Slotegrator: ‘We are betting on Brazil and Peru’
Slotegrator interview, Brazilian regulation, Mexican slots, Chilean blocking +More
Buenas dias! On today’s agenda:
I+M chats to Javier Santos Arango, sales manager at Slotegrator.
The Brazilian senate discusses the use of AI to safeguard sports integrity.
Mexico‘s ban on slot machines advances rapidly.
Twenty-three gambling websites will be blocked this week in Chile.
These promises are made for us.
Slotegrator interview
“We bet on Brazil and Peru because these countries are very promising.”
I+M speaks to Javier Santos Arango, sales manager at leading software supplier and aggregator for online casino and sportsbook operators Slotegrator, who discusses why developments in Latin America make it one of the regions the company is focusing on.
I+M: Where in the world do you see the most potential for growth?
Javier Santos Arango: We believe in the great potential of the Latin America and Asian markets. Asia is a market where players are very interested in games after the pandemic, while in Latin America there is ‘ardor in the blood’. They are both sleeping giants and we are ready to wake them up.
I+M: Is Latin America particularly promising when it comes to the iGaming sector?
JSA: Sure, LatAm is home to some of the world’s most exciting emerging markets. In 2023, the Latin American online gambling market was valued at nearly $11.8bn. By 2029, it is predicted the market will grow to reach $14.75bn. In the face of such rapid and massive growth, it is important to enter the market sooner rather than later, before it becomes oversaturated. Countries such as Brazil, Peru, Mexico, Argentina, Columbia and Chile have grabbed plenty of headlines throughout the sector in the past few years. Brazil’s online gambling GGR is expected to grow significantly and will reach about $1.6bn by 2026.
I+M: I guess the only uncertainty is the timing of market openings?
JSA: Yes, among the countries actively working towards regulatory reforms are Bolivia, Mexico and Brazil. In the latter two, legislation is pending. Brazil enacted a provisional measure to regulate sports betting. Mexico is struggling to rein in the country’s gray market, but in the next three years the market is expected to grow by 33%. Peruvian regulators have big plans to increase charges from iGaming companies – at least three times more than originally planned. The industry may see the finalization of the process before the end of 2023.
Meanwhile, Colombia is updating legal provisions to better adapt to the digital age. In Colombia, there will be a new set of regulations intended to combat problem gambling by requiring online operators to, among other things, detect risky behavior and display warning messages, and enable players to exclude themselves and limit their deposits. In Uruguay, a proposed online gambling bill has been criticized. In my opinion, the next five years will be indicative for the Latin American market as a whole.
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Slotegrator interview continued
I+M: Brazil has the potential to become a world-leading market. How are you approaching the market?
JSA: Brazil’s turn in the iGaming spotlight is much deserved. A market of this size opening up is huge, and not only for established operators: smaller local and international companies have a fantastic opportunity to carve out their own space. Another factor that contributes to the industry's expectations is the love of sports. Football has a special place in the hearts of many Brazilians.
The most notable change (aspect of the new regulations) is the tax on revenue for sports-betting operators. In order to increase the revenues flowing to the Ministry of Sports from 1% to 3%, the tax has been raised from 16% to 18%. Unfortunately for players, a 30% tax on winnings above R$500 ($100) remains in effect.
In 2023, Brazil took a big step in the development of its gambling industry and there might be more to come. Politicians and government agencies are increasingly discussing the positive impact that gambling can have on the economy and tourism. In short, all signs point to a promising future for iGaming in Brazil.
I+M: What is the strategy behind your partnerships and in which countries are you aiming to expand your presence and in which are you looking to consolidate it?
JSA: We are tending to expand our presence all over the world. And we take concrete steps for this. Our partnerships with operators are based on a win-win strategy: we can help to promote games with our solution APIgrator and our partners have a chance to be known worldwide.
I+M: Do you think that the current process of developing a regulatory framework for the industry in many of the biggest countries of Latin America will have a positive outcome?
JSA: Regulation is a form of standardization. And this is a crucial step on the path to a system that will be transparent for the entire market. We are betting on Brazil and Peru because these countries are very promising.
I+M: Is the process of moving towards regulation different in any significant way to the same processes elsewhere in the world?
JSA: In my opinion, Latin America develops as a region with its own temperament. Regulation is not a straightforward process, so there can be difficulties and sometimes misunderstandings. It takes time to get used to new things. So, current actions in this sphere are characteristics of development, and we need to track changes and build the business with this in mind.
I+M: How much do you plan to grow in the region this year?
JSA: Until the end of this year, we will be focused on the Latin American market. Earlier this year, we visited Brazil and Columbia. And now we understand what providers and players need there, so we have more ideas for expansion and know what we can offer.
I+M: And in 2024?
JSA: We are planning to continue deep research of this market next year. There will be business trips to Peru, Brazil again and some other countries.
Brazilian regulation
The Senate discusses the use of AI to safeguard integrity in sports betting.
Fight the good fight: Artificial intelligence has been one of the main weapons in the fight against organized crime and its match-fixing attempts, and it was the focus of discussions at the public hearing of the Sports Commission of the Brazilian Senate last week.
Senator Carlos Portinho (PL-RJ) argued that part of the taxes on sports betting proposed in the Provisional Measure and other bills should be reserved to improve the capacities of the Public Ministry (MP) of the Federal Police (PF), to combat criminal groups.
He noted they also have tentacles in drug trafficking and other criminal networks.
The legal advisor to the Ministry of Sports, Guilherme Benages, agreed.
The special advisor to the Ministry of Finance, José Francisco Mansur, explained that AI software can detect when suspicious or atypical bets are placed and is capable of profiling the performance of athletes in a game.
The director of Competitions of the Brazilian Football Confederation (CBF), Júlio Avellar, asserted that there is a match-fixing crisis that has the potential to “erode the sport”.
The director of the Brazilian Association for the Defense of Sports Integrity (Abradie), Guilherme Buso, reported that the number of alerts in Brazil has grown year after year and that so far in 2023 more complaints were made than in any other country.
Mansur stated that "Brazilian soccer is going through the biggest crisis in its history”.
He added that this is why the Ministry of Finance with the ministries of Sports and Justice are to create an inter-ministerial group with the participation of civil society and organizations such as the Comptroller General's Office, the CBF, the Brazilian Olympic Committee, the Brazilian Institute of Responsible Gambling and other associations representing lotteries, games and bettors.
Mexican slots
The ban on slot machines and reduction of the term for casino permits advances quickly.
Done deal: The decree that bans slot machines and reduces the term of licenses for casinos has already been notified to the National Commission for Regulatory Improvement (Conamer) by the Ministry of the Interior (Segob). The measure will be enacted in the next few days with the signature of President Andrés Manuel López Obrador.
On September 7, Segob drafted the decree by which “several provisions of the regulation of the Federal Law of Gaming and Lotteries are amended, added and repealed”.
The decree will repeal the sections that allow the carrying out of “drawings of numbers or symbols through machines”, i.e. slot machines.
The operational permits for casinos will also expire, meaning slots will effectively be prohibited.
The decree will also reduce the number of years – from 25 years to 15 – of permits granted by the Federal Government for the operation of casinos and gambling houses, which raised concerns among these businesses.
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Chilean blocking
Twenty-three gambling websites will be blocked this week.
Low block: Twenty-three websites linked to online gambling houses will be blocked this week in compliance with the ruling of the Third Chamber of the Chilean Supreme Court. The Undersecretary of Telecommunications, Claudio Araya, told the Chilean radio station ADN that “the Supreme Court was categorical in stating that these sites are illegal”.
He explained that “due to the neutrality of the net, [the companies] cannot block legal content, but here we are dealing with content that has already been declared illegal by the highest court in the country... what is true is that this is limited to the 23 sites determined by the Supreme Court”.
“I would expect that within this week or early next week the URLs will be blocked,” he added.
Sports integrity
Colombia football match-fixing investigation.
High alert: Several clubs are being investigated in Colombia due to ‘alerts’ for possible match fixing, asserted Fernando Jaramillo, president of Dimayor, the governing body of Colombian soccer.
In response, the president of Coljuegos, Marco Emilio Hincapié, said the body has “been very attentive to the issue [but] this situation is beyond the radar of Coljuegos”.
“What is happening is that arrangements are being made under the table to fix games, a situation that worries us, because it would affect the free will and how the bets of each citizen are being developed voluntarily through the Internet,” he added.
Peruvian esports
A new era for esports in Peru.
Game on: On September 21 the pre-opening of Videna in Game was held in La Molina, Lima, Peru, a state-of-the-art facility that provides a space for amateur and professional gamers to have an optimal gaming experience.
The facility has computers equipped with high-generation RTX graphics cards and high refresh rate monitors, as well as areas for the general public and a VIP area with higher-performance equipment and larger monitors.
The creation of the National eSports League in Peru was also announced, which will allow players of all levels and video game genres to compete for recognition and prizes.
Calendar
Sep 28: SIGMA Americas, Curaçao
Oct 9-12: G2E Las Vegas
Oct 31-Nov 2: SBC Summit Latinoamérica
Publishing schedule
This is the English version of the LosIngresos+Mas newsletter published yesterday (28 September).
An +More Media publication.
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