and that, we believe, is on a clear path towards regulation, as is already the case in other markets in the region.”
If the projections are met, Entain would achieve a 50% growth in EBITDA by 2025.
Deen added that the agreement with 365Scores could deliver between $19m and $25m in EBITDA in 2024 and that this would grow “around 50% by 2025”.
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Apuesta Total awards
Peruvian online sports betting site scoops two Effie advertising prizes.
Apuesta Total, one of Peru’s most important online sports betting sites, won two Effie awards (one silver, one bronze) in the Entertainment and Sports category.
The company claimed silver for the brand platform ‘To win, you have to believe’ and bronze for the globalist campaign ‘The Commandments of Adjustment’.
The awards are given to the best marketing and advertising campaigns and are a symbol of outstanding achievements, recognized worldwide.
Apuesta Total is the only bookmaker that has won an Effie prize.
‘To win, you have to believe’ emphasized the faith that punters put into their plays until the last minute.
‘The Commandments of Adjustment’ recalled the moments before the penalty Uruguay’s Sebastián Abreu scored against Ghana at the 2010 World Cup in South Africa, which sent his country through to the semi-finals.
Both campaigns highlight the anticipation and moments of excitement prior to the outcome, which Peruvian gamblers call “adjustment” – putting up with stress while still believing in their bets.
Chile-Colombia summit
Authorities from Chile and Colombia meet to discuss protecting consumers.
Officials from Chile’s Superintendency of Gaming Casinos (SCJ) of Chile have met with representatives of Coljuegos, the Colombian regulatory body, to share experiences on issues of regulation and the development of the gambling market, particularly online games.
The meeting, held in Colombia on 7 June, comes on the back of the draft regulation of online gambling and sports betting resurfacing in Chile, after the Economy Committee of the Chamber of Deputies approved the rules that regulate them.
Vivien Villagrán, superintendent of the SCJ, met with Andrés Herrera, national director of the National Consumer Service (SERNAC), to discuss how to safeguard and protect the interests and rights of consumers.
Last year, Liliana Cardona, vice-president of commercial development at Coljuegos , led a similar roundtable in Bogotá with her Peruvian counterpart, Yuri Guerra Padilla, after the Congress of Peru passed the law on remote sports betting and gaming.
Guerra Padilla oversees the Sanction and Control Directorate of the General Directorate of Casino Games and Slot Machines at the Vice Ministry of Tourism of Peru.
Draft Law No. 035-2022, which will regulate remote gambling and betting in Chile, entered the Chilean Congress in March 2022 and was expected to be examined by the Economic Committee of the Chamber of Deputies in August.
The executive branch asked Congress for a 30-day delay so that the Ministry of Finance could introduce a tax on online betting, but it never did.
The bill is still under discussion, but it includes the granting of general licenses for five years, renewable, or temporary licenses for six months, non-renewable, through which companies will be able to operate any type of betting or gambling, with the exception of lotteries and those that may affect public order, national security, the honor of persons, or are directed at minors.
According to the regulator, the iGaming industry already generates $170m annually in Chile. If the law is passed, the IRS would raise about $11.5m in the first year alone and by the fifth year it would collect close to $60m.
Mendoza’s job threat
The Mendoza Association of Official Gaming Agents (AMAJO) believes jobs are in danger.
Less than a month after the arrival of online gambling in the province of Mendoza, Argentina, doubts have arisen about its potential complementarity with physical gambling and how it could affect the latter.
The treasurer of AMAJO Enrique Paolini stated they heard the news "on the radio" and that, as a result, they requested a hearing with the authorities because they fear that the introduction of online gaming will end up eliminating jobs.
It is estimated that in Mendoza around 1,300 families are linked to face-to-face gambling.
Paolini assured that "there is an important advance of international interests, which are taking a position through technology" and that this will bring "the disappearance of gaming operators and agencies. We are fighting so that all these families do not lose their sources of livelihood”.
The representative of AMAJO maintained that the potential risk of generating problematic gambling behaviors is greater in the virtual space since "within the four walls of their home [people] do not have time to think and regulate their gambling intentions… and that can become a problem of compulsive gambling".
He added that face-to-face gambling and the relationship that exists between the agent and the bettor "minimizes the psychological effect of entering compulsive gambling”.
The companies authorized by the Mendoza State Prosecutor's Office are BetWarrior, Super7 – which are both already enabled – Bplay, Codere and Rushbet.
Crypto casinos
What is there to know about these online gaming platforms?
Crypto casinos – online casino gaming platforms that accept cryptocurrency as a form of payment – are becoming increasingly popular among online gamblers because they offer many advantages over traditional online casinos.
The most obvious is that cryptocurrencies allow transactions to be extremely fast and secure and without intermediaries (such as banks). Players can make deposits and withdrawals quickly and securely, with no waiting times or fees.
The second advantage is anonymity. Although this could be a headache for anti-money laundering entities, gambling with cryptocurrencies allows you to keep the identity of the bettor private. On the other hand, the tax collector cannot collect taxes from someone he does not know.
Third is the savings compared to the use of traditional money. As all the movement is carried out through decentralized networks, there are no commissions or charges for transfers to pay.
Of course, there are also challenges and risks. The main one is the volatility of the value of cryptocurrencies that can fluctuate rapidly and affect the value of a player's wins or losses.
Since not all online casinos accept cryptocurrency, its use can limit the options for players who prefer to use it.
As cryptocurrencies are new, regulatory frameworks are unclear and players will take a substantial risk as they will not always know if the crypto casino they are playing at is legit and safe.
There are already crypto casinos in Chile, Spain, Argentina and Colombia and their number will increase as more people enter the world of cryptocurrencies.
Currently, the same regulatory framework applies to them as to traditional online casinos and games of chance.
Although many international crypto casinos operate in Latin America and accept players from the region, most are unlicensed, and that players must face on their own.
Brazil regulation
The discussion about gambling regulation in Brazil could affect the industry throughout Latin America.
Randall Lacayo, sales director at Uplatform, the Brazilian sports betting and casino platform, affirmed that the gaming market in Latin America is expanding, as is evident in countries such as Argentina, Colombia and Peru, but also in Chile and Brazil, where the discussion regarding the regulation of the game industry is truly relevant.
The discussion about regulation in Brazil could influence legislation and the way in which other countries regulate the industry, given the relative size of the Brazilian market and its growth potential.
Due to the large size of the country, potential market and the fact that the regulation of the gaming industry will be among the most modern in the region, it is highly probable that it will incorporate the latest trends – and lessons learned – in the sector and this could lead it to become a regulatory paradigm even for countries with well-established regulatory frameworks.
In fact, the Paraná Lottery announced that its call to grant sports-betting operation licenses, published on its website on May 19, received more than 350 visits from 25 different countries in less than a month; more than 10 visits per day. More than 80 visitors downloaded the documents to participate, demonstrating the enormous potential of such a market.
For that – and other demographic reasons – Uplatform is turning its attention to potential esports players and the options that live betting can offer, as well as all forms of soccer betting (by far the largest market) and other sports disciplines.
For Lacayo, Latin America is a quite different and mixed region (from the others in which Uplatform is present – Asia and Africa) due to the wide variety of sports that customers are looking for, due, in time, to the influence of European and American sports on the taste of their bettors.
For this reason, Lacayo said the biggest challenge facing Latin American operators today is to find fresh, quality products that players feel attracted to and identify with.
Today, in Latin America, he added, online game bettors look for options that are attractive and original, such as live betting, with many possibilities to explore and choose from.
In casinos, the preference of the players with slot machines and live casinos is maintained and, for the new generations, "esports are a necessity".
Faced with this, Uplatform has launched the ‘All-in-One’ concept, which covers all the needs of all types of bettors in a single place, thus there is no need to visit several sites, because "everything is at hand", concluded Lacayo.
SiGMA Americas 2023
According to Lacayo, Uplatform will stand out at SiGMA Americas 2023 (being held in São Paulo, Brazil from June 14-18) for its "vast offer in sports and its markets, esports and casino" for "the end-customer, the bettor"; in addition to professionalism and knowledge of the gaming operator's needs when deciding and choosing the best iGaming platform.
TransAct’s commitment
TransAct’s presence at PGS 2023 “reinforces our commitment to the gaming industry in Latin America", says the company’s sales director.
Diego Mejía, director of sales – casino & gaming at TransAct, which designs printers for the gaming sector, confirmed the company’s participation at the 20th edition of the Peru Gaming Show (PGS), which is taking place on June 14-15 at the Jockey Exhibition Center in Lima.
“Our presence reiterates our commitment to the gaming industry in Latin America, and we want to make that message very clear,” he said.
At the show, TransAct will highlight its award-winning promotional coupon system called Epicentral, the only enterprise-grade bonus and prize software package that can target customers in real time while they play their favorite slot machine or electronic table game.
Epicentral works with all existing gaming and slot management systems, regardless of manufacturer.
“Unlike other providers, we are 100% committed to the Latin American market, which is why we have strengthened our presence to continue growing together with our customers,” Mejía said.
“As a foreign company with a global presence, TransAct will always support regulatory issues and growth in the region. We are interested in the fact that the gaming industry in Latin America continues to grow and that it is no longer considered a potential market but rather a developed market with real trends.”
Peru has become one of the benchmark countries in the industry, and for this reason, being able to participate in the fair gives us the option of continuing to support its development," the executive concluded.
Publishing schedule
This is the English translation of the Los Ingresos+Mas newsletter published yesterday.
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